Home Appraisals FAQ for Home Sellers
1. What is a home appraisal?
A home appraisal is an unbiased assessment of your home’s market value, conducted by a licensed appraiser. It’s a key step for buyers and lenders to ensure the property is worth the amount of money being loaned.
2. Why is an appraisal necessary when selling my home?
Appraisals protect both the buyer and the lender by confirming the home’s market value matches the price. If the appraisal comes in lower than the sale price, the buyer’s loan may not be approved for the full amount, which could impact your sale.
3. How is the appraisal value determined?
Appraisers evaluate factors such as your home’s size, condition, location, recent sales of similar properties in the area (called “comparables”), and any upgrades or improvements you’ve made. They follow strict guidelines to ensure accuracy and fairness.
4. Can I do anything to influence the appraisal?
While you can’t directly control the appraisal, making sure your home is clean, well-maintained, and addressing any necessary repairs can positively impact the appraiser’s perception. Providing a list of recent upgrades or improvements can also be helpful.
5. What happens if my home appraises for less than the sale price?
If the appraisal comes in low, several options exist: you can lower your asking price, the buyer may increase their down payment, or both parties can negotiate a middle ground. Alternatively, the buyer can challenge the appraisal or walk away, depending on contingencies in the contract.
6. How long does the appraisal process take?
The appraisal itself usually takes about an hour to complete, depending on your home’s size. The final report typically arrives within 3-7 days after the appraiser’s visit.
7. How much does a home appraisal cost, and who pays for it?
Appraisal fees typically range from $300 to $600, depending on your location and the size of your home. The buyer usually pays for the appraisal as part of their mortgage process, but this can sometimes be negotiated in the contract.
8. Can I appeal a low appraisal?
Yes, you or the buyer can request a reconsideration of value if you believe the appraisal is inaccurate. You’ll need to provide additional information, such as overlooked comparables, but it’s up to the lender to decide if a second appraisal is warranted.
9. What is the difference between an appraisal and an inspection?
An appraisal assesses the value of the home, while a home inspection evaluates its condition. Inspections focus on identifying potential issues or repairs, whereas appraisals determine how much the property is worth.
10. Does the appraiser consider my home’s listing price?
No, the appraiser is independent of the listing process. They solely base their valuation on market data, the condition of your home, and comparable properties, regardless of your listing price or sales agreement.
Having an understanding of the appraisal process can help you feel more prepared and informed when selling your home.
