My ________ told me I should. MYTHS Debunked.
I hear home owners relay the suggestions that they hear from other real estate professionals in their transaction on a regular basis. Some of them are very good, some are harmless, some are literally illegal. Today we take look at some common/dangerous ones.
"My loan officer told me I should tell you we need this to appraise at $xxx,xxx." - CRIMINAL
This is literally a crime.
Dodd Frank - Section 1472 § 129E. Appraisal independence requirements
(a) IN GENERAL.—It shall be unlawful, in extending credit or in providing any services for a consumer credit transaction secured by the principal dwelling of the consumer, to engage in any act or practice that violates appraisal independence as described in or pursuant to regulations prescribed under this section.
(3) seeking to influence an appraiser or otherwise to encourage a targeted value in order to facilitate the making or pricing of the transaction; and H. R. 4173—813
By the bank agent asking you to relay this information, they have attempted (intentionally or ignorantly) to convince you to commit a federal crime. Don't do it.
"My agent told me I need to leave the house for the appraisal." - MYTH
I occasionally show up early to an appointment and the homeowner is rushing to leave, telling me this. I simply inform them that "This is your home, you can do what you like, but that's not needed." While it may make my inspection a little easier to be able to take photos without someone present, its really not a an inconvenience to me at all. I'm not sure where this idea comes from, but you don't have to do anything in your house that you don't want to.
"My agent told me I should paint my house before selling." - Mostly good advice
If your home is a "turn key home" but has some dated or unique paint schemes, then this is probably good advice. The market expects a property that conforms to the market. If your property conforms with the exception of a bright pink bedroom, then this is likely to help your home sell faster... but not at a higher price point. You can't expect any return on the price of the paint on the market, BUT you may see higher interest in your property, and therefore the possibility of a higher price (market value does not always equal the price that is offered).
However, if your home is dated throughout, lip stick on the pig won't do much and will likely be a waste. The buyer pool for a home that is dated throughout plans to update the entire home, and likely repainting the entire home. Therefore, your paint is priced in as a waste.
If you want advice on the market value of your home, the only person legally allowed to give that advice is an appraiser. Feel free to reach out if you have questions.