Importance of an Appraiser
When you’re buying a house, there are two sides to the story: the seller’s asking price and the actual value of the property. This is where an appraiser comes in.
What is the job of an appraiser? An appraiser’s job is to determine the current market value of a property. Most of the work is done on-site where the appraiser will:
-Conduct a room-by-room walk-through to determine the interior condition.
-Walk the length of the property to determine the exterior condition.
-Evaluate the amenities such as a swimming pool, finished basement, or built-in bar.
-Note any health or safety code violations.
-Record the layout of the property.
Off-site, the appraiser will evaluate the current real estate market in the neighborhood to help determine the value of the property.
How do you know if an appraiser is qualified?
Typically, the lender will choose the appraiser. The appraiser should be state-licensed. If the appraiser is a member of a professional organization such as the Appraisal Foundation, he or she most likely will adhere to strict ethics codes and rules of conduct. However, not all states require certification, so do some research if you are ordering the appraisal yourself.
Who hires the appraiser?
Usually, the lender or mortgage company will hire the appraiser. Because it’s in the best interest for the lender to get a good appraisal, the lender will most likely have a list of reputable appraisers whom they have hired in the past.
The loan agreement normally contains a set cost for the appraisal of property. Whoever takes out the loan pays for the appraisal, unless the purchase agreement specifies otherwise. Then the buyer pays the appraisal fee as part of the closing costs. If a seller is motivated, they may pay for the appraisal themselves, which benefits the buyer by reducing closing costs. The lender may not adjust the fee after hiring the appraiser. Expect an average range of $300 to $600 depending on the size of the home, property value, and location. Different appraisal report types take various amounts of effort, which may also affect the price.
How long does it take?
One hour is the average time spent inspecting the property for most appraisals. You should most likely receive the report in seven business days on average. The amount of time it ultimately takes depends on the type of report, size of property, and other factors.
What are the benefits?
Think of the appraisal as an investment of your time, money, and effort. It is important to know what your house is worth, and it is required in most cases to get your loan approval. Hopefully, this step as well as the rest of the home-buying process will go smoothly.
If you are in the market for a new house and would like information on homes for sale, or are first time home buyer not working with a Realtor and would like to schedule a consultation with a qualified Oakland County and Macomb County Realtor, please complete the Lang Premier Properties contact form to have a real estate agent contact you. Lang Premier Properties are Clawson Realtors specializing in Oakland County Real Estate. Stephanie is an agent with Lang Premier Properties. See what past clients have to say about Stephanie Lang. Lang Premier Properties looks out for your best interests when you purchase a new custom luxury home. We always recommend working with an experienced luxury real estate agent when buying new luxury estate.