Buying A House Appraisal
It will take the appraiser an average of seven to 10 days to look at the property, complete the research process, prepare the appraisal report and deliver it.The appraiser will visit the property and spend an hour or two inspecting the interior and exterior, measuring the square footage, and evaluating the home's features and fixtures.Additional research will include a comparison of other similar homes that have been sold recently (known as "comps").After doing the physical inspection and running the comps, the appraiser writes an appraisal report. The amount of time it takes for the entire process depends on the complexity of the appraisal and the appraiser's workload or schedule."}},"@type": "Question","name": "What Does a Home Appraisal Cost?","acceptedAnswer": "@type": "Answer","text": "Home appraisals typically cost between $300 and $450. The home's location, size, and condition factor into the cost. Appraisers may work on a flat fee or hourly basis.If the appraiser expects to be paid a percentage of the home's value, it signals an unethical practice and should be avoided.","@type": "Question","name": "What Happens After the Appraisal?","acceptedAnswer": "@type": "Answer","text": "If all goes well, the appraisal gets slipped into the pile of paperwork and the closing process takes one step forward.The next step is mortgage underwriting. The underwriter reviews the entire loan file to make sure everything is in order and that all the required documents have been submitted.The underwriter then assesses the risk associated with the loan and either denies or approves the loan based on all of the information submitted.","@type": "Question","name": "What Lowers a Home Appraisal?","acceptedAnswer": "@type": "Answer","text": "The home's location has the biggest impact on the valuation. The value will be negatively impacted if the home is in an undesirable neighborhood or situated next to a junkyard, power lines, or a busy street. The value will be higher if it's on a pretty, well-tended street and close (but not too close) to a good supermarket.You can't change the property's location, but you can positively influence other factors in a home appraisal. For instance, you can spruce up your curb appeal, make sure the house is clean and tidy, and take care of any light repairs, cosmetic issues, and routine maintenance items.Theoretically, a messy house shouldn't have the least effect on a home appraisal. But appraisers are human, too. They may be affected, if only unconsciously, by clutter and dust."]}]}] Investing Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All Simulator Login / Portfolio Trade Research My Games Leaderboard Economy Government Policy Monetary Policy Fiscal Policy View All Personal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All News Markets Companies Earnings Economy Crypto Personal Finance Government View All Reviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All Academy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All TradeSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.InvestingInvesting Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All SimulatorSimulator Login / Portfolio Trade Research My Games Leaderboard EconomyEconomy Government Policy Monetary Policy Fiscal Policy View All Personal FinancePersonal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All NewsNews Markets Companies Earnings Economy Crypto Personal Finance Government View All ReviewsReviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All AcademyAcademy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All Financial Terms Newsletter About Us Follow Us Facebook Instagram LinkedIn TikTok Twitter YouTube Table of ContentsExpandTable of ContentsWhat Is a Home Appraisal?The Appraisal ProcessWhat Is in an Appraisal Report?What Homebuyers Need to Know About AppraisalsWhat Home Sellers Need to Know About AppraisalsAdvice for Refinancing HomeownersFrequently Asked QuestionsHome Appraisal FAQsThe Bottom LineMortgageBuying a HomeWhat Is a Home Appraisal?Must-Have Information for Buyers, Sellers, and Refinancers
buying a house appraisal
Mortgage lending discrimination is illegal. If you think you've been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take. One such step is to file a report to the Consumer Financial Protection Bureau (CFPB) or with the U.S. Department of Housing and Urban Development (HUD). Note that the home appraisal process is also subject to bias. Push back if you think your home's price has been unfairly devalued.
After doing the physical inspection and running the comps, the appraiser writes an appraisal report. The amount of time it takes for the entire process depends on the complexity of the appraisal and the appraiser's workload or schedule.
You can't change the property's location, but you can positively influence other factors in a home appraisal. For instance, you can spruce up your curb appeal, make sure the house is clean and tidy, and take care of any light repairs, cosmetic issues, and routine maintenance items.
The appraisal takes place as early as possible after the two parties agree on a price, to allow enough time to schedule a property visit and production of the report. A lender will select a home appraiser who will contact the seller to set a time and date for a home visit.
Appraisal visits for government-backed loans can differ from those for conventional loans. For example, an appraiser who is compiling a report for an FHA-backed loan needs to test utilities and appliances to make sure they are in working order, per government rules. VA loans have a similar list of requirements for an appraisal.
Concerns about the coronavirus have changed the appraisal process, at least temporarily. For example, the appraiser might be allowed to do an alternative appraisal, which could rely on an exterior inspection combined with photos and/or videos of the interior of the home from the seller.
Home sellers can possibly increase the value of their home appraisal by giving the property appraiser information about notable property improvements, including a new roof, updated siding, recently purchased furnace or air conditioner unit or an addition.
A buyer will typically put down an earnest money deposit before an appraisal is done. If there is an appraisal contingency in the contract and sale falls through because the house appraises below the sales price, the buyer will get their earnest money back."}},"@type": "Question","name": "Do you always need an appraisal when buying a home?","acceptedAnswer": "@type": "Answer","text": "If you are taking out a mortgage, your lender will want an appraisal to protect its investment. If you are making a cash offer, you can choose not to get an appraisal, but you may end up paying more than the property is worth if you skip it.","@type": "Question","name": "Is an inspection the same thing as an appraisal?","acceptedAnswer": "@type": "Answer","text": "A home inspection and a home appraisal are not the same thing. An appraisal is an assessment of the value of the home, while an inspection looks at the condition of the home. A home-buying contract may have contingencies that allows the buyer to back out based on the results of either the appraisal or the inspection."]}]}] .cls-1fill:#999.cls-6fill:#6d6e71 Skip to contentThe BalanceSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.BudgetingBudgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps View All InvestingInvesting Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps View All MortgagesMortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates View All EconomicsEconomics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy View All BankingBanking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates View All Small BusinessSmall Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success View All Career PlanningCareer Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes View All MoreMore Credit Cards Insurance Taxes Credit Reports & Scores Loans Personal Stories About UsAbout Us The Balance Financial Review Board Diversity & Inclusion Pledge View All Follow Us
Budgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps Investing Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps Mortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates Economics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy Banking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates Small Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success Career Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes More Credit Cards Insurance Taxes Credit Reports & Scores Loans Financial Terms Dictionary About Us The Balance Financial Review Board Diversity & Inclusion Pledge Mortgages & Home Loans Homeowner GuideHome Appraisals: What They Are and How the Process WorksByShashank ShekharShashank Shekhar Twitter Shashank Shekhar is an expert on mortgages who worked with GE Consumer Finance and a venture-capital-funded mortgage start-up in senior management positions before starting his own mortgage company, Arcus Lending, Inc. He holds an MBA and is the author of "First Time Home Buying 101."learn about our editorial policiesUpdated on January 14, 2022Reviewed byDoretha ClemonIn This ArticleView AllIn This ArticleWhy Lenders Want an AppraisalHow the Appraisal Process WorksUsing Comps to Know Market ValueLow Appraisals and LoansDealing With a Low AppraisalFrequently Asked Questions (FAQs) Photo: Zero Creatives/Getty ImagesWhether you're buying or selling a home, one critical step of the process is the home appraisal. As a buyer, a key part of getting a mortgage is having an appraisal performed to confirm the sales price for the lender. For sellers, a good appraisal is important to secure the best price possible for the house. 041b061a72