The typical time frame for an appraisal to come back is around 7-10 business days. However, it can vary depending on various factors such as the appraiser’s workload, the complexity of the property, and the availability of comparable sales data.
An appraisal is an essential part of the real estate process, as it helps to determine the market value of a property. Whether you’re buying or selling a home, getting an appraisal is crucial. Here are some frequently asked questions related to the appraisal process:
1. What is an appraisal?
An appraisal is an unbiased estimate of a property’s fair market value, conducted by a licensed appraiser. It is used to determine how much a property is worth.
2. Why do I need an appraisal?
An appraisal is necessary for lenders to ensure that the property being financed is worth the amount of the loan. It also helps sellers to set a realistic asking price and buyers to make informed decisions.
3. Who orders the appraisal?
In most cases, the lender orders the appraisal as part of the mortgage application process. However, buyers or sellers can also request an appraisal for their own purposes.
4. How is the appraised value determined?
The appraiser considers various factors such as the property’s size, condition, location, and recent sales of comparable properties in the area to determine the appraised value.
5. Can I influence the appraisal value?
No, as an appraisal is an independent evaluation of a property’s worth based on objective criteria. Attempting to influence the appraiser’s judgment is considered unethical and could lead to legal consequences.
6. What happens if the appraisal comes back lower than the agreed-upon price?
If the appraisal value is lower than the agreed-upon price, the buyer may have to come up with the difference in cash, renegotiate the price with the seller, or walk away from the deal.
7. Can I challenge the appraisal if I disagree with the value?
Yes, you can challenge the appraisal if you believe there are errors or inaccuracies in the report. Providing additional information or recent sales data to the appraiser can help support your case.
8. How much does an appraisal cost?
The cost of an appraisal varies depending on the size and location of the property, ranging from $300 to $600 on average. The buyer or seller is typically responsible for covering the appraisal fee.
9. Do appraisals expire?
Yes, most appraisals are valid for a certain period, usually around 30-120 days, depending on the lender’s policies. If the appraisal expires before closing, a new appraisal may be required.
10. Can I use a previous appraisal for a new mortgage application?
In some cases, a previous appraisal may be used if it meets certain criteria, such as being recent and conducted by a reputable appraiser. However, lenders may still require a new appraisal to ensure accuracy.
11. What should I do to prepare for an appraisal?
To ensure a smooth appraisal process, clean and declutter your property, make necessary repairs, provide access to all areas of the property, and gather any relevant documents or information that may be requested by the appraiser.
12. How long is the appraisal report valid for?
The appraisal report is typically valid for a specific period, usually around 30-90 days, depending on the lender’s policies. If the report expires before closing, a new appraisal may be required.
In conclusion, while the process of getting an appraisal can be time-consuming, it is a crucial step in buying or selling a property. Understanding the appraisal process and its timeline can help you navigate the real estate transaction more smoothly. Remember that the appraisal is just one piece of the puzzle when it comes to determining a property’s value.