Buying a home can be stressful. A home appraisal may feel like a nerve-
racking process but it’s actually there to ensure an easier transaction. The goal of a home appraisal is to ascertain the market value of a home.
What Is A Home Appraisal?
A home appraisal is a process where an objective expert thoroughly
assesses a home that is up for sale. The two goals are to check the quality of
the home and assess its value.
Home Appraisals Impact:
BUYERS
A home appraisal ensures that you’re paying what a home is really worth.
SELLERS
A home appraisal may change what you can sell your home for or spark a
renegotiation of terms.
Home appraisals are done by an objective and impartial professional. Most
commonly, a lender will oversee this process and use a third-party appraisal
management company.
Did You Know?
The standards for home appraisals are actually set by congress through the
Uniform Standards of Professional Appraisal Practice.
Stages In The Home Appraisal Process
Home appraisals are important. It takes a few steps to get through one.
1. Lender orders appraisal
2. Licensed appraiser is hired.
3. Borrower pays for appraisal (typically included in closing)
4. Home value is determined.
5. Home value report is issued.
HOW TO PREPARE FOR A HOME APPRAISAL?
Here are a few ways sellers and buyers should prepare for a home appraisal.
SELLER PREP
Clean the home
Conduct basic repairs and painting
Be off-premises when the appraisal is being conducted
Have all relevant docs on hand, including permits if you’ve renovated
BUYER PREP
Discuss with your realtor and other stakeholders:
What will you do if the home appraises under listing price?
What will you do if the home appraises over asking price?
Did You Know:
You Can Order A Pre-listing Appraisal? This May Lock In Your
Sale Price And Expedite Things Down The Road.
A Buyer Is Not Committed To Paying The Appraised Value Of
A Home For Sale. It Will Change The Logistics Of Your Financing.
5 TIPS FOR HOME APPRAISALS
As a buyer or seller, going into a home appraisal with the right expectations
is valuable.
Here are five tips to know what you’re in for.
1. Understand what features can change the home value.
For instance, a home appraiser will take square footage, utilities, renovations and even the age of home into account before making their
declaration.
2. Know the value of similar homes.
This should come into play whether you are listing or looking. Comps factor into a home appraisal.
3. It will take at least a week.
Depending on availability of people, permits and more could impact the turnaround time for a home appraisal.
4. Know your options.
Home appraisals may come in higher or lower than listing price. You
should discuss your options with your realtor to know what your
negotiation and price difference options are.
5. Ordering independent appraisals.
Not happy with the results? Question the outcome of an appraisal? Buyers or sellers can ask for a reevaluation of an appraisal or order an
independent appraisal.
Prepare to buy or sell on the market or in the market? Reach out!