There are many steps to be taken before buying or selling a home and as exciting as it is to buy and sell a home, there is a lot to consider! There are agents, lenders, brokers, appraisers, financers and many other players in the game of selling and buying a home– it might feel overwhelming!
Luckily, there are certain players, toward the end of a home buying or selling process, that come in to simply do the job for you. One of these players is an appraiser.
A home appraisal process occurs when a report or evaluation is performed on a home by a trained and licensed professional. This appraiser’s job is to objectively evaluate a home and ensure that the buyer, seller and mortgage lender are all getting a fair price for the home according to the market. The true value of the home will be assessed by the appraiser with certain criteria in mind.
We have listed some important home appraisal process steps for you to look over to know what to expect when the time comes to buy or sell a home.
What Is a Home Appraisal?
Often in the home selling and buying process there aren’t neutral parties. One party is usually wanting to go low or high as far as making money for the party they are representing. An appraiser, however, is a neutral party that is hired to process an unbiased report to evaluate the worth or value of a home in the market.
The neutral appraiser will work with both the buyer, seller and mortgage lender in order to ensure the true value is respected and catered to.
Can I hire an appraiser?
No. In many if not all residential transactions for home buying is chosen by a lender to give a level of independence and neutrality from the process. Your lender will appoint an appraiser in order to five a fair and professional estimate of the home.
Why does a lender appoint an appraiser?
Your lending company wants to protect their assets in the form of their money being lent to you when you buy a home. When a lender takes a look at the market value of a home and compares it to the listed price, they will want to base their loan off these circumstances.
Worst case scenario, if a buyer defaults on a home that isn’t properly evaluated, the lender won’t be able to have enough money or asset to cover the defaulted loan.
Do I pay for an appraiser?
Yes. Typically the buyer will pay for an appraisal which can run anywhere from $300-$400 according to statistics pulled from 2018. Of course, there are instances where this cost is negotiated, however, for the most part, the buyer will pay for an appraisal depending on the property type and conditions.
How does an appraiser come up with home value numbers?
There are quite a few conditions that an appraiser will evaluate in order to come up with a figure representing a fair and accurate number for a home. For one, they will evaluate square footage, appearance, amenities, location and overall condition.
A home appraisal process– how long does it take?
Typically an evaluation in its entirety takes anywhere from 3-10 business days.
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