How to Prepare for a Home Appraisal Before Selling
Preparing for a home appraisal before selling can help ensure the appraiser has accurate information about the property and its improvements. Sellers should focus on the home's condition, document recent upgrades, address obvious maintenance issues, and work with their Realtor to provide relevant property information through the appropriate process.
Nora Pajian, a Colorado Springs Realtor with Engel & Völkers, helps sellers prepare their homes for the market and understand how pricing, condition, improvements, and comparable sales can affect a home's market position.
What Is a Home Appraisal?
A home appraisal is an independent opinion of a property's value, often completed for a buyer's lender during a financed purchase.
An appraiser may consider:
Recent comparable sales
Property size
Location
Condition
Improvements
Features
Current market conditions
Why this matters
An appraisal is different from a home inspection. An inspection primarily evaluates the property's physical condition, while an appraisal focuses on value.
Start With the Home's Overall Condition
Before the appraisal, walk through the property and identify obvious maintenance issues.
Consider addressing:
Leaking faucets
Damaged flooring
Broken fixtures
Peeling paint
Damaged doors or windows
Visible exterior wear
Why this matters
A well-maintained property can make it easier to accurately present the home's current condition and features.
Make a List of Recent Improvements
Create a detailed list of improvements you've completed.
Examples may include:
Kitchen renovations
Bathroom updates
New flooring
Roof replacement
HVAC replacement
Window upgrades
Finished basement
Landscaping improvements
Why this matters
Providing accurate information about improvements can help ensure relevant property details are available for consideration.
Gather Documentation
If available, organize documentation related to major improvements.
This could include:
Receipts
Invoices
Permits
Contractor information
Product specifications
Warranties
Why this matters
Documentation can help verify when work was completed and what was involved.
Not every improvement will increase appraised value dollar-for-dollar, but accurate information gives the appraiser a clearer picture of the property.
Don't Overlook Exterior Improvements
The exterior is part of the property being evaluated.
Before the appraisal, consider:
Maintaining the landscaping
Cleaning exterior surfaces
Addressing visible damage
Checking fencing and gates
Cleaning gutters
Maintaining walkways and patios
Why this matters
The appraiser will consider the overall property, including exterior condition and features.
Make Sure the Property Details Are Accurate
Review the information available about the home and make sure basic facts are accurate.
Pay attention to:
Square footage
Bedroom count
Bathroom count
Lot size
Garage spaces
Finished areas
Property improvements
Why this matters
Accurate property information is important when determining how a home compares with other properties.
Understand the Difference Between Above-Ground and Below-Ground Space
Finished basement areas can be valuable features, but they may be treated differently from above-ground living space depending on appraisal standards and property characteristics.
Why this matters
Sellers should avoid assuming that every finished area contributes to value in exactly the same way as above-ground living space.
Your Realtor can help you understand how similar properties in the local market have been evaluated.
Review Recent Comparable Sales With Your Realtor
Before the appraisal, your Realtor can help you understand recent comparable sales in the area.
Look at:
Sale prices
Property size
Location
Condition
Features
Recent improvements
Sale dates
Why this matters
Comparable sales provide important context for understanding the property's current market position.
Don't Make Last-Minute Luxury Upgrades Just for the Appraisal
Not every expensive improvement will produce an equivalent increase in appraised value.
Before completing a major project, consider:
Cost of the improvement
Local buyer demand
Comparable properties
Expected market value
Whether the improvement fits the surrounding homes
Why this matters
A project should make sense for the property and market—not simply be completed in hopes of increasing the appraisal.
Clean and Declutter the Property
An appraisal isn't the same as a showing, but a clean and organized property can make it easier to see its features and condition.
Consider:
Removing unnecessary clutter
Organizing storage areas
Cleaning major rooms
Improving access to mechanical systems
Making important areas easy to view
Why this matters
The goal is not to stage the property specifically for an appraisal. It's to make the home's condition and features accessible and easy to evaluate.
Provide Relevant Information Through the Proper Process
Sellers and their Realtors may have useful information about the property, including improvements and relevant comparable sales.
Work with your Realtor and the appropriate parties to determine what information can be provided to the appraiser.
Why this matters
Accurate, relevant information can help the appraisal process by ensuring important property details aren't overlooked.
What Sellers Shouldn't Do
Avoid:
Trying to influence the appraiser's value
Providing inaccurate property information
Exaggerating improvements
Assuming every upgrade adds equal value
Making unsupported claims about the property
Relying on the listing price as proof of value
Why this matters
The appraiser must independently develop an opinion of value using appropriate data and professional standards.
What If the Appraisal Comes in Lower Than Expected?
A lower-than-expected appraisal can affect a financed transaction.
Depending on the purchase contract and circumstances, the parties may consider options such as:
Reviewing the appraisal for factual errors
Requesting a reconsideration of value through the appropriate process
Renegotiating the purchase price
Reviewing other contractual options
Why this matters
A low appraisal doesn't automatically mean a sale will fail. The next steps depend on the contract, financing, and circumstances of the transaction.
Common Mistakes Sellers Make Before an Appraisal
Waiting until the last minute to address obvious maintenance issues
Not documenting major improvements
Assuming every renovation increases value equally
Providing inaccurate property information
Focusing only on the home's appearance
Ignoring relevant comparable sales
Assuming the listing price determines appraised value
Frequently Asked Questions
Should I make repairs before a home appraisal?
Addressing obvious maintenance issues can help present the property accurately. Whether a particular repair is worthwhile depends on its cost, condition, and potential impact.
Do renovations increase a home's appraised value?
They can contribute to value, but improvements don't necessarily increase value dollar-for-dollar. The impact depends on the quality of the work, local market conditions, comparable properties, and other factors.
What documents should I provide for an appraisal?
When available, organize receipts, invoices, permits, warranties, and other documentation for significant improvements. Your Realtor can help determine what information is appropriate to provide.
Does an appraiser consider curb appeal?
An appraiser considers the property's overall condition and characteristics. Maintaining the exterior and addressing visible issues can help ensure the property is accurately presented.
What happens if my home appraises below the contract price?
The impact depends on the buyer's financing and the purchase contract. The parties may have options to renegotiate, request a reconsideration, or pursue other remedies provided by the agreement.
Key Takeaways
Make sure the home's condition and property information are accurately presented.
Document major renovations and improvements.
Address obvious maintenance issues before the appraisal.
Review comparable sales with your Realtor.
Don't assume expensive upgrades automatically increase value by the same amount.
Provide relevant information through the appropriate appraisal process.
Understand that the appraiser independently determines the property's value.
Preparing to Sell Your Colorado Springs Home?
A home appraisal can play an important role in a financed real estate transaction. Preparing your property and organizing accurate information can help ensure the appraisal process has the details needed to evaluate the home.
Nora Pajian, a Colorado Springs real estate agent with Engel & Völkers, helps sellers prepare their properties, evaluate market conditions, and develop a strategy for selling their homes.
Contact Nora today to discuss your Colorado Springs home sale.
