Understanding Scheduled Appraisals
An appraisal is a critical component of the home buying process, whether you are a buyer or seller. It provides an impartial evaluation of a property’s market value to ensure that the price being paid is fair and reasonable. But what exactly is a scheduled appraisal?
What is a scheduled appraisal?
A scheduled appraisal is a pre-planned evaluation of a property’s market value by a licensed appraiser. This type of appraisal is typically ordered by a lender to assess the property’s worth before approving a mortgage loan.
FAQs about Scheduled Appraisals
1. What is the purpose of a scheduled appraisal?
The main purpose of a scheduled appraisal is to determine the fair market value of a property. This ensures that the lender is not lending more money than the property is worth.
2. Who typically orders a scheduled appraisal?
Lenders usually order scheduled appraisals to protect their investment in the property. However, buyers or sellers may also request an appraisal to ensure a fair transaction.
3. How is the market value of a property determined during a scheduled appraisal?
An appraiser will use various methods to determine the market value of a property, including comparable sales in the area, the condition of the property, and any unique features that may affect its worth.
4. How long does a scheduled appraisal take?
The duration of a scheduled appraisal can vary depending on the size and complexity of the property. On average, an appraisal can take anywhere from a few days to a few weeks to complete.
5. What happens if the scheduled appraisal comes in lower than the purchase price?
If the scheduled appraisal comes in lower than the purchase price, it can complicate the home buying process. The buyer may need to renegotiate the price with the seller or come up with additional funds to cover the difference.
6. Can a seller request a copy of the scheduled appraisal?
While the buyer is typically the one who orders and pays for the appraisal, the seller is entitled to a copy of the appraisal report if they request it. This can help sellers understand the reasoning behind the appraised value.
7. Are there any situations where a scheduled appraisal is not required?
In some cases, if the buyer is paying cash for a property, a lender may not require a scheduled appraisal. However, it is still recommended for buyers to conduct an appraisal to ensure they are paying a fair price.
8. Can a scheduled appraisal be waived?
In certain circumstances, such as in a competitive real estate market where multiple buyers are vying for a property, a scheduled appraisal may be waived. However, this is not common practice and can put the buyer at risk of overpaying for a property.
9. Can a homeowner appeal the results of a scheduled appraisal?
If a homeowner believes that the results of a scheduled appraisal are inaccurate, they may appeal the appraisal with their lender. Providing additional evidence or comparable sales data may help support the appeal.
10. Can a scheduled appraisal impact property taxes?
A scheduled appraisal can indirectly impact property taxes by influencing the assessed value of a property. If the appraised value of a property increases, the property taxes may also increase.
11. What qualifications do appraisers have to conduct scheduled appraisals?
Appraisers must be licensed or certified by their state’s real estate appraisal board to conduct scheduled appraisals. They undergo rigorous training and education to ensure they have the necessary skills to determine a property’s market value accurately.
12. How much does a scheduled appraisal cost?
The cost of a scheduled appraisal can vary depending on the location of the property, the size and complexity of the property, and the appraiser’s experience. On average, a scheduled appraisal can cost anywhere from $300 to $500.