The most important step you can take to prepare for an appraisal is to include an appraisal contingency in the contract offer, so that if the home you are buying is not taxed for the amount offered by the contract, you are financially protected and can withdraw the offer of the home. From the seller to the buyer, an experienced real estate appraiser is an essential part of the overall homebuying process. While an accurate appraisal ensures that lenders don't borrow more than necessary, it also prevents novice buyers from overpaying when buying their dream home. Find the exact value of your home The assessed value of your home is basically an accurate and unbiased value.
If you think that the value of your home has been reduced by the sale of foreclosures and close short sales, you may be able to convince the appraiser that your home is worth more. 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. 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. The appraiser will visit the property and spend an hour or two inspecting the interior and exterior, measuring square footage, and evaluating the features and accessories of the house.
In short, an experienced and well-versed appraiser helps ensure that you get an accurate appraisal value and that none of the parties involved have to deal with the repercussions of an inadequate price. Why an appraisal matters Regardless of whether you are the borrower, the seller, or the lender, the appraisal of your building is an essential part of the process. Appraisals can help buyers avoid overpaying for homes, but the seller may consider a low appraisal to be inaccurate and reluctant to lower the price. With the arrival of the HVCC, I shouted from the rooftops that the appraisers were having a holiday worthy of a Hallmark card, Appraiser's Independence Day.
You can't change the location of the property, but you can positively influence other factors in the valuation of a home. The amount of time the entire process takes depends on the complexity of the evaluation and the appraiser's workload or schedule. It will take an average of seven to 10 days for the appraiser to examine the property, complete the investigation process, prepare the appraisal report and deliver it. When refinancing a mortgage, if the appraised value places the net value of your home at less than 20%, you'll need to pay private mortgage insurance (PMI).
Since the appraisal primarily protects the lender's interests, the lender will normally order the appraisal to be performed. If the appraiser expects to be paid a percentage of the home's value, this indicates an unethical practice and should be avoided.