Here are some critical facts about appraisals every seller should know.
Do you have questions about appraisals? I’ve received many questions about this topic recently, and that’s very understandable. It can be a confusing topic, but I am here to clear up some important details.
An appraisal is when the lender hires an appraiser to assess the value of a property. There may be rare instances when an appraisal waiver is granted, but in most cases, an appraisal is required.
As the market has shifted and property values have leveled off, appraisals have become more significant. Appraisers typically spend 10 to 20 minutes at a property, taking measurements and assessing the overall condition. They look for major issues like a collapsing roof or flooding but do not evaluate the property as thoroughly as an inspector would.
The appraiser then takes pictures, verifies the square footage, and reports the property’s value to the lender. You cannot hire your own appraiser, as the lender must choose them. If the appraisal value is lower than expected, you can dispute it by providing additional comparables as evidence. This process can be intensive and may not always work, but it’s worth trying.
Some people consider getting a pre-appraisal before listing their home, especially if the property is unique. While you cannot use this appraisal for the bank, it could give you a ballpark idea of the value and potentially help the appraiser.
If you have further questions about appraisals or need assistance with the process, feel free to call or email me. If you are thinking of selling your home and are concerned about its value, my team and I can provide a free market analysis to help you understand your property’s value in the current market. We look forward to hearing from you.
