An appraisal has a short lifespan because market conditions change. Home sales from 6 months ago might be drastically different from those in more recent months, especially if the real estate market is volatile. These tend to include:. Appraisers can order any inspections they feel are necessary, such as a roof, pest or water inspection, if there are signs of potential issues.
You can expect the appraiser to look at these things when they inspect the inside of the home:. Keep in mind the appraiser will not consider moveable objects in their assessment. There are also certain rooms the appraiser may exclude from their measurement of livable space or bedroom count. For example, basements and garages are typically not included in the square footage of the home and a room must have a closet and window to be considered a bedroom. FHA home appraisals are slightly different.
This impacts both the buyer and the seller, because the home loan process absolutely cannot progress until a few repair items are completed. Like FHA appraisals, VA home appraisal inspections have their own standards for acceptable home conditions. In addition to the standard, conditional loan appraisal requirements, VA home appraisals will require:. Just like FHA or conventional home appraisals, any repairs or safety or health concerns will slow down and possibly put a halt to the home buying process until they are addressed by either the buyer or seller.
A home appraisal must be completed by a VA-certified appraiser, assigned by the Department of Veterans Affairs. In addition to checking the exterior and interior condition of the home, the appraiser will also look for anything needing repairs.
Here are some areas to consider addressing before your appraisal:. This is by no means a complete checklist of repairs that might need to be addressed before a home appraisal. It is, however, a list of the most common issues that may arise either before or during the appraisal inspection. In fact, the overall appearance of your home can affect the final appraisal value. If the appearance of the home makes the appraiser feel welcome, comfortable or any other positive emotion, they may actually subconsciously put a higher value on the home.
To avoid the latter, follow these tips for improving the appearance of your home before an appraisal:. An appraisal can make or break a home sale. It can move you to the next step in the home buying process or take you back to the negotiation table. When the appraisal comes back higher than expected, it greatly benefits the home buyer. And, since the lender will be loaning at or less than what the home is worth, the process can continue toward the closing table.
The seller will not be made aware if the home appraised for higher than the asking price. The seller will only know the results of the home appraisal if it comes in lower than expected, because it could affect the sale of the home.
A low appraisal can prevent the loan from moving forward or slow down the process because the lender cannot lend more money than the home is worth. This can be a problem if any of the parties involved are relying on mortgage financing. Sometimes, people make home renovations that they think will increase the value of their home.
A pool is a great example of this. In other instances, the pool could actually make it harder to sell your home or decrease the value because potential buyers see it as more of a burden than a luxury. After your home appraisal is complete, the appraiser will assign a monetary value to the property based on the findings in the inspection and comparables in your area, and then send their findings to the mortgage lender.
This is unfortunate for the seller if they have the home listed at a higher price, as the lower home appraisal will affect their chances of getting that amount on the sale of their property. No lender is involved when you're buying a home with cash, so no appraisal is required. But you might want to get an appraisal anyway to ensure you don't pay more than the property is worth.
In that case, you'd hire the appraiser and pay the fee. When you're buying a home , the lender will order the appraisal after you've made an offer and signed a purchase agreement.
When refinancing a mortgage, the lender will order the appraisal after you apply. You can ask to accompany the appraiser on the walk-through of the property as long as it's OK with the lender, according to the Appraisal Institute, a professional association of real estate appraisers. Real estate appraisers consider many details to determine a home's value.
The appraiser will do market research and usually visit the home to examine the property. Here are some of the factors they take into account:. Sale prices of comparable homes recently sold in the area. Types of interior and exterior materials. Amenities, such as fireplaces or decks.
Both an appraisal and a home inspection are important in the homebuying process , but they serve different purposes. A home inspection is for evaluating a home's condition. The inspector walks through and checks the structure from top to bottom, including the walls, ceilings, floors, windows and doors, as well as the mechanical and electrical systems, appliances and plumbing.
After looking at everything, the inspector provides an objective report, including repair recommendations. An appraisal is an assessment of home value. The appraiser considers the home's condition as part of the analysis of how much the property is worth, as well as other factors, such as the local housing market.
The appraiser doesn't make recommendations for repairs. As the mortgage borrower, you have a right to a free copy of the appraisal report at least three days before the loan closes.
It's a good idea to read the report to check for accuracy. Let the lender know if you find errors and think the estimated value is wrong. Any pertinent information you provide could lead the appraiser to reevaluate. You may also ask the lender for a second appraisal. Read on to learn exactly how an appraisal helps both the buyer and seller.
What Is An Appraisal? What Does An Appraiser Do? Take the first step toward the right mortgage. Apply online for expert recommendations with real interest rates and payments. Appraisal Amount Vs. Explore the meaning of home with our new podcast, Home. New episodes every other week. Follow and listen for free on your favorite podcast player. Sales Price Unlike the listing price, the house appraised value may not be what sellers are asking for their home. The cleaner it is, the more the great elements of the home will pop out to an appraiser.
Double-check items that leave a first impression of your home. This could include the paint on the walls, handrails, railings on decks, plumbing, roof leaks and cracks in the walls, ceiling or foundation. Check on water intrusion anywhere in the home, particularly in the foundation.
Make known repairs before an appraiser arrives. If you know the roof has some leaking issues or the basement is in need of repair, make those repairs ahead of time. Organize receipts and take photos of any renovations or improvements. Get A Second Opinion You can dispute the appraisal.
Renegotiate The Sales Price You can also go back to the seller and ask them to lower the sale price if the appraisal comes back low. Keep Your Eye On The House If a deal falls through, homeowners might have a hard time getting higher offers from other buyers. What Is An Appraisal Contingency? Here are some common questions home buyers are also asking: Can the seller back out if the appraised value is too high?
Do sellers usually lower their asking price if the appraised value is lower? The Bottom Line Understanding what a high or low home appraisal means for both the buyer and seller can help you when evaluating potential homes.
See What You Qualify For. Related Resources. Home Buying - 3-minute read Katie Ziraldo - October 21, How long a home appraisal takes can vary, but in general they can take from 2 days to a week.
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