How Long for Appraisal After Contract?
One of the key steps in the home buying process is getting an appraisal done on the property. An appraisal is an important evaluation done by a professional appraiser to determine the fair market value of the home. This valuation is crucial for securing a mortgage loan and ensuring that the lender is not lending more money than the property is worth. But how long does it take to get an appraisal done after the contract is signed?
The typical timeline for an appraisal after the contract is signed is around 1-2 weeks. However, this timeline can vary depending on several factors such as the availability of the appraiser, the complexity of the property, and the current demand for appraisals in the area.
FAQs:
1. What is the purpose of an appraisal?
An appraisal is done to determine the fair market value of a property. This valuation is important for both buyers and lenders to ensure that the property is worth the asking price.
2. Who orders the appraisal?
Typically, the lender orders the appraisal to ensure that the property is worth the amount being lent. However, the buyer is usually responsible for covering the cost of the appraisal.
3. Can the buyer choose the appraiser?
In most cases, the lender will choose the appraiser to ensure an unbiased and accurate valuation of the property. However, some lenders may allow the buyer to choose from a list of approved appraisers.
4. What happens if the appraisal comes back lower than the contract price?
If the appraisal comes back lower than the contract price, the buyer and seller will need to negotiate a new price based on the appraised value. The buyer may also need to come up with additional funds to cover the difference, or the deal may fall through.
5. Are there any ways to speed up the appraisal process?
While the appraisal process typically takes 1-2 weeks, buyers can help speed up the process by ensuring that the property is easily accessible to the appraiser and providing any necessary documentation promptly.
6. What factors can delay the appraisal process?
Factors that can delay the appraisal process include a high demand for appraisals in the area, a shortage of qualified appraisers, and the complexity of the property being appraised.
7. Can buyers be present during the appraisal?
While it is not required for buyers to be present during the appraisal, some appraisers may allow buyers to be present to answer any questions they may have about the property.
8. How long is an appraisal valid for?
An appraisal is typically valid for around 90 days. If the appraisal expires before closing, the lender may require a new appraisal to ensure the property’s value has not changed.
9. What if the seller disagrees with the appraisal?
If the seller disagrees with the appraisal, they may request a second appraisal or provide additional documentation to support their asking price. However, the lender has the final say in the property’s value.
10. Can appraisals be contested?
If a buyer or seller believes that the appraisal is inaccurate, they may contest the appraisal by providing additional information or requesting a review of the appraisal report. However, the success rate of contesting an appraisal is typically low.
11. Are appraisals required for all types of properties?
While appraisals are typically required for most types of residential properties, they may not be required for certain types of loans or properties with a low loan-to-value ratio.
12. How much does an appraisal cost?
The cost of an appraisal typically ranges from $300 to $500, depending on the location and size of the property. Buyers are usually responsible for covering the cost of the appraisal, which is paid at the time of the appraisal.