Here is what you need to know about the appraisal process.
Recently, I’ve received many questions about appraisals. What are they? What is their purpose? Today I want to answer those questions and explain the appraisal process.
Basically, an appraisal is an opinion on your home’s value. Of course, everyone has an opinion on this topic, but this opinion is for the lender or bank. Once you go under contract, your bank or lender will hire a third party to look at your house and determine its value.
Once this is done, the appraiser will create a report that compiles comparable homes and your home’s value. If this value supports the contract price of the home, then there aren’t any issues. If the appraisal is higher, then the buyer instantly has equity in the home. If it’s lower, the bank or lender may not cover the difference between the agreed-to price and the appraised value.
If this last case happens, make sure you discuss with your Realtor what steps you should take from there. If you have any questions, please call or email me. I am always willing to help.