If you want to make an unofficial assessment, then objectivity is key. The evaluation process takes an average of seven to 10 days. The appraiser visits the property and spends an hour or two inspecting the interior and exterior of the home, measuring square footage and evaluating the features and fixtures of the home. The appraiser also compares the home to other similar homes recently sold in the neighborhood (also known as comps).
After performing the physical inspection and executing the compensations, the appraiser writes an evaluation report. The amount of time the entire process takes depends on the complexity of the assessment and the evaluator's workload or schedule. You can't hire your appraiser to do that. When deciding whether to lend you money, your lender will only consider the appraisal you receive from the appraiser you hire.
However, you'll have to pay for this appraisal, whether your real estate purchase goes through or falls apart. There may come a time when we need a home appraisal, perhaps for a home equity loan or line of credit. If we do, I'll treat it as an accurate home valuation and adjust the value of our home in the spreadsheet. Depending on the market and the home itself, the buyer may request that the seller pay the appraisal during negotiations.
That's why many homeowners turn to sites like Zillow or Redfin, among other automated valuation (AVM) models to predict their current home valuation estimate. This is by no means a complete checklist of repairs, but it does provide a good idea of common problems that a home appraiser can check. While you can't change the location of the property, you can do something about other factors that could lower the home appraisal. While real estate agents tend to have a fairly clear idea of what the market will endure, steep declines in home values in recent years have thrown a lot of uncertainty into the process, so getting an assessment from a professional appraiser can be helpful.
Since lenders can't give more money than a home is worth, a low appraisal presents challenges for buyers who rely on mortgage financing. Since most banks and lenders don't provide loans for more than the appraised value of a home, you'll want your appraiser's valuation to be as high as possible. If you're a buyer, owner, or seller, you'll want to understand how the appraisal process works and how an appraiser determines the value of a home. While you can compare multiple sites to get a better idea of an average, or use a lender-rated MAV, you can also calculate the numbers yourself to determine the appraised value of your home.
In a refinance transaction, an appraisal assures the lender that you are not giving the borrower more money than the home is worth. If you think the value of your home has been reduced by the sale price of nearby foreclosures and short sales, you may be able to convince the appraiser that your home is worth more if it is in significantly better condition than those properties. According to the Appraisal Institute, an association of professional real estate appraisers, a qualified appraiser must have the required license or certification in all 50 states and be familiar with the local area. When all goes well, the home appraisal is just another box to check on a closing checklist.
When selling your home, you want your home to be taxed for the same amount or more than what the buyer has agreed to pay.