Who gets appraisal; buyer or seller?
The answer to the question “Who gets appraisal; buyer or seller?” is that traditionally the buyer pays for the appraisal. However, it ultimately depends on the specific circumstances of the real estate transaction and can be negotiated between the buyer and seller.
An appraisal is an important part of the home buying process as it determines the fair market value of the property. Appraisals are typically conducted by a licensed appraiser who evaluates the property based on factors such as location, size, condition, and comparable sales in the area.
Here are some commonly asked questions related to appraisals in real estate:
1. What is a home appraisal?
A home appraisal is an unbiased estimate of the fair market value of a property conducted by a licensed appraiser.
2. Why is a home appraisal necessary?
A home appraisal is necessary to ensure that the property’s value is in line with the purchase price, as well as to protect the lender’s investment.
3. Who orders the home appraisal?
Typically, the buyer’s lender orders the home appraisal as part of the mortgage approval process.
4. How much does a home appraisal cost?
The cost of a home appraisal can vary depending on the location and complexity of the property, but it usually ranges from $300 to $500.
5. How long does a home appraisal take?
A home appraisal can take anywhere from a few days to a few weeks, depending on the availability of the appraiser and the complexity of the property.
6. Can a seller request an appraisal?
While sellers can request an appraisal, it is more common for the buyer or lender to order the appraisal.
7. What happens if the appraisal comes in lower than the purchase price?
If the appraisal comes in lower than the purchase price, the buyer may have to renegotiate with the seller or come up with additional funds to cover the difference.
8. Can a buyer challenge a low appraisal?
Buyers can challenge a low appraisal by providing additional evidence or information to the appraiser, but there is no guarantee that the appraisal will be changed.
9. What factors can influence a home appraisal?
Factors that can influence a home appraisal include the property’s location, size, condition, recent renovations, and comparable sales in the area.
10. How long is a home appraisal valid?
A home appraisal is typically valid for up to six months, but some lenders may require a new appraisal if the transaction is delayed.
11. Can a home appraisal be transferred to a new buyer?
A home appraisal is usually tied to a specific buyer and lender, so it cannot be transferred to a new buyer.
12. How can buyers and sellers prepare for a home appraisal?
Buyers and sellers can prepare for a home appraisal by ensuring the property is clean and well-maintained, providing the appraiser with accurate information, and being present during the appraisal to answer any questions.
In conclusion, while the buyer typically pays for the home appraisal, both buyers and sellers should understand the importance of the appraisal process and be prepared for any potential outcomes. It is essential to work with a knowledgeable real estate agent or lender to navigate the appraisal process successfully.