The 25 Most Common Questions About Residential Appraisals (and Their Answers!)
Welcome to the ultimate guide on residential appraisals! Whether you’re buying a house, selling one, or just curious, you’ve come to the right place. We’ve rounded up 25 of the most frequently asked questions about appraisals and answered them in a way that’s easy to understand. Let’s dive in!
An appraisal is when a professional, called an appraiser, looks at a home and estimates how much it’s worth.
Appraisals help buyers, sellers, and lenders make sure the home’s price is fair.
Usually, the lender hires the appraiser. If you're buying a house, this means your bank or mortgage company.
They look at things like the size of the house, the number of bedrooms and bathrooms, the condition, and recent sale prices of similar homes nearby.
They’ll check the home’s layout, features, condition, upgrades, and any problems, like a leaky roof or cracked foundation.
The appraiser’s visit usually takes about 30 minutes to an hour, but the full process can take a few days.
Appraisals typically cost between $300 and $600, depending on your location and home size.
The buyer usually pays for the appraisal as part of the closing costs.
Not really. Lenders pick an appraiser from a neutral list to ensure fairness.
If the appraisal is lower than the agreed price, the buyer and seller may need to renegotiate or the buyer might need to make up the difference.
Yes, if you’re the buyer, you’ll get a copy from your lender.
Appraisals are usually valid for 3 to 6 months, but it depends on the market.
An appraisal determines the home’s value, while an inspection checks for problems like faulty wiring or plumbing issues.
Not really. The appraiser focuses on the home’s features, not your clutter.
Yes, especially major upgrades like a new kitchen or bathroom. But not all renovations add equal value.
Yes, the outside of your home and landscaping can impact the value.
Yes, you can appeal by providing evidence, like recent sales of similar homes, to support a higher value.
Yes, they usually know the agreed price but still assess the home’s value independently.
An appraiser will still visit and determine your home’s value for the lender.
Absolutely! Values can go up or down based on the market and the condition of the home.
No, but it’s a good idea to make sure you’re paying a fair price.
It’s a recently sold home similar to yours in size, condition, and location. Appraisers use these to estimate your home’s value.
Yes, appraisers look at whether home prices in your area are rising, falling, or staying the same.
Congrats! That’s good news for the buyer, but it doesn’t affect the agreed price.
Yes! Fix small repairs, improve curb appeal, and clean up to make a good impression.
Final Thoughts Residential appraisals might seem a little intimidating, but they’re really just a way to make sure everyone gets a fair deal. Now that you know the basics, you’re ready to tackle the process with confidence!