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\n <\/div>\n \n Start With a Free Home Value Estimate<\/h3>\n
Enter a few details about your home, and we\u2019ll provide you with a preliminary estimate of value in less than two minutes. This won\u2019t replace a home appraisal, but it can be a helpful starting point.<\/p>\n \n
Why are the appraiser\u2019s and inspector\u2019s reports important to sellers?<\/h2>\n
While they typically report to people on the other side of the transaction, the appraisal and inspection report generated by these professionals can impact your bottom line.<\/p>\n
Their findings can sometimes be the difference between an amicable sale with an on-time closing and contentious negotiation which results in the buyers walking away \u2014 after the house has been taken off the market.<\/p>\n
In January 2022, the National Association of Realtors (NAR)\u2019s Confidence Index Survey<\/a> revealed the percentage of buyers waiving appraisal and inspection contract contingencies<\/a> has been trending downwards in recent months.<\/p>\n In the December 2021 survey, 19% of buyers waived the inspection contract contingency, down from its height of 27% in July 2021. Meanwhile, 21% of buyers waived the appraisal contract contingency, also down from a peak of 29% in June 2021.<\/p>\n So, as a seller, there\u2019s a pretty good chance your home will be evaluated by both an appraiser and inspector before closing.<\/p>\n On the surface, their visits may seem very similar. Each professional typically walks through the house and the yard with an extensive checklist, taking photos and carefully examining everything from the crown molding upstairs to potential signs of mold in the basement.<\/p>\n Yet, while they may literally take the same path through your property, their evaluations differ significantly.<\/p>\n By understanding the diverse roles these professionals play in the sales transactions, you can better prepare for their visits and bolster your chances of a smooth sale with your current contract.<\/p>\n In fact, to help pre-empt the possibility of a delayed or canceled closing due to repair negotiations, some sellers even commission their own appraisal or inspection reports. Then, they use the information to make small repairs, price the property, or make other marketing decisions prior to listing.<\/p>\n The role of appraisers and inspectors are often misunderstood or considered interchangeable.<\/p>\n Some sellers and buyers might question whether they need an appraiser \u201cversus\u201d (or as opposed to) an inspector. In reality, it rarely comes down to choosing one professional over the other.<\/p>\n Depending on the details of your transaction, your house might be evaluated by neither, one, or both.<\/p>\n Appraisers<\/a> assess the home\u2019s value, so the lender can be confident the property is worth the price being paid. That way, if the buyers default on the loan, the lender is left with a sellable asset.<\/p>\n Inspectors<\/a> examine the quality and condition of the homes and make the buyer aware of defects \u2014 both for the purposes of final contract negotiation and to protect the buyer from the onset of unexpected expenses after the sale.<\/p>\n To be sure, there is some overlap. For example, if a damaged roof has leaked rainwater into the home and caused mold in the attic, it affects both the home\u2019s value and condition. Because repairs or replacement costs thousands of dollars, that roof would be flagged on both the appraisal and the inspection report.<\/p>\n However, the appraisal might note the home’s increased value because of a newly renovated kitchen with quartz countertops, or its proximity to the beach. Those details won’t appear in an inspection report, but a faulty light switch in the shower is destined to make the list.<\/p>\n Before properties can be financed, their value and condition are typically examined by an independent appraiser contracted by the buyer\u2019s mortgage company. Each lender has its own formula for determining value and evaluating the home\u2019s condition.<\/p>\n All states require appraisers to be licensed and certified to provide appraisals for federally certified lenders.<\/p>\n In addition, the Appraisal Institute<\/a> offers advanced credentialing such as MAI, SRPA, SRA, AI-GRS, and AI-RRS designations in residential real estate.<\/p>\n According to Appraisal Institute President Pledger M. \u201cJody\u201d Bishop, III, MAI, SRA, AI-GRS, these licensed professionals typically evaluate 250 homes a year.<\/p>\n Contrary to popular belief, those appraisers\u2019 job is not to \u201cprotect\u201d the lender. Their goal is to \u201cprovide an independent opinion of value\u201d for that particular property.<\/p>\n To make sure the appraisal is impartial and in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act<\/a>, many lenders contract with Appraisal Management Companies (AMC<\/a>) to assign properties to their network of independent appraisers.<\/p>\n If an appraisal report demonstrates your property meets the lender\u2019s criteria for safety, security, and soundness, and the value of the home to be above or near the asking price and \u2014 or if the home has been the subject of a bidder war and the buyer is willing to pay for the difference between the appraised value and the asking price \u2014 the loan is more likely to be approved.<\/p>\n If your home doesn\u2019t meet the lender\u2019s criteria, you risk the appraisal coming in below market value<\/a> and the property\u2019s eligibility for certain loans.<\/p>\n If the appraiser flags significant repairs that must be made for the property to be eligible for a loan program, it opens the door for potential closing delays and the opportunity for the buyers to renegotiate or even void the contract.<\/p>\nHome appraiser versus home inspector<\/h2>\n
What is a real estate appraiser?<\/h2>\n
When does a home appraisal take place?<\/h2>\n