The home inspection and appraisal phases in the home selling process can be worrisome for many homeowners as they greatly affect the market value and final sales price of the home. It’s crucial to be prepared for the home inspection, so the appraiser recognizes the true market value of your property.
Why Does the Home Inspection Matter?
The world of home buying and selling can often seem confusing. If you’re in the process of purchasing a new home, you might have heard about the importance of a professional home inspection. But what exactly is a home inspection checklist, and how does it differ from an appraisal report? Let’s dive in!
A home inspection is a visual examination of the physical structure and systems of a home. It’s a non-invasive process that helps a prospective buyer understand the home’s condition before they make a purchase. During the home inspection, the inspector will examine everything in your home, from the roof to the basement, including electrical, plumbing, and HVAC systems. If any problems are uncovered, the buyer could use this information to negotiate the price.
Now, let’s talk about the difference between a home inspection checklist and an appraisal. An appraisal is an estimate of the value of your property. It’s used by mortgage lenders to make sure the home is worth the amount they’re lending. An appraiser doesn’t go into the same level of detail as a home inspector, but looks at the overall condition of the home and local property values.
How to Sell a Home in Oakland: The Inspection Process
In Oakland, the home inspection typically takes place before the seller lists the property. This way, a clean inspection can be used as an Ace, and can help attract non-contingent offers from a buyer. Once both parties sign the purchase agreement, the home goes into escrow, which is a holding period before closing. Then, all that’s left is the appraisal.
A home inspection is a crucial step in the home-buying process. It helps the buyer understand the condition of the home and allows them the opportunity to negotiate with the seller or even cancel the sale if there are major issues. Just remember, it’s different from an appraisal which focuses on the value of the property.
Ways to Improve Your Home Ahead of the Home Inspection
When preparing to sell your home, it’s essential to understand what upgrades and improvements will increase its value. While many homeowners may have a good idea of what they think will add value, a professional home inspection can tell you the real story. Here are some common mistakes homeowners make when trying to increase the value of their home before an appraisal.
- Stick to typical neighborhood improvements: Unique or unusual improvements like a putting green or Olympic-sized pool are unlikely to be fully reflected in an appraisal.
- Focus on permanent fixtures that add value to your home: Removable appliances, outdoor sheds, curtains, and other items that aren’t integral to the property don’t add value.
- Understand local standards: To make the most of your investment, understand what’s typical for your neighborhood and focus on improvements that align with local standards.
Remember to keep an eye on local standards and focus on permanent fixtures, and you’ll be on your way to increasing the value of your home. Real estate agents can provide a comparative market analysis of your home so that you know what the benchmark is.
Home Inspection Checklist – Mistakes to Avoid
If you’re looking to increase the value of your home before a visit by certified home inspectors, it’s important to avoid some common mistakes. Upgrades and improvements to your home are a great way to add value, but not all upgrades are created equal. In order to make the most of your investment, it’s important to understand what the visual inspection includes.
We’ve already talked about avoiding over-improvement – while you may love the look of certain upgrades, the cost of the upgrade may not be reflected in the appraised value. High-end kitchen remodels or crown molding in every room may not be reflected in the value.
Don’t invest in anything that might be considered personal property. Appraisers cannot account for personal property, which is anything that can be moved, like sheds and above-ground spas. So, if you want to add value to your home, it’s best to focus on permanent fixtures that are tied down to the home.
Lastly, avoid adding anything that’s highly unusual for the neighborhood. Going back to our examples earlier, if you have a putting green or Olympic-sized pool in your backyard, but no one else in the neighborhood does, it’s unlikely that the full value of those improvements will be reflected. So, it’s important to understand what’s typical for your neighborhood and focus on improvements that align with local standards.
What Does a Professional Home Inspector Look For?
A professional home inspection, as we’ve already said, is a crucial step in buying or selling a property. It is important to understand what an inspector is looking for to maximize your home value.
Your home’s value is determined by the quality and condition of the “bones” of your home. Custom-made furniture and personal items won’t impress potential buyers, but the dimensions and layout of your home, its overall quality and condition, and its permanent upgrades will. During a home visit, you should expect the buyer’s agent and the home inspector to take measurements, examine amenities, and take photos to assess the need for future repairs:
- The dimensions and layout of the home
- The overall quality and condition of the home
- Health and safety concerns
- The appearance of the home’s exterior, including the foundation, walls, roof and gutters, heating and cooling systems
- The appearance of the inside, including the floors, walls, trim, and interior paint
- Permanent additions or upgrades to the property, such as basements, pools, decks, and garages
- Whether the property conforms to the neighborhood (style, condition, use, construction) for resale purposes
The key to maximizing your home’s appraised value is to focus on the quality and condition of the structure of your home. From the layout and dimensions to the permanent upgrades and neighborhood conformity, these are the factors that will have the biggest impact on your home’s value – after all, no one wants to have to make costly repairs to a home they just purchased!
Make Your Home Attractive to Prospective Buyers
Selling your home can be both time-consuming and overwhelming, but with the right preparation and strategies, you can make it a successful experience. Whether you’re in a competitive market or not, it’s important to know how to make your home appealing to potential buyers in the Oakland area.
Help Your Real Estate Agent Help You
While some may consider selling their home without a real estate agent to save on commission fees, it’s not recommended for first-time sellers. A good agent not only acts as your guide throughout the process but can kick the marketing of your home into high gear by curating photos and videos and advertising your property on multiple listing service (MLS). Going without an agent can lead to challenges such as poor advertising, lack of market value understanding, and difficulty securing top-dollar offers.
When selecting a real estate agent, make sure they have experience in your specific area and are familiar with the local housing market. Look for agents with certifications, such as membership in the National Association of Realtors, to ensure they follow ethical guidelines.
Before hiring an agent, thoroughly vet potential options by checking their past transactions, contacting them directly to gauge their customer service, and asking about their process for determining your home’s fair market value.
