Consumers have a variety of misconceptions around appraisals.  The most important misconception is that appraisals represent a factual value of the worth of your home.  Your home is worth what someone is willing to pay for it, period.  Appraisals remain an important tool in the world of real estate because banks rely on that valuation to determine how much they will lend against the property.  Following a few simple steps will ensure that you get the maximum value for you home.

Appraisers are certified to value properties.  They go through fairly arduous training to understand how to ferret out the nuances that make each house unique, and therefore adding or subtracting from the home’s value.  Despite all of this training, appraisers will not be able to see every piece of value you have added to your home.  The first rule of dealing with appraisers is to be present during the walkthrough.  You will be pleasantly surprised at how many questions they ask you and how helpful you can be in describing the cost of additions and upgrades that may not be apparent to the naked eye. 

Before the appraiser gets to your property, prepare a simple list of any recent (past five years) upgrades or modifications you may have done to your home to add value.  This can either be given directly to the appraiser or used as a guide when you walk through your property with the appraiser.  Be sure to have accurate cost information because that does make a difference.  A bathroom renovation that costs $5,000 will be more valuable than one that may have costs only $2,000. 

During the walk though, politely point out areas that make your property unique.  Only note items of significant value, as the appraiser will not be interested in the fact that your property has ceilings that are 1 inch higher than your neighbors.  Note items like original hardwood floors that have been refurbished or new windows throughout the property.  These items add real value and should not be missed in the appraisal. 

Don’t forget to ask the appraiser questions as well.  Appraisers are an excellent source of market information because they typically work around a few neighborhoods.  Ask how your property compares to the average properties he sees and ask if there is anything you can do to add a significant amount of value to the home.  For example, the appraiser may ding your home for having a roof that is 20+ years old and he may suggest a cheap alternative to a full tear down that could add significant value.  This can be used later to bargain with potential buyers as they consider purchasing the property. 

Think of the appraiser as a free resource or a guide to help you maximize your properties value.  Not only should you be eager to help them maximize the value of your home, but you should seek information from them as well.  Appraisers can be a true value added resource and cost you only a few hours of your time.