How to Increase the Value of a home Appraisal

“Actual” Value (or “Market” Value) refers to how much money a buyer would pay for your home – today – as is!

That is often different than your home’s “Appraised” value. Mortgage lenders generally require that a home appraisal be completed before they will finance any home. They want to know exactly what they are paying for. Sellers may also get appraisals done (by a Certified Appraiser) to determine their property value, as the bank would see it. Homeowners may need an appraisal if they are seeking an equity take out (“taking money out” of their property for other things).

Because lenders want to err on the safe side, they always like to leave a bit of “cushion” room between the actual value of your home and the appraised value of your home, to allow for such variances as market fluctuation.Thus, the appraised value of your home is often slightly less than what a buyer might pay today for your home.

There are several ways you can boost the value of your home and in turn get a legitimately higher appraisal – some are cheap and quick, others are more costly and time-consuming. Depending on your situation, some of these methods could definitely be an option if you are considering an appraisal for your home.


Make your home comfortable during the appraisal.
A quick search of tips for preparing for a home appraisal reveals one distinct commonality: put your pets away! Your pets might make the appraiser nervous or distract them, and the state of your home during an appraisal should be somewhat similar to that of an open house – fresh, clean and comfortable. Generally, pets are a no-no. You should also ensure your home is nice and cozy in the winter or cool in the summer, so the appraiser isn’t wondering if your a/c is broken.


Don’t let little things get in the way.
Homes are generally valued in $500 increments, which can add up (or bring you down). If there are small repairs that cost less than $500 to fix, try and repair them if they are in your budget. These small repairs can include fixing cracked windows, small structural damage or leaky faucets.

Prepare a list of improvements.
If you’ve owned your home for years, provide the appraiser with a list of improvements you’ve made over the last 15, including dates and their cost. The appraiser may not notice that you’ve insulated your roof or updated an old bathroom sink, so let them know.
Your list of improvements should not be limited to your home and property, either. Your neighbourhood has likely changed over the years – maybe there is a new playground, super market or recreation centre nearby that’s made the neighbourhood a great place to live.

Renovate wisely.
If you are planning on spending a bit of money to spruce up your home anyway, make sure you’re renovating where it counts. This home improvement investment return calculator from the Appraisal Institute of Canada will help you determine the renovations that will boost your home’s value the most.

Tidy your home.
Kid’s toys scattered about the floor is not going to affect the value of your home. But marked up walls, dirty carpets and other damage might, so give your home a good once-over before the appraisal.