How Long Does An Appraisal Take? | BidMyListing

Mar 3, 2023 10:00:00 AM / by

How Long Does a Home Appraisal Take?

An appraisal can be make-or-break for homebuyers and sellers alike. It's a step in the right direction in terms of understanding what a home is worth. The process of home appraisal determines a property's current market value. It's an essential step in the buying and selling process and helps determine whether a property sale/purchase will be successful. The lender establishes the property's value and then determines whether the amount is an appropriate financing amount.

 A home appraisal is conducted by an appraiser who will research the local and current markets for the valued property type.

What Is a Home Appraisal?

An appraisal is a formal estimate of the value of your home. The appraisal process can mean the difference between buying and selling your home or even whether you can secure financing. A good appraisal is needed to indicate how much your home is worth at this current point in time. An estimate looks at the things that determine a home's value, such as the house's square footage and architectural features. An appraisal will also look at the market for homes in your neighborhood. When purchasing a home with a mortgage, the appraiser will use the appraisal amount to determine how much of a loan you'll need to obtain. Lenders often require that all properties be appraised before they are eligible for financing. He will also consider location, size, condition, and other factors that affect a home's value.

How It Works

The first step in the appraisal is for a qualified appraiser to visit the home and inspect it. The appraiser will also look at similar homes nearby and gather information about the market for properties like yours. Then they will use that knowledge and local building data to arrive at a value amount. Appraisers typically offer an opinion on whether the value of your home is higher or lower than what you are asking or what you paid for it.

  • The lender hires an independent professional appraiser who examines the property and the most recent sales prices of comparable properties in the neighborhood.

  • The lender requests a home appraisal to determine how much a home is worth.

  • The appraiser examines information about other recently sold homes in your area, then visits your home to see if it's similar and estimates its value. The appraiser also determines the value of any upgrades to your property, mainly if they were done recently or at considerable expense.

  • The appraiser uses all of this data to determine a "market value" for your property. The lender then decides whether the appraisal amount is enough to approve financing. The lender uses a report explaining their conclusion to help set the loan amount.

Cost of an Appraisal on a Home

An appraisal cost depends on the type of property being appraised and the complexity of the property. Appraisers also charge extra for examining fixtures or special features that add value to some homes—the appraisal on a home costs between $300 to $450.

How Long Does an Appraisal Take?

You may be asking ‘how long does an appraisal take?’ so you can best plan out your time before a home sale/purchase. The appraisal timeline depends on your time, the complexity of your property, and how busy the appraiser is. It also varies depending on where you live and who you work with. Scheduling an inspection lasts 2 to 14 days, followed by a physical appraiser inspection lasting an average of 3 days. The final appraisal phase typically falls within 2 to 7 days of receiving the appraisal report.

How Long Does It Take To Get Appraisal Back?

How long it takes to get appraisal back depends on the lender, the appraisal company, and their busy schedules. An estimate takes approximately 3 days to get back. Lenders can determine if you qualify for a mortgage with the information provided. When you take out a mortgage, a lender will conduct an appraisal of the property that is being financed. It's based on how much you paid for the property, how much it is worth today, and what kind of interest rate you are paying. If a lender determines that your property is worth less than you paid, they will likely require an appraisal as part of your closing costs.

How Long Does an Appraisal Report Take?

The appraisal report takes approximately three days to complete. The lender will review the report and determine how it is to be applied to your loan. This is where your lender will use the information in the appraisal report to determine what type of loan you qualify for, how much you can borrow, and the interest rate you can get. They usually can send appraisal reports back to the home buyer within 1 to 2 business days after receiving the information.

What Does An Appraiser Look For?

When you hire a home appraiser, you'll want to ensure they have experience in your area. Appraisers use an industry-standard checklist to value local homes based on location, condition, and size. Appraisers look at three key categories:

1. Exterior Integrity

This is how the outside of the property looks, including the roof, foundation, siding, and windows. All of these components influence the overall value of your home because they affect how well it will hold up over time. The condition of your home's exterior is the primary factor in determining its value because it affects how well it holds up over time.

2. Internal condition

An appraiser will consider other important aspects of your home's interiors, like the condition of its wallpaper, flooring, and other accessories. Inspectors look at the state of the wiring and plumbing to determine if they are in good working order.

3. Comparable Sales (comps)

The most accurate way to determine a home's value is to look at houses recently sold in your area. These are called comparable sales. It's easy to learn more about the importance of homes like yours when you can access recent sales data. Appraisers use current sale prices in your neighborhood to estimate the value of your home.

What to Do After You've Got the Appraisal Report

Home buyers purchasing their next home will use the appraisal report to determine the loan amount they can get. They'll use this information to find a lender offering them a mortgage. The report will also be critical in any negotiations between you and your lender. After an appraisal, you might feel apprehensive about how much you offer for a home. If you pay too much, the lender will be forced to make up the difference from their pocket, which could mean your mortgage payments will be higher. Your goal should be to find a lender who offers you a loan amount equal to or slightly more than the appraisal amount.

The Bottom Line

Appraisals are an essential part of the home-buying process. The above information will help you get started but the process can be overwhelming. BidMyListing can also assist you in finding the perfect realtor to help navigate the process. Our first-of-its-kind marketplace connects home sellers with top real estate agents who bid for the opportunity to represent their home sales. Each bid includes a cash offer, listing term, commission rate, and information about the agent. By putting all the negotiating cards on the table – and having the agent invest in the home sale upfront – we empower home sellers to make more informed decisions.

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