When buying a house what happens after the appraisal?
After the appraisal of a house is completed, the next steps involved in the home-buying process can vary depending on the results of the appraisal.
If the appraisal comes in at or above the agreed-upon purchase price, the transaction can proceed as planned. However, if the appraisal comes in lower than the purchase price, it can complicate things.
In this case, the buyer and seller may need to renegotiate the purchase price, the buyer may need to come up with more cash to cover the difference, or the deal may fall through altogether.
Additionally, the lender may require repairs to be made before approving the loan if the appraisal identifies any issues that could affect the property’s value or safety.
1. What is a home appraisal?
A home appraisal is an assessment of a property’s value conducted by a licensed or certified appraiser.
2. Who pays for the appraisal?
Typically, the buyer is responsible for paying for the home appraisal as part of the closing costs.
3. How long does an appraisal take?
An average home appraisal typically takes anywhere from a few days to a week to complete.
4. What happens if the appraisal comes in lower than the purchase price?
If the appraisal comes in lower than the purchase price, the buyer and seller may need to renegotiate the price, the buyer may need to come up with more cash, or the deal may fall through.
5. Can a buyer challenge an appraisal?
Buyers can challenge an appraisal, but it is a complex and potentially lengthy process that may not always result in a change to the appraised value.
6. Can the seller request a second appraisal?
While sellers cannot directly request a second appraisal, they can work with their real estate agent to explore options if they believe the first appraisal was inaccurate.
7. Can the appraisal amount be changed after it is completed?
Once the home appraisal is completed and the appraiser issues the report, the appraised value is typically considered final unless there are circumstances that warrant a challenge.
8. What documents are needed for a home appraisal?
Documents such as recent tax assessments, property surveys, building plans, and information on recent home improvements are typically provided to the appraiser to help determine the property’s value.
9. What factors can impact a home appraisal?
Factors that can impact a home appraisal include the property’s location, size, condition, age, upgrades, and recent sales of similar properties in the area.
10. Can the buyer choose the appraiser?
While buyers cannot choose the specific appraiser, they can ensure that the appraiser selected by the lender is qualified and unbiased.
11. How long is an appraisal report valid?
An appraisal report is typically valid for up to six months, but lenders may require a new appraisal if the report is outdated or if market conditions have significantly changed.
12. What happens if the appraisal value is higher than the purchase price?
If the appraisal value is higher than the purchase price, it can benefit the buyer by providing additional equity in the property or allowing them to reconsider their asking price with the seller.