Whether you’re buying or selling, the appraisal will be a key part of the process. Today I’m debunking three myths about appraisals that you shouldn’t believe.
#1. The Appraiser Works For the Buyer
The appraiser is hired by the lender to evaluate the property. The lender needs to ensure the property isn’t worth less than what the buyer’s paying; they don’t want a loan on an asset that will make the buyer upside down as soon as they close.
#2. The Inspection and Appraisal Are the Same
The appraiser does care about the condition of the property; they need to determine whether it has working mechanicals, roof leaks, etc. However, the appraiser doesn’t perform a full home inspection. The home inspector checks out every part of the property to make sure there are no issues you can’t see.
“APPRAISALS ARE BECOMING EVEN MORE SIGNIFICANT.”
#3. You Can’t Challenge the Results of an Appraisal
If the value comes in lower than the buyer and seller agreed upon, the seller has a few options. They can challenge some things on the appraisal and get it overturned. If the value is too low, go through the appraisal report and see if you find any inconsistencies, such as if the home was measured incorrectly. Also, look at the comparables the appraiser used; sometimes appraisers can be wrong.
It’s uncommon that you can get the appraisal overturned, but it’s worth the time and effort in case something is flawed. However, I suggest not spending too much time on it and work on another solution if overturning it doesn’t seem possible.
In the current market, appraisals are becoming even more significant as home prices are increasing. We’re seeing more situations in which the home value comes in low, so it’s crucial to know the finer points about appraisals.
If you have further questions about appraisals or the buying or selling process, please reach out to us via phone or email. We’re always happy to help!