After an appraisal is conducted, there are several important steps that follow to ensure that the process is completed successfully. The appraisal report is a critical document that provides valuable information about the property’s market value. However, getting the report itself is not the end of the road. There are several things that need to happen after the appraisal to move forward in the buying or selling process.
One of the most important things to do after the appraisal is to review the report carefully. This report will outline the appraiser’s findings, including details about the property’s condition, location, and comparable sales in the area. It will also include the appraiser’s final estimate of the property’s value.
Once you have reviewed the appraisal report, the next step is to determine how the appraisal affects the buying or selling process. If the appraised value is lower than the agreed-upon purchase price, the buyer may need to renegotiate with the seller or come up with additional funds. Conversely, if the appraised value is higher than the purchase price, the buyer may have more equity in the property than expected.
Another important step after the appraisal is to consider the possibility of a second opinion. If you believe that the initial appraisal was inaccurate or unfair, you may choose to hire another appraiser to provide a second opinion. This can be helpful in situations where the property is unique or where the initial appraiser may have overlooked key factors.
In addition to potentially seeking a second opinion, it is also important to discuss the appraisal results with your real estate agent or attorney. They can help you understand the implications of the appraisal and advise you on the best course of action moving forward. They may also be able to provide guidance on how to handle any discrepancies between the appraised value and the purchase price.
Finally, after the appraisal is complete, it is crucial to stay informed and engaged throughout the remainder of the buying or selling process. This may include negotiating repairs or modifications based on the appraisal report, securing financing, and preparing for the closing process.
FAQs
1. How long does an appraisal report take to complete?
An appraisal report typically takes a few days to a week to complete, depending on the complexity of the property and the availability of comparable sales data.
2. Can I challenge the results of an appraisal?
Yes, you can challenge the results of an appraisal by providing additional information or requesting a second opinion from another appraiser.
3. What factors can impact the appraised value of a property?
Factors that can impact the appraised value of a property include its location, size, condition, age, and recent comparable sales in the area.
4. Can the appraised value of a property be negotiated?
The appraised value of a property is determined by the appraiser based on objective criteria, so it is usually not negotiable. However, buyers and sellers can negotiate based on the appraisal results.
5. How much does an appraisal cost?
The cost of an appraisal can vary depending on the location and size of the property, but it typically ranges from a few hundred to a few thousand dollars.
6. What happens if the appraised value is lower than the purchase price?
If the appraised value is lower than the purchase price, the buyer may need to renegotiate with the seller or come up with additional funds to cover the difference.
7. Are there any ways to increase the appraised value of a property?
While you cannot directly influence the results of an appraisal, making improvements to the property or providing additional information to the appraiser can potentially increase the appraised value.
8. How often should a property be appraised?
A property is typically appraised when it is being bought, sold, refinanced, or used as collateral for a loan. It is not necessary to have a property appraised on a regular basis.
9. Can the seller see the appraisal report?
The seller is usually not entitled to see the buyer’s appraisal report. However, they may request a copy from the buyer or their agent.
10. What happens if the appraised value is higher than the purchase price?
If the appraised value is higher than the purchase price, the buyer may have more equity in the property than expected, which can be advantageous for financing purposes.
11. Can an appraisal be done without visiting the property?
While it is possible for an appraisal to be completed without visiting the property in some cases, it is generally more accurate for the appraiser to physically inspect the property.
12. How long is an appraisal report valid?
An appraisal report is typically valid for 30 to 120 days, depending on the lender’s requirements. After this period, a new appraisal may be required.