When you are considering buying a home, there are two sides to the story: the seller’s asking price and the actual value of the property. This where the appraiser’s role comes into place.
What is the job of an appraiser?
An appraiser’s job is to determine the current value of a property. Most of the work is often done on-site where the appraiser will:
- Conduct a room-by-room walkthrough to determine the condition of the interior.
- Walk the length of the property to determine the condition of the exterior.
- Evaluate any amenities the home has such as a swimming pool, a finished basement, etc.
- Note health or safety code violations
- Record the layout of the property
Once the appraiser’s work is done on-site, he will evaluate the current real estate market in the neighborhood to help determine to value of the property.
How do you know of the appraiser is qualified?
Typically, your lender will choose an appraiser. The appraiser should be state-licensed or have a certification similar to that. If the appraiser that is chosen is a member of a professional organization, he or she will likely adhere to certain ethics codes and rules of conduct.
Who hires the appraiser?
Usually the lender or financial organization will hire the appraiser. It’s in the best interest for the lender to get a good appraisal, therefore the lender will have a list of reputable appraisers that they have used in the past.
The loan agreement normally contains a set value for the appraisal of property. Typically whoever takes out the loan pays for the appraisal, then the buyer pays the fee in the closing costs. Sometimes the seller may pay for the appraisal to back his asking price, which benefits the buyer by reducing the closing costs. Expect an average price range of $300 to $600 depending on the size, property value, and location of your home. Different appraisal reports take various amounts of effort, which may affect the price.
How long does it take?
One or two hours is the average amount of time spent for appraisals. After the appraisal, you should receive the report in three to seven business days on average. The amount of time it takes is depended on the the type of report,the size of the property, and other factors.
What are the benefits of an appraisal?
The appraisal is an investment of your time, money, and effort. It is important to know the value of your home, and it will help you get approval on your loan. The step of getting an appraisal will make the rest of the home-buying process go smoothly.
For more information about appraisals click here.