Common Appraisal Questions
March 16, 2022 | Posted by: Sherry Corbitt
You may need to get an appraisal done during your mortgage process. This is a condition that the lender will require. If you are in the mortgage process and need an appraisal done, you may have some questions. This blog will discuss common questions that many people ask when having an appraisal.
What is an Appraisal?
Before we begin answering questions about an appraisal, it is essential to know precisely what it is. A home appraisal is an evaluation that a professional appraiser does to get market value. The appraiser will evaluate the house's different factors, and with their gathered information, they can determine the accurate market value.
Question: How do I find out if I need an appraisal?
Answer: If your lender requires an appraisal for your mortgage, they will notify your mortgage broker, who will inform you. They will let you know all of the appraisal details and what they will require from you.
Question: How much does an appraisal cost?
Answer: An appraisal will vary in its cost. Deciding factors include the location, property size, and type of mortgage. An appraisal can cost anywhere between $200 to $800, yet most appraisals will be around $450.
Question: Do I need to pay for the appraisal costs?
Answer: In most cases, you will need to cover the appraisal cost. Yet depending on what type of mortgage you have, you may have the option to get your mortgage broker to protect them. Speak with your broker to see if you apply. If you do, your mortgage broker can cover these appraisal costs.
Question: How long is the appraisal process
Answer: Between a few days to a few weeks
This answer is not concrete since it will differ with every client. Depending on your mortgage and how far away your closing date is, it can be longer or shorter. If you have a mortgage closing within a shorter time, you can be sure that the appraisal will be completed sooner than a more extended mortgage closing.
Question: How is the appraisal set up
Answer: Your mortgage broker will find an appraiser who the lender approves. Your broker will try to find an appraiser close by in your area, which will help get your appraisal accepted. Once an appraiser agrees with the offer, they will contact you to book an appointment at the property.
Question: What property factors do appraisers look at to determine the market value?
Answer: During an appraisal, appraisers will look at several things to determine the property's accurate value. This includes the house structure, the interior, the space, and special features, such as a pool or fire patio. Appraisers will also examine similar properties in the area and compare the values. For example, if recent renovations have been done to the property, this will undoubtedly raise the value.
Question: Are there ways that I can prepare for the appraisal?
Answer: You most likely will schedule the appraisal within a few days to a couple of weeks. This does not give you much time to make any significant improvements to the property. If you want to make minor improvements, try aiming for minor property adjustments. Doing a few small things may not make a huge difference, yet it can improve the appraisal.
Question: Can I get a copy of the appraisal report?
Answer: Once the appraisal is done, the appraiser will have a full report completed on the property. You will not get a copy of the report until after the closing date. If you do want to have a copy of it after the closing, though, make sure to reach out to your mortgage broker. They will be happy to get a copy from the lender and send it to you.
These are the most common questions our clients have when needing an appraisal. If you happen to have any other questions that were not touched on within this blog, please reach out to us and we will be happy to answer them!
Sherry Corbitt, Mortgage Broker
Sources
-My Real Page (2020). How to Answer 10 Common Seller Appraisal Questions. Retrieved from https://myrealpage.com/answer-10-common-seller-appraisal-questions/
