What is an appraisal?
What happens during the appraisal process
A home appraisal is an unbiased estimate of the fair market value of a homes worth. The vast majority of lenders order an appraisal so that there is an objective way to assess the home’s market value and ensure that the amount of money requested by the borrower is appropriate. We typically allow 20 to 25 days for the appraisal to be completed and to receive the appraisal report back. The lender will have a list of approved appraisers that they will use to complete the appraisal. When the lender is getting ready to order the appraisal, they will typically send you a link to pay for the appraisal. Once completed, the appraisal will be scheduled. The appraiser will then go out to the property, assess pertinent information about the home such as age, square footage, and amenities such as granite counter tops, pools and lots of other factors about the home. They will also take pictures to be included in the appraisal report. The appraiser will also take into consideration current market conditions. Once the appraisal is completed, a report will be sent to the lender for review. If the appraisal of the property is at the agreed upon sales price or higher, than the buying process will continue. If the appraisal comes back at a lower price than the agreed upon sales price, you then have some options to consider as far as renegotiating the sales price, purchasing the property at the previously agreed upon sales price or backing out of the home purchase altogether.
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