Congratulations! You’ve been pre-approved for a home mortgage, found your dream home, negotiated a good sales price, and successfully passed home inspection process. You now have a fully executed new home sales contract.
The next step is to get a home appraisal.
Whenever you get a loan from a mortgage lender, you’ll need a home appraisal. The assessment process can get bumpy at times, but it’s an important part of the process Home buying process.
if you are a first time home buyers, you may not realize how many steps there are until you get into it. It helps to prepare for the evaluation process and know in advance how long it will take. So whether you are looking for houston home or you are dealing with Buy a house in Bostonhere’s everything you need to know about assessments, from what they’re assessed to how long they take.
What is an assessment?
A Home Appraisal is an unbiased estimate the value of your home Performed by a licensed real estate appraiser. Here’s why you might need one:
- First, your mortgage lender Assessment may be required. By providing an estimate of your home’s fair market value, the appraisal assures the lender that they will not lend more on the property than it is worth.
- An appraisal can also protect you by proving that you didn’t pay more than you should have for the home.
How long does a home appraisal take?
The on-site inspection portion of the home evaluation usually takes approximately 1-3 hours. Some assessment inspections take less than an hour. arrive Preparing your home for an appraisalbe sure to tidy up the interior space and do your best to enhance the beauty of the house curb appeal.
After an appraiser visits a property, they look at comparable home sales in the area. They include these properties and everything they discovered during the physical inspection into the appraisal report.
Assessments may take longer depending on the assessor’s workload and current circumstances real estate market in your area. The size and complexity of the property will also affect the appraisal timeline.
For example, inspecting 6,000 square feet and preparing a report typically takes longer Homes in Dallas, Texas Over 1,500 sq. ft. Homes in Seattle, Washington.
How long does it take to get the appraisal report back?
The time it takes to receive an estimate may vary based on a variety of factors. Typically, it can last anywhere from a few days to three weeks. The assessor’s workload, the complexity of the report, and the timing of your request all have an impact. If your appraised value drops during peak home buying season, expect to wait longer.
Who ordered the assessment and when?
Once the home inspection is completed and repairs negotiated, your mortgage company or lender will typically order an appraisal.
Buyer pays for appraisal. this Home Appraisal Cost Typically between $300 and $400, depending on the size and complexity of the property. It can be more expensive for larger or more complex properties. this home inspection cost It is separate from the evaluation.
The buyer is usually not present on the day of the appraisal. The seller can be present, but their real estate agent will usually be involved. This way, the agent can answer any questions that come up when the appraiser inspects the property.
Once the assessment process is complete, you’ll be ready to proceed title company and closing on your new home.
What happens during the assessment?
During this period Home Valuation Process, an appraiser visits the home and inspects it thoroughly. They take the time to inspect the exterior of the home and the lot, then go inside to look inside.
They gather all the information they need to complete their tasks Uniform Residential Assessment Report. This detailed form includes the dimensions of the lot and of every room in the home. They will also take photos of every room, the exterior of the home, and the yard.
This is What appraisers look for When preparing a report:
Property condition
Homes are often valued lower when there are tell-tale signs structural issues or damaged. The appraiser will check for the following things:
- Roof and foundation condition
- Condition of walls, ceilings and floors
- Construction quality and building materials
- Structural integrity (the ability of the house to withstand its own weight)
Measurements and Characteristics
Next, the appraiser will note the dimensions and features of the home, including its location. This includes:
- House age
- square feet
- Number of bedrooms and bathrooms
- How does the layout function?
- recent decorationupdate or repair
- Heating and cooling systems
- Includes electrical appliances
- Home page location
- Surrounding areas (including nearby schools)
Comparable sales
Once the appraiser has the information they need, they’ll use real estate software to see how properties that have sold nearby recently compare to yours. These are comparable sales, sometimes called “comparables” or “real estate comparison” in short.
An appraiser will typically perform an appraisal within a quarter-mile or half-mile radius of your home. If the homes in your neighborhood are far apart, they may use a mile or more.
Appraisers will examine similar properties such as their age, square footage, overall condition, number of bedrooms and bathrooms, location of the home in the neighborhood, and more.
The appraiser will use comparable sales as well as previous inspection records to determine the fair market value of the property. They will then complete the appraisal report and forward it to your lender, allowing you to move forward shutdown process.
3 possible outcomes of a home appraisal
When the final report comes out, the estimated value can be in one of three ways:
1. The appraised price is lower than the agreed price
Let’s say you agree to pay $450,000 for a home, but the appraisal shows the home is only worth $440,000. You have several options:
- Request an appraisal review. Different licensed appraisers prepare independent reports using the same elements of the appraisal. The reviewers then comment on the accuracy of the first assessment.
- Offer to pay the difference. You can pay an additional $10,000 Closing costs Make up the difference between the appraised value and the agreed price. Some Closing costs are tax deductible.
- Ask the seller to lower the purchase price. If the seller agrees, they will lower the price by $10,000, bringing it to $440,000.
- Compromise with the seller. You can try to meet the seller halfway. For example, you might be willing to pay $5,000 in closing costs and ask the seller to lower the sale price by $5,000. This will make up the entire $10,000 difference.
- Go away. If you sign a Assess unexpected events If an agreement still cannot be reached, you can withdraw the offer without penalty. This is often a last resort for homebuyers, as it may mean they have to start their home search from scratch.
2. The estimated price is higher than the agreed price
Good news, you just purchased a home with some equity built into it.
In this example, we’re again using a $450,000 home, but the property has an appraised value of $460,000. In this case, you already have $10,000 worth of equity before you even make your first payment.
If the appraisal comes back higher than expected, the seller can’t ask for more money, so the home sale can proceed as planned.
3. The evaluation results are consistent with the agreed price
Sometimes the appraised home value is exactly the same as the agreed-upon purchase price. This means the buyer, seller and lender are all satisfied and the buying process can proceed without additional negotiations.
Home Appraisal FAQs
Why does my assessment take so long?
Waiting for an appraisal report can be frustrating, especially if the wait takes longer than expected. This can happen for several reasons:
- Larger homes allow appraisers to consider more things during the appraisal process. In some cases, you may need to wait for an appraiser who is qualified to appraise that particular property.
- Sometimes appraisers are busy completing other projects, so it takes them longer to complete your appraisal. Job shortages may also occur in certain areas due to high demand or a lack of qualified appraisers.
Any of these situations can impact the final assessment timeline.
How long does it take to schedule an assessment?
You can usually schedule an evaluation within a day or two of ordering. As with other parts of the home buying process, labor shortages and appraiser workloads may impact availability.
