{"id":23592,"date":"2021-05-17T12:54:06","date_gmt":"2021-05-17T19:54:06","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=23592"},"modified":"2022-08-31T10:20:09","modified_gmt":"2022-08-31T17:20:09","slug":"buyer-home-appraisal-checklist","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-home-appraisal-checklist\/","title":{"rendered":"Your Ultimate Home Appraisal Checklist for Homebuyers"},"content":{"rendered":"<p>Typically, when we talk about keeping track of a <a href=\"https:\/\/www.homelight.com\/blog\/what-appraisers-look-for-in-a-house\/\">home appraisal<\/a>, the <a href=\"https:\/\/www.homelight.com\/blog\/home-appraisal-tips-for-sellers\/\">seller<\/a> has more ability to stay on top of what\u2019s happening. Sellers have done research on the market before they set a home price, and because it\u2019s their house, reading the <a href=\"https:\/\/www.homelight.com\/blog\/how-to-read-appraisal-report\/\">appraisal results<\/a> won\u2019t take as much hand-holding from the agent. There are countless tips for sellers on prepping for an appraisal, what to <a href=\"https:\/\/www.homelight.com\/blog\/what-appraisers-look-for-in-a-house\/\">expect during the appraisal<\/a>, and even a <a href=\"https:\/\/www.homelight.com\/blog\/home-appraisal-checklist\/\">seller\u2019s home appraisal checklist<\/a>!<\/p>\n<p>But what about the buyers? Shouldn\u2019t the buyers be kept in the loop about the home appraisal process and have a checklist of their own?<\/p>\n<p>Yes, they should \u2014 although lenders are the ones who require the appraisal. Understandably, they want to make sure the house is worth the amount of money the buyer is applying for. Buyers should be kept in the loop because they can use that information to negotiate the terms of the deal or back out completely, providing they have an <a href=\"https:\/\/www.homelight.com\/blog\/what-is-an-appraisal-contingency\/\">appraisal contingency<\/a> in the contract.<\/p>\n\n\n\n\n\n<div class=\"geo-cta widget-cta widget-cta--content     widget-cta--dark widget-cta--dark-blue-gradient\">\n    <div class=\"widget-element--content\">\n        <div class=\"widget-element--content-header\">\n            <img decoding=\"async\" alt=\"homelight logo\" class=\"widget-element--logo\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\" width=\"106\" height=\"25\" \/>\n        <\/div>\n        \n                <h3 class=\"cta-headline \">Get Your Free Home Appraisal Checklist!<\/h3>\n                        <p>We&#8217;ve put together a home appraisal checklist to help you keep track of everything you need to know as a buyer.<\/p>\n        \n                                                                    <div class=\"widget-element--gravity widget-element--gravity-inline\">\n                    <script type=\"text\/javascript\">\n\/* <![CDATA[ *\/\nvar gform;gform||(document.addEventListener(\"gform_main_scripts_loaded\",function(){gform.scriptsLoaded=!0}),document.addEventListener(\"gform\/theme\/scripts_loaded\",function(){gform.themeScriptsLoaded=!0}),window.addEventListener(\"DOMContentLoaded\",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,themeScriptsLoaded:!1,isFormEditor:()=>\"function\"==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(\"The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 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And we\u2019ll give you a home appraisal checklist so you\u2019ll know what\u2019s going on when your potential home is being appraised.<\/p>\n<figure id=\"attachment_23596\" aria-describedby=\"caption-attachment-23596\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-666x381.png\" class=\"attachment-content size-content\" alt=\"Buyers and agents reviewing their home appraisal checklist.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-23596\" class=\"wp-caption-text\">Source: (<a href=\"https:\/\/icons8.com\/\">Icons8 Team<\/a> \/ Unsplash)<\/figcaption><\/figure>\n<h2>Breaking down the home appraisal checklist for buyers<\/h2>\n<h3>1. Discuss the sales price with your real estate agent<\/h3>\n<p>A home appraiser will research <a href=\"https:\/\/www.bankrate.com\/finance\/real-estate\/comps.aspx\">comparable properties<\/a>, or comps (properties that sold recently and that are similar to the one you\u2019re interested in) when they are trying to figure out the <a href=\"https:\/\/www.homelight.com\/blog\/buyer-what-is-fair-market-value\/#:~:text=To%20put%20it%20more%20simply,buyer%20to%20that%20particular%20house.\">fair market value of the home<\/a>. They will look at the house\u2019s condition, neighborhood characteristics, upgrades and renovations, square footage, and so on.<\/p>\n<p>You can do your research and review recent home sales to get an idea of how much you\u2019re likely to pay for a similar home. However, we highly recommend discussing the sales price with your agent because they have tools at their disposal that will allow them to create a full comparative market analysis (CMA).<\/p>\n<p>The agent can show you how to use the CMA to determine if the house is worth the asking price, even before the appraiser comes in.<\/p>\n<h3>2. Make an offer on the house<\/h3>\n<p>After discussing the sales price and the CMA with your agent, you\u2019ll need to decide whether or not you\u2019d like to make an offer on the house. If you choose to make an offer, you\u2019ll want to ask the agent whether they think you should offer to pay the asking price, or offer above or below it.