With an offer in hand, it’s time for the next home buying or selling hurdle: the dreaded appraisal.
And it’s no surprise home appraisals have quite the reputation. Twenty-five percent of home sales get delayed before closing, and appraisals cause a whopping 20% of those delays.
So what can buyers and sellers expect – and subsequently do – to ensure that the process goes as smoothly as possible for all parties involved?
Here, we’ll break down what to expect and do before, during and after the appraisal so you can get to the closing table – without any delays!
Before The Appraisal
The home appraisal will take place after you accept an offer and usually within seven days after the inspection in order to assess the fair market value of the home.
The appraiser is typically selected by the lender and is paid for by the buyers, costing between $300-$400.
As the seller, you can prepare for the appraisal by …
Cleaning the yard.
Pull weeds, mow the lawn, trim hedges, edge the grass, clear cobwebs, and sweep leaves and debris.
Touch up paint.
Surprisingly, appraisers will factor peeling paint into their evaluation so touch up any areas that need attention.
Deep clean.
Act like you are showing the house all over again – so don’t miss a spot!
Enlist your agent.
Make sure your agent provides comps ahead of time in case the appraiser asks for them.
During The Appraisal
Taking anywhere from 15 minutes to a few hours, an appraisal assesses the value of the home through measurements, photos, square footage, lot size, and number of rooms in order to figure out how the home compares to other similar properties in the area.
Additionally, appraisers need to answer specific questions about neighborhood demographics, housing trends in the area, available utilities, measurements and details about the home, property condition, and how the house fits into the surrounding neighborhood.
In addition to noting upgrades made to the property, appraisers are looking for the home’s:
Exterior Factors
- Structure
- Age
- Location
- Property site
- Construction quality
- Roof and foundation integrity
- Gutters and siding
- Parking
- Exterior condition
- Neighborhood
Internal Factors
- Square footage
- Functional layout
- Number and size of bedrooms, bathrooms, and kitchens
- Included utilities
- Health and safety equipment
- Appliances
- Interior condition
- Structural integrity
- Code compliance
After The Appraisal
You’re nearly at the finish line! If you have done all you can to prepare for the appraisal, now’s the time to keep your fingers crossed and say a silent prayer that it all went according to plan.
You’ll be anxious to know the results and thankfully, you won’t have to wait long as the appraisal report should come back in less than a week.
The report – about 10 pages or fewer – will contain neighboring comparable properties with photos and details of each property, including the home being appraised, its appraised value, how the value was determined, and what factors the appraiser considered.
And if the appraisal came in at the right price, CONGRATULATIONS! You’re ready to close! (If it didn’t, not to fear. We’ll cover what to do if your appraisal came in low next week. And don’t sweat it – it happens and in most cases, it can be resolved!)
A Team You Can Trust
At DeLeon Sheffield, our years of experience mean we’ve been there and done that – and nothing surprises us anymore. But we understand that this may be an entirely unfamiliar – and overwhelming – process for you. That’s why our real estate professionals are steadfastly dedicated to representing you every step of the way, from first showing to closing.
Because at DeLeon Sheffield Company, ‘We’re More Than Realty; We’re Family.’
