How Long Does a Buyer Have to Get an Appraisal?
The process of purchasing a home involves several important steps, one of which is getting an appraisal. An appraisal is an evaluation of the property’s value by a licensed appraiser to ensure that the property is worth the amount of money being borrowed for the mortgage. But how long does a buyer have to get an appraisal?
**Typically, a buyer has around 10-14 days from the signing of the purchase agreement to get an appraisal done.**
Getting an appraisal within this timeframe is crucial for both the buyer and the lender, as it can affect the loan approval process and the finalization of the purchase contract. If the appraisal comes back lower than the agreed-upon purchase price, it could potentially jeopardize the transaction or require renegotiation.
FAQs:
1. Is an appraisal the same as a home inspection?
No, an appraisal is an assessment of the property’s value, while a home inspection focuses on the condition of the property’s structure and systems.
2. Who typically pays for the appraisal?
The buyer is usually responsible for paying for the appraisal, although sometimes the seller may cover the cost.
3. What happens if the appraisal comes back lower than the purchase price?
If the appraisal is lower than the agreed-upon purchase price, the buyer and seller may need to renegotiate the terms of the contract.
4. Can a buyer waive the appraisal contingency?
Yes, a buyer can choose to waive the appraisal contingency, but this is risky as it means the buyer is willing to purchase the property regardless of the appraised value.
5. What factors influence the appraised value of a property?
Factors that can influence the appraised value of a property include the property’s location, size, condition, and recent sales of comparable properties in the area.
6. Can a buyer choose their own appraiser?
In some cases, a buyer may be able to choose their own appraiser, but the appraiser must still be a licensed professional approved by the lender.
7. How long does the appraisal process typically take?
The appraisal process usually takes a few days to a week to complete, depending on the appraiser’s schedule and the complexity of the property.
8. Can the lender order a second appraisal if they are not satisfied with the first one?
Yes, the lender has the right to order a second appraisal if they are not satisfied with the results of the first one.
9. What happens if the property appraises for more than the purchase price?
If the property appraises for more than the purchase price, it can benefit the buyer by providing instant equity in the property.
10. Can an appraisal be contested or appealed?
If a buyer or seller believes an appraisal is inaccurate, they can request a review of the appraisal or provide additional information to support their case.
11. What if the appraisal value is significantly lower than expected?
If the appraisal value is significantly lower than expected, the buyer may need to come up with additional funds to cover the shortfall or renegotiate the purchase price with the seller.
12. Is an appraisal required for all types of home loans?
While most mortgage lenders require an appraisal for conventional loans, some government-backed loans may have different appraisal requirements. It’s important to check with your lender to see what is required for your specific loan.