Home Appraisal FAQ
Upcoming SlideShare
Loading in...5
×
 

Home Appraisal FAQ

on

  • 54 views

Frequently Asked Questions regarding Home Appraisal

Frequently Asked Questions regarding Home Appraisal

Statistics

Views

Total Views
54
Views on SlideShare
54
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Home Appraisal FAQ Home Appraisal FAQ Presentation Transcript

  • Home Appraisal FAQ
  • 1. What is a property appraisal? 2. What does an appraiser do? 3. Do lenders choose the property appraiser? 4. How much does a mortgage appraisal cost? 5. Who pays for the property appraisal? 6. I’m refinancing. Do I need another appraisal? 7. How long does it take to complete a mortgage appraisal? 8. Can an appraisal serve as a home inspection? 9. What is an independent appraisal? Copyright 2013, LessThan6Percent Table of Contents 2
  • *Source: National Association of Realtors. Home Buyer/Seller Profile 2012 FAQ 1 What is a property appraisal? A property appraisal is an unbiased estimate of the true value of a property at a single point in time. It is conducted by a licensed, certified professional. When buying a home, an appraisal can confirm whether the property is worth the amount you are paying. Copyright 2013, LessThan6Percent 3
  • *Source: National Association of Realtors. Home Buyer/Seller Profile 2012 FAQ 2 What does an appraiser do? An appraiser provides an estimate of the value of a property by looking at the location, amenities and recent sales (or comps) of similar properties in the same neighborhood. The inspection often includes a walk-through to determine the general condition of the property and note any amenities of value in that area. Often, the appraiser will photograph or sketch the property’s layout. If there are any health or safety code violations, the appraiser will list them so they can be corrected before the lender approves a loan. Copyright 2013, LessThan6Percent 4
  • *Source: National Association of Realtors. Home Buyer/Seller Profile 2012 FAQ 3 Do lenders choose the property appraiser? Usually, the lender will choose the property appraiser, but you are entitled to see the results. Keep in mind that lenders and broker’s agents are not allowed to “up charge” for third party services. Most lenders require a professional appraisal to determine the current market value of a property before they approve a mortgage loan. Copyright 2013, LessThan6Percent 5
  • *Source: National Association of Realtors. Home Buyer/Seller Profile 2012 FAQ 4 How much does a mortgage appraisal cost? Appraisals range from $350 to $600 depending on the size and value of the property. Prices vary depending on region, type of appraisal report requested and the amount of effort required to complete the report. Drive-by appraisals and updates to existing reports are usually under $275, however lenders are not likely to approve a loan based solely on a drive-by appraisal. Copyright 2013, LessThan6Percent 6
  • *Source: National Association of Realtors. Home Buyer/Seller Profile 2012 FAQ 5 Who pays for the property appraisal? The buyer typically pays the fee as part of the total closing costs. If you are a motivated seller, you could order and pay for a professional appraisal to support the price you are asking and reduce the buyer’s closing costs. Copyright 2013, LessThan6Percent 7
  • *Source: National Association of Realtors. Home Buyer/Seller Profile 2012 FAQ 6 I’m refinancing. Do I need another appraisal? Yes, but if you are refinancing and the property has been appraised within the past three years, some lenders will be ok with a “drive-by” appraisal as opposed to a full appraisal, saving you money. Copyright 2013, LessThan6Percent 8
  • *Source: National Association of Realtors. Home Buyer/Seller Profile 2012 FAQ 7 How long does it take to complete a mortgage appraisal? 3-7 business days. Copyright 2013, LessThan6Percent 9
  • *Source: National Association of Realtors. Home Buyer/Seller Profile 2012 FAQ 8 Can an appraisal serve as a home inspection? No, an appraisal is not a home inspection. Inspections involve a licensed home inspector or contractor who evaluates the structure and mechanical systems (heating, plumbing, air-conditioning, etc.) of a house, from foundation to rooftop. The appraiser is typically more interested in sales prices (within the past six months) of comparable homes in the neighborhood, the exterior presentation of the property and amenities that enhance the value in that market. Copyright 2013, LessThan6Percent 10
  • *Source: National Association of Realtors. Home Buyer/Seller Profile 2012 FAQ 9 What is an independent appraisal? An estimate of the value of a property that is prepared by an appraiser who has no interest in the property and nothing to gain from a high or low appraisal. Copyright 2013, LessThan6Percent 11