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The Appraisal Process
If the buyer is securing a new loan to purchase your home, the Buyer’s lender will require an appraisal to determine the fair market value of the property. A licensed appraiser will research nearby houses, within one mile if possible, that have sold in the last six months and are similar to yours in size, age, construction and amenities.
The appraiser will make an appointment to see your home and will take about 30 minutes to an hour to look over the property. He will measure your home, draw a representative floor plan, take photgraphs inside and out, and review the property’s condition, specific improvements and amenities. You can help the appraiser by providing a list of any improvements and remodeling projects completed since you bought your home, along with an approximate dollar amount for each improvement. Keep in mind that remodeling projects rarely bring a 100% return on investment, but a list will ensure the appraiser doesn’t overlook the added features.
The appraiser will provide a typed appraisal report to the Buyer’s lender within a few days after visiting your property. You will be notified if the lender requires repairs before they will lend on your home. If specified on the contract, you must repair these problems. The appraiser will have to return to review the required repairs and a re-inspection fee will be charged.
Note: If the buyer is applying for an FHA or VA loan, your property will have to meet certain requirements. Chipped or peeling paint on any surfaces will have to be scraped and repainted. Missing or damaged shingles and missing slats or blocks in your fence will have to be replaced. Other improvements also may have to be made before escrow can close. Your SunTree Realtor will be able to advise you on the latest FHA/VA requirements.
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