What happens after an appraisal?
After an appraisal, the appraiser will compile a report detailing the property’s value based on various factors such as location, size, condition, and comparable sales in the area. This report is typically submitted to the lender or client who ordered the appraisal to help determine the property’s fair market value for financing or other purposes.
FAQs about what happens after an appraisal:
1. How long does it take to receive the appraisal report?
Typically, the appraisal report is completed within a few days to a week after the appraiser conducts the appraisal inspection.
2. Who receives a copy of the appraisal report?
The appraisal report is usually sent to the lender or client who ordered the appraisal, but the homeowner or buyer may request a copy as well.
3. What happens if the appraisal comes back lower than the agreed-upon purchase price?
If the appraisal comes back lower than the agreed-upon purchase price, the buyer may have to renegotiate with the seller, come up with the difference in cash, or walk away from the deal.
4. Can a homeowner challenge the results of an appraisal?
Yes, a homeowner can challenge the results of an appraisal by providing evidence of errors or inaccuracies in the appraisal report.
5. What is the difference between an appraisal and a home inspection?
An appraisal determines the value of a property, while a home inspection assesses the condition of the property and identifies any potential issues.
6. Is an appraisal required for all home purchases?
An appraisal is typically required for mortgage financing, but cash buyers may choose to forgo an appraisal.
7. How much does an appraisal cost?
The cost of an appraisal varies depending on the location and size of the property, but it typically ranges from $300 to $500.
8. What factors affect the appraisal value of a property?
Factors that can affect the appraisal value of a property include the condition of the property, its location, recent sales of similar properties in the area, and any upgrades or renovations.
9. Can a homeowner improve their home’s appraisal value?
Yes, homeowners can improve their home’s appraisal value by making upgrades or renovations that increase the property’s appeal and market value.
10. How long is an appraisal valid for?
An appraisal is typically valid for 60-90 days, but lenders may require a new appraisal if the transaction does not close within that timeframe.
11. Can a seller be present during the appraisal?
While it’s not required, sellers can be present during the appraisal to provide any information or answer questions the appraiser may have.
12. What happens if the property doesn’t appraise for the full loan amount?
If the property doesn’t appraise for the full loan amount, the buyer may need to come up with additional funds to cover the difference or renegotiate with the seller.