Getting an appraisal is important because it will help a lender determine the amount you can borrow for a property. It may also protect you from paying more than the house is worth. There are certain factors that a lender takes into consideration in determining the value of a home.
For one, the appraiser will look at “comps,” or comparable homes in the area and what they have sold for in the past, as well as the location and if it is in a desirable area. An appraiser will also consider the condition of the home and note significant upgrades or renovations, number of rooms, windows and closets.
To prepare for an appraisal, focus on both the interior and exterior. For the exterior, you’ll want to make sure that the landscaping is neat and well maintained. You’ll also want to make sure there are no visible signs of peeling paint on the home. For the interior, make sure that the furnace, air conditioner, electrical and plumbing are all in working order. Depending on the appraiser and the condition and size of your home, the appraisal can take anywhere from 25 to 45 minutes to complete.
Although the home appraisal may seem similar to the home inspection, the goals of these two services are very different. While the appraiser determines the value of the house, the inspector determines any repairs needed, and their potential cost. If you have opted for a home inspection and the RE-10 (a document your agent provides) is agreed to by both the buyer and the seller, the appraisal will be ordered on your new home. We are required by federal law to order your appraisal through a third-party vendor. We do not know who the appraiser will be, but our vendor uses licensed, reputable appraisers. The typical turn time for an appraisal is a 7-10 calendar days.
Team Mandi loves helping people achieve the dream of homeownership and reaching their individual financial goals.