Buying a New Home: What to Expect During the Appraisal Process
The home-buying process is full of other processes. From the pre-qualification process to the home shopping process to the inspection process to the closing process, and many more in between, it’s a lot to keep track of. With the help of a knowledgeable, professional REALTOR®, you can successfully navigate each and every one of these processes, ending up in a home that is perfect for you. However, it is still helpful to know what to expect. One of the most important and least familiar processes is the appraisal. Here is what you can expect during the appraisal.
The appraisal is the official determination of a home’s value. Based on the condition, square footage, location, and other factors like the current real estate market in an area, an unbiased, trained appraiser will provide a value of the property.
It’s important to know that the appraiser works for the lender. It is in their best interest to have the most accurate estimation of the home’s monetary value to ensure that the mortgage makes sense. With this in mind, the appraiser will look closely at areas like the home’s foundation, roof, plumbing, appliances, electrical system, and more. Once the evaluation is complete, the appraiser will return the full report to your lender; by law, they are then required to provide you with a copy.
While the appraiser is there on the lender’s behalf, they also serve an important role in protecting you as the buyer. If the appraisal comes back with a value lower than the asking price it can prevent you from making a bad deal.
Having the expertise of REALTOR® on your side can help tremendously, not only during the appraisal process but throughout the entire homebuying experience.
