What You Should Know About Real Estate Appraisals
Before a lender will loan funds for the purchase of a property, the lender requires professional valuation of the property by licensed appraiser. The appraisal is necessary to support the value of the property for the dollar amount of the buyers down payment plus the loan amount which equals the agreed upon purchase price.
I will meet the appraiser at the property for the approximately one hour appointment. I will have researched and present to the appraiser documentation of three sold homes and one or two pending homes. Experience shows that this helps alleviate low appraisals.
The appraiser will take measurements and notes regarding the property condition and the amenities plus photos of each of the rooms. The exterior of the property will also be evaluated and photographed. Then the appraiser will travel to and take photos of the exterior and consider the amenities of comparable sold properties within a half mile to one mile of the home. And they will also consider one or two pending sale properties.
All of this information is gathered into a concise report and sent to the lender for further evaluation by the loan underwriter. The underwriter will then review all the information prior to determining full loan approval for the buyer.
The cost is a buyer expense between $450 and $600 and is paid in advanced by the buyer.
And experience shows that a typical appraisal evaluation report is completed within one to two weeks from the time that is ordered.