<\/p>\n<p>In 2021, your agent\u2019s opinion about what makes a strong offer could mean the difference between getting a house \u2026 or not. <a href=\"https:\/\/www.homelight.com\/agents\/michael-nemecek-wi-63663\">Mike Nemecek<\/a>, a top-selling agent in the Green Bay Area with 16 years of experience, says he\u2019s seen many offers going above the asking price.<\/p>\n<blockquote><p>&#8220;We haven\u2019t had a lot of appraisal issues, but if the home you want to put an offer on is appraised at $200,000 and you offered $220,000, you have to decide what you want to do. We could approach the seller and tell them the house didn\u2019t appraise for the price they want, and we no longer want to pay $220,000. We want to purchase it at the appraised value.\u201d<\/p><\/blockquote>\n<p>After your offer is given to the seller, the fun begins! It\u2019s time for negotiations.<\/p>\n<p>The seller could accept your offer, or they could respond with a counter-offer \u2014 or reject it altogether. This is where your real estate agent can flex their negotiating skills and try to get everyone to come to an agreement where neither party feels like they\u2019re on the short end of the stick.<\/p>\n<figure id=\"attachment_23604\" aria-describedby=\"caption-attachment-23604\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-2.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-2-666x381.png\" class=\"attachment-content size-content\" alt=\"A person getting ready to sign off on their appraisal via their phone.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-2-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-2-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-2-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-2-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-2-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-2-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-2.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-23604\" class=\"wp-caption-text\">Source: ( Kelly Sikkema \/ Unsplash)<\/figcaption><\/figure>\n<h3>3. Don\u2019t forget the appraisal contingency!<\/h3>\n<p>Keep in mind that when you\u2019re submitting an offer, you will likely need to put up good-faith money, also known as <a href=\"https:\/\/www.homelight.com\/blog\/how-to-protect-earnest-money\/\">earnest money<\/a>. This deposit shows the seller that you seriously intend to buy the property. By including an appraisal contingency in your offer, you\u2019re protecting yourself and your deposit. If the home appraised lower than your offer, you\u2019re able to walk away with your deposit intact.<\/p>\n<p>Although the lender requires the appraisal and an appraisal contingency, they usually aren\u2019t the ones footing the bill for the appraisal \u2014 the buyer is. The cost of an appraisal ranges between <a href=\"https:\/\/www.homelight.com\/blog\/how-much-is-a-house-appraisal\/\">$300 and $1,500<\/a>, but the cost will depend on location, size, condition, and so on. Don\u2019t worry too much about the expense; the <a href=\"https:\/\/www.homeadvisor.com\/cost\/inspectors-and-appraisers\/hire-a-property-appraiser\/\">national average is between $312 and $407<\/a>, according to HomeAdvisor. With that said, there are some financial options where you can skip the home appraisal altogether.<\/p>\n<p>If you are applying for a conventional loan there\u2019s a chance you might qualify for an appraisal waiver. That said, it\u2019s hard to know who will actually qualify for an appraisal waiver because neither organization has guidelines available to the public.<\/p>\n<p>There are a few factors that are most likely to get you <a href=\"https:\/\/www.bankrate.com\/mortgages\/coronavirus-is-changing-home-appraisals\/\">approved for an appraisal waiver<\/a>, and they include your credit score, what assets you have, and the loan-to-value ratio. If you\u2019re borrowing 70% or less than the property\u2019s total value in a home below the conforming loan limits, your chances of being approved are higher.<\/p>\n<p>Another way you can avoid needing a home appraisal is if you\u2019re a cash buyer. In some markets, you could go through <a href=\"https:\/\/www.homelight.com\/cash-offer\">HomeLight Cash Offer<\/a> to make an all-cash offer and waive the appraisal contingency in the initial offer, save the appraisal for when it\u2019s time to close on your mortgage.<\/p>\n<h3>4. The lender orders the appraisal<\/h3>\n<p>Unless you\u2019re a cash buyer, you\u2019re going to need to take out a sizable loan from a lender. The <a href=\"https:\/\/www.thebalance.com\/appraisal-process-when-buying-a-home-2395235\">lender will almost always order a home appraisal<\/a> before they issue a final approval on a mortgage \u2014 they need to protect their investment! Should the borrower default on their mortgage payments, the lender can\u2019t sell the property for enough money to cover the loan if the house is actually worth less than the market value.<\/p>\n<p>The lender will hire an independent appraiser (often, they\u2019ll use <a href=\"https:\/\/www.nar.realtor\/appraisal-valuation\/nar-issue-brief-appraisal-management-company-qa\">appraisal management companies<\/a>, who in turn choose the appraiser) because they are an unbiased third party, which means they\u2019ll come back with a fair report.