How To Get Your Property Appraisal Ready

You have found a buyer for your property you intended to sell and both of you have agreed upon the transaction cost. The buyer has already applied for a home loan to fund his purchase and an expert team from the bank would soon be visiting the premises to evaluate the property. This process is known as property appraisal and helps banks understand what they can get in case a buyer defaults on his repayment and the lender has to sell the property to recover the loan.  This greatly concerns the buyer, too. To borrow the amount he requires for the purchase, the property must get a good rating from the appraisal team. The money a buyer is shelling out for the property and the value at which the bank evaluates the property must be close to each other, if not the same. But, if you thought that as a seller there is not much to worry as the buyer has already agreed to pay you quoted, you would be greatly mistaken.

If the bank evaluates your property at Rs 40 lakh while you are asking the buyer to pay Rs 60 lakh, the deal is going to fall through in all likelihood. The bank will lend only 80 per cent of the total value of the house i.e. Rs 32 lakh and the remaining amount will have to be paid by the buyer. There is a huge gap between the two figures, one that would be hard for a buyer to bridge. If this gets repeated, you will be waiting to sell your property for a long time. This is precisely why you must ensure your property gets evaluated fairly by the bank's appraisal team.

How can you ensure that? Well, you can't just change the location or the structure to get the best rating, but you sure can impress the experts by making some small changes. Simple renovations and structural changes will play the trick. How about getting your painted? The worn out paint would most likely dampen the spirits of the appraisal team, too. Those leaking taps and loose electric switches, tiny as they are, have the potential to cause great damages.  Do let the experts know if you recently got the kitchen remodelled or changed the furnishings of the bathroom.

You also have to get the property ready to extend a warm welcome to the team even if it is a grand structure and you are certain you do not need to impress people by using small tactics. A grand welcome that is also flaunting a neat and clean look would surely be rated several notches up.