Appraisals what do they look for

As a homeowner, these are all the things you should be concerned about trying to navigate your way through the real estate appraisal process. Hopefully, this information has been useful whether you will be selling your home now or in the near future! Understanding what house appraisers look for is key information for buyers and sellers to know. Hopefully, you now have a better understanding of the appraisal process and what to expect.

About the author: The above Real Estate information on what home appraisers look for during a real estate appraisal was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett remaxexec. Are you thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise! Bill Gassett is a nationally recognized Real Estate leader who has been helping people move in and out of the Metrowest Massachusetts area for the past thirty-four plus years.

Bill, I just had this happen where the appraisal came in very low. I advised my buyer to make appraisal contingent when agreeing to sellers counter. Seller of course very upset, we could not negotiate with seller who was represented by listing agent.

This is a repercussion when agents take overpriced listings and sellers who are set on a price. Petra that is what a good buyers agent should do! Real Estate agents need to remember who they are representing and the fact the client should always come first not the agents wallet or purse! Great resource Bill. One thing I am speaking about at my local real estate offices is knowing how to think like an appraiser.

If an agent knows how an appraiser chooses comps, and uses the same guidelines they do, then the likelihood of a deal falling through is reduced. Appraisers must follow appraisal standards as well as lender underwriter guidelines when choosing comps. What might appear to be a good sale to an agent might in fact not be that comparable. If agents would like to learn more about how appraisers go about choosing comps they may want to have an appraiser talk at one of their meetings so they can find out first hand.

Keep up the good work! Thanks for dropping by and commenting Tom. Great advice for sure when it comes to appraisals and real estate agents understanding how they work. We feel the bank may have had involvement in the house coming in a the purchase price. Can we ask the bank to take off PMI because the house was under appraised?

It is quite common for an appraisal to come in at the purchase price. More often than not this is what the appraiser will come in at. In regards to getting your PMI removed you need to have 20 percent equity in the property before that can happen. Might be worth it. Crystal — yes that is possible.

Most lenders will not consider any difference over sales price at which the appraisal comes in at. What will generally rile an appraiser is when the agent provides comps that are much larger or smaller, in both living area as well as lot size, also condition, and varying location issues, i.

If it should come down to a dispute, you have lost all credibility. Zillow misses that. A Victorian from may be a better specimen of architectural significance and quality than a brand new tract house.

Many s capes and tudors are more solidly built than most anything from the s. John the question that was asked was regarding getting rid of PMI after the sale so your comment does not apply to this situation. You do not need an appraisal if you have 22 percent equity in the home. I agree with you that providing comparable sales data that does not apply to the subject property makes little sense. I am not suprised at all that you see this from some real estate agents.

Very informative! Easy read and easily understood too. Not only that, mold is also extremely toxic and dangerous to those who are exposed. Mold poisoning can bring on considerable respiratory issues along with a host of other health complications. When appraisers appraise your home, they consider other homes that are similar in size in your area. The home appraiser will also assess the size of the lot the home sits on. The garage size will be a contributing factor, as a home with a 3 or 4-car garage will appraise higher than a home with a 1-car garage or no garage at all.

An appraiser will assess the structure and overall condition of a home. While they will typically not pay as much attention to cosmetic details, they will take note if the home is particularly run down. They will look at the doors, windows, ceilings, walls, and any leaking faucets or visible electrical issues. If any rooms in the house — especially the kitchen and bathrooms — have been renovated, the appraiser will take note. Energy-efficient appliances or other eco-friendly aspects of the home are also a plus.

They will also note a fireplace or a porch, patio, or fence around the house. Certain home improvements add value to a home , while others don't. If your home has central air conditioning instead of individual air conditioners in every room, it may appraise higher. The appraiser will also assess whether your heat is fueled by oil, gas, or electricity and will note any outdated heating and cooling systems.

