How to Make Your House Appraise for More

There are good reasons for trying to make your home appraise for more than it did in the initial home appraisal. For example, you might be considering refinancing. If your home can appraise for more than the initial appraisal, this will automatically lower the amount of financing that is needed as a percentage of the value of the home. This can result in a lower interest rate when refinancing. Increasing the appraised value of your home can also enable you to have the necessary value in your home to add a second mortgage.

Things You'll Need

• Initial home appraisal

Instructions

1. Examine the initial home appraisal, especially the number and types of rooms. Your mortgage papers should list the appraiser, whom you can contact and ask for a copy. When looking at your appraisal, note that if you can add a wall to an attic or to a basement and add a room, this will increase the number of rooms in your home, which will increase its appraised value. You can also increase the number of rooms by adding a closet and flooring to an unfinished attic, turning it into a bedroom, which will increase the value.

2. Add an outbuilding to your property. Even if you simply buy a pre-built shed, this can increase the value of the appraisal much more than the cost of the shed.

3. Find a way to add a half-bath or a full bathroom. While this can be a significant cost, it will dramatically increase the amount of your appraisal. Consider also that refinancing when interest rates are low will give you a lower monthly mortgage bill, and you can use the savings to pay off the loan to add the bathroom.

4. Thoroughly clean the house and fix up the yard. Although there is no category on an appraisal form for neatness, it can affect the perception of the appraiser, which could add to the overall value of your home.

5. Add a porch or deck. This will not affect the square footage associated with your house, but it will add to its appeal and marketability, which can increase its appraised value.

Tips & Warnings

• Check all of the plumbing before the appraisal to make sure there are no last-minute glitches. During times of recession, housing values are usually down, which will cause your home to be appraised for less.

References

• Home Appraisal Process

Resources

• Mortgage Rate Trends