What to expect after an appraisal.
What to Expect After an Appraisal.
After the appraisal, the appraiser compares 3 similar like sold properties. The appraiser usually takes 5-7 business days to generate the report. When it gets very busy it can take up to 2 weeks. During this time the appraiser is looking at similar sold homes. It is very likely they will reach out to the listing agent for more information on the home.
The bank has an appraisal done to confirm the value of the purchase price. If the bank is loaning $500,000 to a buyer to purchase a property, the bank wants to make sure that the property is worth that. If the buyer decides to take off to Cuba and stick the bank with the property, the bank wants to know they can put it on the market and get their money back.
Appraisals usually cost the buyer between $450-500. The buyer is asked to pay for this in the beginning of the loan.
Bad appraisals: Bad appraisals happen. About 5% of my deals did not appraise at value. I recommend waiting to cross that bridge until it happens. If an appraisal comes in below value, the buyer can pay the difference, the seller and buyer can meet in the middle, the seller can reduce the price, or the seller can put it back on the market.
Fha appraisals are valid for 4 months. This means if the seller decided to put it back on the market, and the buyer is getting an FHA loan it will be the same appraisal. We do have option to get a second appraisal with a FHA loan. We do have an option to contest the appraisal. This means filling out a form and sending all the comps we can find in hopes that the appraiser will change their valuation. Historically, I have not had any luck with contesting the appraisal.
If the buyer has a conventional loan and the property does not appraise, the lender can order up to three appraisals.