You’ve listed your home, found the perfect buyer and accepted their offer. Now, all that’s left is the closing, and you’ll have the freedom to start shopping for your next home. But before both you and the buyer can sign on the dotted line, there’s one important step that can’t be overlooked.
It’s the home appraisal, and the lender won’t allow the buyer to close on the home without it being done. In case you aren’t familiar, this guide explains what home appraisals are, how they work and possible delays you could face. You’ll also discover an easy way to sell your home fast, minus all the hiccups.
Submit an online application form to inquire about Angel Oak Mortgage Solutions financing options.
Buy a home or refinance your existing mortgage with Zero Mortgage.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
What Is a Home Appraisal?
A home appraisal is required by the lender to determine the fair market value of the property you plan to purchase. It helps ensure the purchase price is fair and that the lender isn’t extending a loan for more than the home is worth.
How Long Do Home Appraisals Take?
It generally takes two or three days to a week for a home appraisal to be completed. However, the appraiser may need more time if the property is larger or more complex to navigate.
What Happens During a Home Appraisal?
The home appraisal process involves a visit to the home and research to compile and finalize what’s referred to as a Uniform Residential Appraisal Report. More information about each step is included below:
Home Appraisal Scheduling
Once the lender orders the appraisal, it usually takes one to two days to get on the appraiser’s schedule. Be mindful that excessive demand in your area means it could take longer to complete the home appraisal.
House Walk-Through and Inspection
Next, the home appraiser will visit the property to inspect the exterior and interior. This could take anywhere from 30 minutes to a few hours, depending on the size and structure of the home.
Data Evaluation and Review
Before preparing the report, the appraiser will do some market research to identify similar properties that have recently been sold in the area, also known as comps, to help determine the home’s current market value. More on this shortly.
Preparation of Report
Based on their findings and recent sales data in the area, the appraiser will compile this information to issue a report. It will include images from the exterior and interior of the home.
Submit an online application form to inquire about Angel Oak Mortgage Solutions financing options.
Buy a home or refinance your existing mortgage with Zero Mortgage.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
What Do Home Appraisers Look For?
The appraiser assesses the home’s condition and other comparable properties in the area during their evaluation. Here’s a closer look at what they look for:
Internal Factors
The size of the home, or the square footage, along with the layout, the number of rooms, usability and structural features are all internal factors the appraiser considers.
External Factors
These include the overall structural quality of the home, the condition of the foundation, the location of the home and any other visible flaws.
Comparable Sales
The appraiser will visit the home to conduct an exterior and interior analysis. But before an appraisal report can be issued, they will also conduct research to find comparable properties in the area that were recently sold. These “real estate comps” help provide guidance on how much the home is worth.
What Factors Can Delay Home Appraisals?
Delays are possible in these scenarios:
- The home appraiser is at capacity and can only offer a date that’s several days away.
- The home appraiser is able to fit the property you’re looking to buy on the schedule, but they have several unfinished reports to complete for other properties.
- The home is large and takes far more time to analyze than the average property.
