The Appraisal Process

appraisalWhen purchasing a property with a new loan, the lender will require the home to be appraised to determine fair market value, and that the sales price is warranted. A licensed appraiser will be assigned to complete the appraisal and will begin researching nearby houses that have sold in the last 6 months and are similar to the home being purchased in size, age, style, construction and amenities.

The appraiser will visit the property and will take 30 minutes to an hour to look the property over.  The appraiser will measure the home to determine square footage and draw out the floor plan, take photographs both inside and out and review the home’s overall condition, upgrades, and amenities.

The appraiser will provide the buyer’s lender an appraisal within a few days of visiting the home.  If the appraiser has recommended repairs to the property, these repairs must be completed and re-inspected by the appraiser before the loan process can be completed.

 

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