One of the questions we are often asked by our buyer and seller clients is how the appraisal process works. It’s usually a straightforward & simple process, so let’s walk through it together.
The Appraisal Process
Step 1: Once a contract has been accepted on a home, the buyer’s lender will order the appraisal from an independent appraisal company. The buyer will not know which company the bank will use in advance and has no input into the selection — this is all done by the lender.
Step 2: An appraiser from the independent company will make an appointment with the listing agent to come view the home. While there, the appraiser will measure inside and outside the home, take note of the condition of the home, record any updates or upgrades and consider the home’s location.
Step 3: After a few days the appraiser will provide the report to the bank. The bank will then share the report with the buyers and their agent.
Step 4: The buyers’ agent will then contact the listing agent to let them know whether or not the house appraised. The buyers’ agent will not share the appraised value of the home unless the appraised value comes in below the contract price. If the appraisal is below the contract price on the home, the buyers’ agent will share the appraised value with the listing agent. Then, based on the terms of the contract, the buyer and seller may need to return to the negotiating table. If the home appraises at or above the contract price, the sale will continue to move forward.
Questions? Please reach out! The more you know, the more confident you’ll feel about buying or selling!
Warmly,
Lauren & Cambron | Lauren Zurilla & Associates