When buying a house, the appraisal is typically done after the seller accepts your offer and before the mortgage lender finalizes the loan. This is an important step in the home buying process as it determines the fair market value of the property.
What is a home appraisal?
A home appraisal is an unbiased estimate of the true market value of a property conducted by a licensed or certified appraiser.
Why is a home appraisal important?
A home appraisal is important because it helps ensure that the property is worth the amount of money being borrowed to purchase it.
Who pays for the home appraisal?
In most cases, the buyer pays for the home appraisal as part of the closing costs.
What happens if the home doesn’t appraise for the purchase price?
If the home doesn’t appraise for the purchase price, the buyer may need to either renegotiate the price with the seller or come up with the difference in cash.
Can a home appraisal be contested?
If a buyer or seller disagrees with the results of a home appraisal, they may request a reconsideration or a second opinion from the appraisal management company.
How long does a home appraisal take?
A home appraisal typically takes about a week to complete, but the timeline can vary depending on factors such as the property’s location and size.
What factors does an appraiser consider during a home appraisal?
An appraiser considers factors such as the property’s size, condition, location, comparable sales in the area, and any improvements or additions made to the property.
Can I choose my own appraiser?
In most cases, the mortgage lender selects the appraiser to ensure impartiality. However, some lenders may allow you to choose from a list of approved appraisers.
What happens if the home’s appraisal comes in higher than the purchase price?
If the home’s appraisal comes in higher than the purchase price, it can benefit the buyer by providing instant equity in the property.
What if the home appraisal comes in lower than the purchase price?
If the home’s appraisal comes in lower than the purchase price, the buyer may have to renegotiate with the seller or come up with additional funds to cover the difference.
Are there different types of home appraisals?
Yes, there are different types of home appraisals, including drive-by appraisals, desktop appraisals, and full appraisals depending on the level of detail required.
Is a home inspection the same as a home appraisal?
No, a home inspection is different from a home appraisal. A home inspection evaluates the condition of the property, while a home appraisal determines its market value.
Can I use a previous appraisal when buying a house?
In some cases, a previous home appraisal can be used if it is recent and meets the lender’s requirements. However, the lender may still require a new appraisal to be conducted.