You can never downplay the essence of leveraging an appraisal during the homebuying expedition. In the event that your home appraisal comes in lower than expected, rest in knowing it can cost you money and delay, or worse, the entire transaction.
That’s why you should take it upon yourself to understand what a home appraisal entails. It doesn’t end with that since you need to know How long does appraisal report take. Equipped with this information, rest assured you’ll have an easy time during the homebuying process.
Well, a home appraisal is an objective, professional assessment to determine how much a home or property is valued at. When selling or buying a home, an appraisal helps verify that the sale price of the home is in line with fair market value. In this way, they homebuyer doesn’t have to overpay for the house, and the mortgage lender doesn’t lend more than it is orth.
Things are not any different when a homeowner is refinancing their mortgage. After all, the lender will have the home appraised to confirm its market value before extending a new loan. No wonder it is worth your attention when planning to sale or buy a home.
So, how do home appraisals work? Once an order from a lender has been received, a licensed appraiser will have to make an appointment to visit the property in-person or simply perform the appraisal remotely.
Aside from the physical assessment of the home, the appraiser also analyzes recent sales of comparable home’s in the area. This information is mostly collected from a variety of sources, such as the local multiple listing service, local real estate agents, and tax records.
The appraiser will also factor in the neighborhood surrounding the home. A newer property in a growing subdivision might appraise higher compared to an old home in a community that is in decline, for example.
As for the appraisal timeline it depends on the seller’s availability, the property’s complexity, and the appraiser’s schedule. Not to mention the sheer fact that it also varies depending on location.
