The appraisal must be disclosed within a reasonable amount of time, typically within 30 days of receiving the completed appraisal report.
FAQs:
1. What is an appraisal?
An appraisal is an unbiased estimate of the value of a property conducted by a licensed or certified professional appraiser.
2. Why is it important to disclose an appraisal?
Disclosure of an appraisal is crucial in real estate transactions as it helps all parties involved understand the true value of the property.
3. Who typically pays for the appraisal?
In most cases, the buyer is responsible for paying for the appraisal as part of the closing costs.
4. Can a seller request a copy of the appraisal?
Yes, the seller can request a copy of the appraisal from the buyer or their lender.
5. What happens if the appraisal comes in lower than the agreed-upon purchase price?
If the appraisal comes in lower than the agreed-upon purchase price, the buyer may have to come up with the additional funds to cover the difference or renegotiate the price with the seller.
6. How is an appraisal different from an inspection?
An appraisal is an estimate of the property’s value, while an inspection is a thorough examination of the property’s condition.
7. Can a buyer use a previous appraisal for a new purchase?
A buyer may be able to use a previous appraisal for a new purchase, but it is ultimately up to the lender to accept it.
8. How long does an appraisal take to complete?
An appraisal can typically take a few days to a few weeks to complete, depending on the complexity of the property and market conditions.
9. What factors does an appraiser consider when determining the value of a property?
An appraiser considers factors such as the property’s location, size, condition, age, and recent sales of comparable properties in the area.
10. Can an appraisal be contested?
If a party believes that an appraisal is inaccurate, they can challenge it by providing additional evidence or data to support their claim.
11. What happens if a lender refuses to disclose the appraisal?
If a lender refuses to disclose the appraisal, the borrower may have legal options to obtain a copy under the Equal Credit Opportunity Act.
12. Can an appraisal be used for other purposes besides a real estate transaction?
Yes, an appraisal can be used for various purposes such as refinancing, estate planning, tax assessments, and insurance purposes.