mortgage after bankruptcy appraisal

Selling Your Home After Bankruptcy: How to Improve Your Current Property Value

The condition of one’s property plays a major role in whether a home loan after bankruptcy is attainable.  For many of our clients they are wanting to purchase a new home after their bankruptcy, but must first sell their current property. Often, those with a recent bankruptcy may have had to neglect the upkeep of their current home, in order to cover other more pressing expenses. As a result, you may be in a situation where you may not qualify for a home loan due to your current home’s value.  It is key that before you sell your house, that you get your property in the best condition possible before the home’s appraisal. We have some easy ways to help you improve your homes current value before selling your home after bankruptcy.

*Remember when relying on sites like Zillow.com & Trulia.com and their estimates’ of your home’s value, their estimates may not reflect the actual market conditions.  Selling your home after bankruptcy can be a stressful process, however we can help guide you along the way.


Tips on How to Improve Your Home’s Value:

De-clutter Your House

home loan after bankruptcy

Organize and clean out as much as possible. This shows pride of ownership, and will give the appraiser more confidence that you have properly maintained your home. Further, clutter can prohibit the appraiser from inspecting all of your property.  This minor accessibility issue, could require a second visit from the appraiser at your expense.


Deep Clean Your Home

home loan after bankruptcy

This goes back to pride of ownership in our first point. Hire a cleaning service to come in and deep clean before your appraiser comes.  This small investment can possibly yield a higher home evaluation from the appraiser.


Landscape to Improve Home Value

Curb appeal can help make your home look like the nicest property on the block. If you are unable to afford a landscaper, do the work on your own. At a minimum, make sure your grass is cut, trees/bushes are trimmed, and all debris/trash is removed. Search online to find DIY projects that can provide inspiration to improve your home’s curb appeal.  Improving the curb appeal for your home is one of the top ways to speed up the process of selling your home after bankruptcy.


Finish Small Projects:

home loan after bankruptcy

Unfinished projects can create safety and soundness issues in the appraiser’s eyes. These projects will have to be completed before closing anyway.  Therefore it is best to complete them before the appraiser makes a first inspection so that a second inspection is not required at the owner’s expense. This also includes repairing any holes in the dry wall.


Paint

mortgage after bankruptcy

Fresh paint is a relatively inexpensive way to make a home look well cared for. Appraisers will be looking for chipped paint inside and out.  They will often require you to remedy this issue.  This is a frequent follow up repair that most appraisers require based on our previous experience of our clients selling their house.


Appliances/Fixtures/Mechanical Systems

home loan after bankruptcy

Test your appliances, fixtures and mechanical systems to make sure they are working properly. Central heating and air, stove, toilets, sinks, etc.  Ensuring that these items are in good working order before your appraisal inspection should save you time and money.


What are the Main Factors that the Appraiser Will Review?

Value:

The value of your property is primarily determined by comparable properties (similar properties to yours in size, layout, amenities, location, etc) in your area that have closed in the last 6 months. Your property must have enough equity to qualify for the home loan after bankruptcy program, and terms for which you have applied.

Structure:

The structural integrity of your home is vital for safety and soundness, and will be one of the first items your appraiser inspects. If there appears to be continuing settlement, or issues with the foundation you will need to schedule a separate inspection by a home foundation specialist.

Safety, Soundness, and Security:

These are the three criteria which the appraisers will use when inspecting your property. They will look for defective conditions such as excessive dampness, leaks, decay, termites, environmental hazards, worn-out roofs, and other conditions affecting health and safety.  Any of these that are curable will be included in the appraisal inspection.  These defective conditions are “subject to” completion which means you must complete the repairs prior to closing on the home loan.

One’s property does not have to be in perfect condition to sell for your ideal amount. However, it is important to know what to expect, and put in some time to put your best foot forward. This can often be the difference between getting top dollar for selling your home after bankruptcy or having to apply for a larger home loan.


Published (August 31st, 2018)
Author: Robert Weaver