I’ve been getting a lot of questions about appraisals today, so I wanted to drop by and answer a few of the most common ones. Appraisals are important to many different parties. For lenders, appraisals let them know how much they can lend on a home. For buyers, it lets them know they aren’t overpaying for a home. Here are a few of the most common appraisal questions we get and our answers to them:
1. How does the appraisal process work? After you go under contract, you’ll order an appraisal. This will likely be handled by your lender, who will hire a third-party company to come in and get the appraisal done before the deadline on the contract. For sellers, there’s not much you have to do for an appraisal. The main thing to keep in mind is that the price of the home needs to agree with what the appraiser sees. This can be a little difficult to do.
2. How does the appraisal affect a buyer? For one, a lender won’t lend on a property that is priced higher than its appraised value. If the appraisal comes in at value or even a little over what you paid, we’re perfectly fine and can proceed to closing. If it comes in under value, this is where I come in to negotiate on your behalf to help get that price down.
3. How does the appraisal affect a seller? It only affects sellers if the appraisal comes in low. If that happens, you’ll have to either reduce your price or risk letting the deal fall apart. It’s my job to make sure you’re priced right in the first place so you won’t run into any of these issues.
If you have any questions for us about the appraisal process or anything related to real estate, give me a call or send me an email. I look forward to hearing from you soon.