Appraisal Tips

 

There are 5 main criteria appraisers use to determine the value of a home:

            1.  Location

            2.  Age

            3.  Condition

            4.  Additions or Renovations

            5.  Recent Sales of Comparable Homes

 

As a buyer, when you make an offer, keep this criteria in mind.  For example, if the home you are looking at is much nicer than the surrounding homes, there is a good chance the home will lose value compared to a home that may be of lesser value than the surrounding homes.  An addition adds square footage and value to the home as do certain renovations.  Appraisers use current comparable prm ...

What If a Home Doesn’t Appraise?


In this market, many sellers are concerned the house they are selling will not appraise at the value the buyer offered.  That certainly is a legitimate concern and is a definite possibility. 


Here’s a quick explanation of what happens during the appraisal part of the offer.  Most likely if you have an appraisal contingency, the deadline is between 30 to 60 days.  This means that within the number of days indicated on the offer is when the appraisal report needs to be sent to the Seller and lender for proof that the home’s value is at least what the buyer has written in the accepted offer.  


Your best-case scenario is that the home appraises out and the contingency is met.  Then you move forward to the loan commitment and financing contingency.  


What happens if the home doesn’t appraise at or above the offered purchase price?  In the Offer to Purchase, there is; ...