Step 18 for NYC Home Selling: Handling Appraisals

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If the buyer is using a mortgage to buy your home then the lender will require that an appraisal be conducted. So what is an appraisal? 

An appraisal is a certified value of the home evaluated by a real estate appraisor. The appraisor adheres to a strict set of criteria that is nationally recognized in order to ensure the bank that they are not lending out too much money for a home. This can create complications if a buyer were preauthorized for far less than the amount the home was appraised for. This is where our negotiation comes into play!


So who orders the appraisal?  The buyer’s mortgage lender orders the appraisal, but the buyer pays for it.


When does the appraisal occur? During business hours.


Do I need to attend the appraisal? No, in fact, it is preferred that you do not. Instead, we’ll meet the appraiser at your home and walk him/her through the property. We’ll go over our comps and state our case as to why we think the purchase price we set the home for was justified.


How long does the appraisal take? You will have to talk to the appraisor, but it can take anywhere between 30 minutes to 2 hours. 


How long until we know if the property appraised for the purchase price? Usually a week to 10 days after the appraisal.  Once the report is written, the buyer’s mortgage lender forwards it to the buyer to let the buyer(s) know how much the appraisal was and if they will be able to give a loan out for the full amount or not. 


If the property appraised at the purchase price, nothing further needs to be done and the closing process will proceed as usual.  If the property appraised for less than the purchase price, this means the bank will only give the buyer a loan for the appraised value.  In this case, the buyer will often come back to us and ask to renegotiate the purchase price down to the appraisal price. This is where we will negotiate in your favor in order to create a deal that benefits both parties.


Who orders the appraisal?  The buyer’s mortgage lender orders the appraisal, but the buyer pays for it.


When does the appraisal occur? Usually during week day hours.


Do I need to attend the appraisal? No, you will not attend the appraisal. Instead, we’ll meet the appraiser at your home and walk him/her through the property. We’ll go over the comps and state our case as to why we think the purchase price is justified.


How long does the appraisal take? Usually about 30 minutes.


How long until we know if the property appraised for the purchase price? Usually a week to 10 days after the appraisal appointment.  Once the report is written, the buyer’s mortgage lender forwards it to the buyer to let the buyer know whether the property appraised at the purchase price.

Step 18 for NYC Home Selling: Handling Appraisals Step 18 for NYC Home Selling: Handling Appraisals Reviewed by Alex Sung on January 02, 2021 Rating: 5

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