Appraisal Q&APosted: July 2, 2015
Q. What is an appraisal?
Many different factors can go into estimating a value for a home. These factors include sales of similar homes in the area, and other information about the property and the surrounding area. For example, the appraiser can estimate a higher value if the home or yard is bigger, or if the home has more bathrooms or a newer kitchen than other recently sold homes. If the home is smaller, needs repairs, or is missing features (like a second bathroom, for example), the appraiser can assign a lower value. The appraiser then determines the home’s value based on differences between the home and recently sold homes in the area.
Q. Will the homebuyer receive a copy of the appraisal?
A. Yes. The Equal Credit Opportunity Act of January 2014 requires creditors to automatically send a copy of home appraisals and all other written valuations on the property after they are completed, regardless of whether credit is extended, denied, incomplete, or withdrawn.
Q. Who do I talk to if I feel the appraisal value is incorrect?
A. In order to ask an appraiser to correct errors in the appraisal report or consider additional information, you must have your Realtor submit a written request for correction to the appraiser’s client – NOT THE APPRAISER
Q. Who orders the appraisal?
A. The mortgage LENDER orders the appraisal and is the appraiser’s client. Not the homeowner, and not the buyer.
Q. How much does an appraisal cost?
Depending on the complexity of the appraisal, you can expect $800 – $1,000 for single family homes.
Q. Does a buyer’s choice of financing impact the appraisal process?
A. Yes. For instance, some loans will require the property to meet certain minimum property requirements.
Q. How long does the appraisal take?
A. The turnaround time for a full residential appraisal report in Nome is 2-3 weeks.