Appraisal - What Should I Expect?

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Real Estate

Appraisal - What Should I Expect?


Your property is getting appraised today, here is what you should expect... 


     First off, expect the appraiser to come into your property. Don't be worried, he/she will only need about 5-10 minutes of your time (based on the size of your home). The appraiser will go around on their own mapping out your home on their notepad, and taking photos of each room. The appraiser may ask you if you have updated anything in the home recently. The appraiser will also take note of any safety concerns. Some examples of some common safety concerns that I see often are: knob tube wiring, no hand railings, peeling paint (if built before 1978 *lead paint), broken windows, visible leaking pipe.etc… Most importantly, the appraiser will go back to their office to determine your property’s value. How is this done? Well, they will draw a 1 mile radius around your property, and pull all of the homes that sold similar to yours within the past 6 months. Based on the results, he/she will compare your home to the homes that resulted to determine your property’s value.
     Now, in most cases, whatever the appraiser says the value is, is the amount the bank will give the buyers a mortgage based off of.  A typical seller will want to negotiate with a buyer to bring their sale price above what they originally listed it for (ex. 400K list price); however, if the appraiser says your home is only worth 380K. Then, the buyer will only get a mortgage based on 380K. Be careful! Who’s paying that 20K difference between the agreed sale price to the appraised value? The bank isn't… Does the buyer have an additional 20K in their bank to cover this?
Also, if there are any “safety concerns” that the appraiser pointed out. Then, the issues will have to be addressed/fixed before the buyer for your property can purchase. In other words, the bank will not lend them the money until all safety concerns are fixed! Therefore, getting past your home inspection is a giant step forward; however, the appraisal can be just as big of a hurdle to get over in-order to sell your home!

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Rhode island appraisal, Rhode Island Realtor, Rhode Island Real Estate Agent, Rhode Island Agent, Specialist RI Agent