Any additional upgrades that have been made to the home, such as new hardwood flooring, a new garage or front door, a new roof, new siding, etc. Termites, rodents, and other pests can cause irreparable damage to the home's structure, so this will play a role in the appraisal process. If you are obtaining a government-backed loan — such as a VA or FHA loan — certain safety features will need to be in place.

The appraiser will look for smoke detectors on every level of the home, handrails on all staircases, and other safety details. While the process behind a home appraisal and home inspection may seem similar in that they both involve analyzing the home's condition, they are two very separate processes.

A home appraisal is used to determine the value of a home, whereas a home inspection considers a home's condition to ensure it is habitable.

An appraisal is typically much shorter than a home inspection, as a home inspection usually lasts several hours and involves a thorough analysis of the property's condition. The appraiser communicates with the mortgage lender on the amount the property is worth, whereas the home inspector communicates with the buyer or seller of the home on structural problems or repairs that are needed on the property.

A home inspector will provide information on how to fix any problems encountered during the inspection process, whereas a home appraiser will not provide details on how to repair the issues they find. Appraisers are licensed professionals who do not have any ties to the mortgage lender, buyer, or seller. They must be a neutral third-party who can provide a fair, unbiased appraisal of the home.

Appraisers must typically go through several hours of training, depending on the state where they are becoming appraisers. The buyer typically pays for the appraisal, but the mortgage lender is usually the one who will order it. According to Vaccari, the appraiser cares about the following:. Mortgage lending discrimination is illegal.

If you think you've been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take.

No such subjective considerations apply to an appraisal. Be sure everything works e. You have completed a major step toward refinancing your mortgage and saving money. Being armed with these figures can give you some bargaining power when you meet with your lender. If you want to appeal a low appraisal, you will have a better chance of succeeding if you offer strong data to support your case.

Given the strict federal regulations governing the process, is there anything you can do about a low appraisal? If you are not able to successfully challenge a low appraisal, how do you ensure that the refinance goes through? You can choose to pay the PMI for now.

If home values continue to rise, you can later provide comparable sales to your mortgage servicer and ask it to remove PMI, even if you have not yet paid down much of your principal. The home appraisal process typically takes seven to 10 days.

The timeframe depends on the property, the complexity of the appraisal, and the appraiser's schedule i. The appraiser may spend 30 minutes or up to several hours examining the home in-person. Once the appraiser has evaluated the home, it takes a week or two to compile the appraisal report.

After the appraisal, the next step is underwriting. The mortgage lender reviews the loan file to ensure everything is in order, assesses the risk, and either approves or denies the application. Some borrowers might receive conditional approval, meaning some item needs to be resolved or explained. If the mortgage or refi is approved, the next step in the process is closing. If you're trying to buy or refinance a home, a good appraisal is key.

If the appraisal comes in too low, you might not be approved, or you could face higher interest rates. There are a number of factors that can negatively affect your appraisal, including:. In general, the appraisal happens two weeks before the closing date—so it should be ordered about three to four weeks before closing.

Understanding how the appraisal process works will give you the best chance of getting an appraiser to assign the highest possible value to your property. Department of Veterans Affairs. Department of Housing and Urban Development. Federal Deposit Insurance Corporation.

Part Appraisals. Government Publishing Office. Our uniquely qualified appraisers are ready to discuss your needs and ensure a successful transaction. Previous Next. Site Influences Evaluated An appraiser is responsible for observing and documenting any positive or negative site influences. Improvements Evaluated Home improvements are described in terms of their age, the extent of the work, room allocation, quality of construction and the current condition.

Prepare for an appraisal A low appraisal can prevent a sale from moving forward. Here are a few ways to do so: De-clutter and clean While a clean house does not directly impact its value, it can impact the presentation of the features that do. List upgrades and renovations Prepare a list of major upgrades, repairs or renovations to be presented to the home appraisers , especially work that would be difficult to observe during an appraisal.

Do you require the services of an appraiser in Vancouver?