The appraisal process usually starts once your loan officer requests the appraisal and payment is made.
A single-family home appraisal typically costs anywhere from $450 to $800.
The cost depends on the home’s size and the property type.
After the appraisal request has been assigned to an appraiser, the following steps take place:
1. Assessment of property
An appraiser will visit the home to review the house’s condition, take measurements to verify the square footage, and take photographs for the report.
2. Review of comparable sales
The appraiser will try to find recent sales of similar properties sold close to the neighborhood using the MLS system.
MLS is the same system that real estate agents use to find houses for sale.
The recent comparables are what help the appraiser determine the market value.
3. Appraisal report
An appraisal report will be provided with the home’s market value, including photos and information on comparable sales.
The mortgage underwriter will review this report and confirm that the home’s value is acceptable for the loan.
Appraisal Related Info:
- What happens if the appraisal comes in low?
- Difference between an appraisal and home inspection
- What is an appraisal contingency?
How long does it take to receive the appraisal?
The answer is it depends. It can take anywhere from a few days to 2 weeks.
However, when the real estate market is busy, it can take as long as 4 weeks due to the need for more appraisers.
Is an appraisal required?
When buying a home, lenders require an appraisal to determine the market value and ensure you aren’t overpaying for the property.
Why is it required?
Because lenders need to know how much the property is worth to provide financing.
An appraisal ensures you aren’t overpaying for a home, and the lender isn’t financing a home loan for more than the value.
Are you ready to apply? Start the process by completing the form below.