The appraisal is an important part of the home buying process. There are a few different variables (i.e. who will pay for it, what happens if the house doesn't appraise for value?) that buyers should be aware of.
Our team is experienced with the home buying process and can walk you through step by step. This is something we plan for in our buyer's consultation, prior to going out and looking for homes. It's nice to get these things squared away so that we can be prepared and move quickly once we find the right home.
That being said, here are some important things to keep in mind with the appraisal.
What Buyers Should Understand About Appraisals
The buyers pay for it. Appraisals are required by the bank, who wants to certify that the house is valued at least at the value they are lending. Some lenders require payment at the time of the appraisal, and others at the time of closing.
The home must appraise at value. If this doesn't happen, the transaction can go sideways. This is the responsibility of the seller. If the house doesn't appraise, typically the seller will come down and meet somewhere in the middle, or commission a second appraisal.
Watch out for appraisal addendums. They can increase your cost to close/cash required at closing. Experienced agents will write these to protect sellers or buyers, so it's important that you are represented by a great agent who knows how to get you in a good situation.
Get Started on the Home Buying Process
The home buying process is somewhat complicated, but you don't have to handle it alone. Our team is experienced and can create better situations for you, save you money, and make the entire process much more simple.