One of the primary contributing factors that determines how much money you can receive through a reverse mortgage is the appraised value of your home. After you complete your application, your loan will enter the processing phase. During this phase, the mortgage company will complete numerous tasks that will prepare for your loan to be reviewed by an underwriter. One of these tasks is ordering and receiving the report that determines the estimated value of your home, otherwise known as the appraisal. Not only does the appraiser… look at the size and condition of your home, he or she also considers recent sales in your neighborhood to determine what your home is worth. While there’s no sense in undergoing a major renovation to increase your property’s appraised value, there are a few quick fixes you can easily make that will help.
Create a List of Recent Improvements
Appraisers are qualified professionals who know what to look for when it comes to renovations. However, make it easier on them by providing a brief list of any home improvements you’ve made over the last few years, particularly significant upgrades like new windows, a roof, new appliances and heating and cooling systems. Also note cosmetic changes that may add value to your home like updated flooring.
Provide Your Own Comps
Your appraiser will use recent neighborhood sales to help determine your home’s value, but no one knows your area like you. Make sure the best comparable properties are being used by finding your own. Use a website like Zillow or Trulia to find recently sold homes in your area, and then select a few that are similar to yours in size and condition. Make sure you are looking at properties that have recently sold, not properties that are currently for sale. Give your appraiser a copy of each to help cut back on his or her workload.
Tidy Up Ahead of Time
While most appraisers won’t admit to being swayed by a clean or messy home, it’s always best to put your home’s best foot forward. Mow the lawn and de-clutter prior to your appointment. If you’re tight on time, be sure to at least give the kitchen and bathrooms a thorough scrub down. Even if your home doesn’t have a lot of upgrades, showing that you keep up with the care and maintenance of the property can only influence your appraiser in a good way.
Let Appraisers Do Their Job
It may be tempting to accompany your appraiser room by room while offering insight, but this can actually inhibit your guest from getting the job done efficiently. Conducting a home appraisal is quite a technical process involving taking measurements, photographs, and extensive notes. Give your appraiser breathing room while still making yourself available for any questions.
None of these steps require any extra money to potentially help increase your reverse mortgage appraised value. Instead, just a little time and effort can create a positive, efficient appraisal that will potentially result in a higher market value for your home’s reverse mortgage application. Click here to learn more about iReverse’s application process.