How important is an appraisal to a transaction and what impact does it have? Today, we’ll be covering some key points you need to understand.
A lot of people have been asking us to explain the appraisal process and its significance to real estate transactions in general, so today we’ll be covering some things you need to know.
The time an appraisal will be performed varies on your transaction. If there are any time constraints, the appraisal will likely be carried out right away. It can also be ordered after the inspection is over.
The expense of a home appraisal is counted as a closing cost, but it can be paid for in advance by the buyer when they take their loan application or their offer is accepted. For an average home, the cost of an appraisal will be between $450 to $550, but the complexity, size, and location of the property will all have an impact on this figure.
Buyers should feel reassured in knowing that their lender will be the one to order the appraisal. This protects buyers from overpaying for a property, since financing is contingent upon the home appraisal. Appraisers don’t take the sales price into consideration—they go off the home’s true value.
This means there is the possibility of a home’s appraisal coming in too low. If this is the case, the buyer and seller can negotiate a win-win situation.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.