<\/p>\n<h3>5. Appraisal day<\/h3>\n<p>Once the lender places an order for an appraisal, the appraiser will usually respond within 48 hours. Depending on the size and condition of the property, an appraisal could take anywhere between 15 minutes and 3 full hours, and the lender may <a href=\"https:\/\/homeguides.sfgate.com\/long-house-appraised-58806.html\">receive the report in two to seven days<\/a>. If you have an FHA or VA loan, the appraisal timeline is about the same as one for a conventional loan, but the appraisal will be more detailed.<\/p>\n<p>Unlike a home inspection, where the buyer can tag along (and that\u2019s recommended!), the appraiser usually goes it alone; however, the <a href=\"https:\/\/www.lansingstatejournal.com\/story\/marketplace\/real-estate\/2017\/09\/21\/should-seller-present-during-home-appraisal\/689674001\/\">seller or their agent could be present<\/a> to answer any questions or provide extra information to the appraiser.<\/p>\n<p>At this point, buyers just have to sit and wait.<\/p>\n<h3>6. Review the appraisal<\/h3>\n<p>After the appraisal is finished, you\u2019ll receive the report. The appraisal report will go over everything the appraiser looked at to come to their decision about the home\u2019s value.<\/p>\n<p>Most appraisals come in right at (or even above) market value. With that said, Fannie Mae published a study using appraisal data, which shows that appraisals below asking price happen about <a href=\"https:\/\/www.aei.org\/wp-content\/uploads\/2017\/08\/Fout-Panel-VI.pdf\">~8% of the time<\/a>. In the study, for every percentage point that the appraisal value comes in below the asking price, the relative chance of renegotiating the price increases by 70%.<\/p>\n<p>If the value of the house is lower than asking, the lender could deny the loan.<\/p>\n<p>Fortunately, buyers do have the option of negotiating with the seller to make up the difference between their offer price and assessed value.<\/p>\n<p>You\u2019ll want to review the report with your agent, especially if the appraisal came in lower than your purchase price. The first thing to look for are any discrepancies, which could include miscalculated square footage, incorrect zoning, or even a mismatch in the number of rooms. When you point out these mistakes, make sure you have documentation to back them up.<\/p>\n<p>If you feel the assessed value is lower than the <a href=\"https:\/\/www.homelight.com\/blog\/buyer-what-is-fair-market-value\/\">fair-market value<\/a>, and you can back this up with comps your agent showed you, then you may be able to order another appraisal.<\/p>\n<p>\u201cWe have buyers saying they\u2019ll make up the difference between the asking price and assessed value. We have buyers agreeing to make up the difference, or they\u2019re willing to meet the seller halfway,\u201d Nemecek explains.<\/p>\n<p>\u201cIf there\u2019s a significant difference between the appraisal and asking price, you could have a discussion about having a second appraisal done.\u201d Your agent can help you discuss this option with your lender.<\/p>\n<figure id=\"attachment_23605\" aria-describedby=\"caption-attachment-23605\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-3.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-3-666x381.png\" class=\"attachment-content size-content\" alt=\"a person reviewing the results of their home appraisal.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-3-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-3-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-3-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-3-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-3-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-3-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/05\/Your-home-appraisal-checklist-3.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-23605\" class=\"wp-caption-text\">Source: (Aleksandra Sapozhnikova \/ Unsplash)<\/figcaption><\/figure>\n<h2>Decide what you want to do<\/h2>\n<p>You\u2019ve come so far and you\u2019re so close to closing; it can be a huge let-down when you realize the appraisal is lower than the asking price and the seller isn\u2019t willing to budge. If the lender isn\u2019t willing to approve your loan, you\u2019ll have to decide what to do.<\/p>\n<p>Do you want to try to make up the difference between your offer and the assessed value?<\/p>\n<p>Do you want to try finding a new lender? Note, this could cause significant closing delays, so may not be an option if your closing date is approaching.<\/p>\n<p>No matter what you want to do, you need to take the time and think about both your lifestyle needs and what you can afford. Sometimes it\u2019s best to cut your losses and back out of the deal \u2014 as long as you didn\u2019t forget to include that appraisal contingency!<\/p>\n<p><em>Header Image Source: (Mathilde Langevin \/ Unsplash)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you buy a house, you want to stay informed every step of the way. Here\u2019s a home appraisal checklist that\u2019ll keep you in the loop during this process.<\/p>\n","protected":false},"author":230,"featured_media":23606,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,704,646],"tags":[],"class_list":["post-23592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-buyer-appraisal","category-making-offers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Your Ultimate Home Appraisal Checklist for Homebuyers<\/title>\n<meta name=\"description\" content=\"When you buy a house, you want to stay informed every step of the way. 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