During the selling/buying process, after the purchase agreement contract is signed, lenders order a home appraisal.  They want to be sure that the property is worth the mortgage they are getting ready to issue to the buyer, or in case of refinancing, the owner.  An appraisal is different from the home inspection, which should have already taken place.   

 

  • - The lender typically schedules the appraisal with a licensed professional, who contacts the homeowner to schedule a time.  Some appraisers don’t mind the owner being present, but usually work alone. 
     

  • - Sellers should have a few things readily available:  recent tax information, property survey, a list of what is being sold with the house, any addition construction information, including cost and construction date. 
     

  • - The assessment can begin before the appraiser even steps onto the property, as they do market information about the house, as well as research comparable sales in the neighborhood, much like the listing agent did for setting the price for the house. 
     

  • - Like someone viewing the house for purchase, the appraiser takes in the exterior appearance, curb appeal, looks for upgrades or additions, as well as the appearance of surrounding homes. 
     

  • - The appraiser takes note of how many rooms are in the house, as well as size, building materials and finishes. 
     

  • - Condition of everything is taken into consideration, including the foundation, exterior finishes, wear on flooring, what shape the windows are in, and all home systems. 
     

  • - The appraiser will also access the basement, attic and crawlspace to check for water or insect damage. 
     

  • - Most of the time, the appraisal fee is set in the loan agreement, but in case it is not, the buyer pays the fee in the closing costs. 

 

Although the actual property inspection may take a few hours, the appraisal itself is normally given to the lender in an average of seven business days. Appraisers commonly use the Uniform Residential Appraisal Report. If everyone has done their homework, literally and figuratively, the value of the home will meet the selling price, and the new buyers will soon be on their way to home ownership! 
 

Courtesy of Chester County PA Realtor Scott Darling.

Photo credit: thebalance.com