A house appraisal has three components. First, the appraiser must physically visit and examine the home. Second, the appraiser must then search for recent sales of comparable homes in or near the neighborhood of the subject.
Finally, the appraiser must create a report, justifying the home's value using detailed adjustments to the comparable sales. In most cases, appraisals are delivered to the mortgage lender in two to seven days. The physical house examination might be quick, taking around 15 minutes, or upwards of two to three hours, depending on the size and condition of the property.
Evaluating condition, as average, good, fair or poor, can greatly affect a home's value. This is why physical visits can be brief when houses are in average or good condition or take longer, particularly if the property earns a fair or poor rating.
Recent area sales, within the prior 12 months, of similar properties must be used to establish an accurate opinion of value. The lender is the one who will hire an appraiser and will receive the appraisal report. There are three key components to the home appraisal report : The physical inspection, the comparable sales selection , and the evaluation of data.
Physical inspection This is where the appraiser will examine the actual property. Comparable sales, or comps The examiner will look at recent sales of similar properties, usually sold within the last year, to establish a reasonable cost for the home. Depending on the size of the home and current housing market, an appraisal can take anywhere from a few days to a few weeks, according to Tom Cullen of Cullen Real Estate and Appraisal Company , an appraiser for more than 30 years.
After the house is under contract, the lender will typically order the appraisal through a third-party appraisal management company AMC for an unbiased opinion. According to Cullen, appraisers will typically respond within 48 hours of being contacted. The response time also depends on the current housing market and interest rates.
Different loans can make the response time longer as well, Daniels says. For example, if there is an influx of VA and FHA loans, the appraisal time for those specific loans will be longer, as opposed to a conventional loan. Once you set up a time, the appraiser will stop by the property and look at the interior and exterior of the home , noting physical attributes, quality, amenities, size, and any extra features.
These questions and observations help the appraiser fill out the Uniform Residential Appraisal Report. The form asks for information about contracts, improvements, neighborhood characteristics, housing trends in the area, available utilities, measurements, number and types of rooms, property condition, and whether the property fits with the surrounding neighborhood. Finally, the appraiser needs to review the data to complete the appraisal report. Of course, not every appraisal fits neatly into the above timeline.
This is especially true in hot markets, and as of , much of the country is experiencing a buying boom. If your appraisal is taking a long time in , a combination of factors is likely contributing to the wait. One major issue is that there is a logjam for lenders: Banks are currently working through a ton of mortgage applications as home buyers look to close on new homes, as well as refinancing applications.
There simply aren't enough appraisal slots open right now to work through them in a timely fashion. There is also a lack of qualified local appraisers: Because of shifts to remote work and other changes to workflow due to the pandemic, there are reportedly fewer appraisers available to conduct in-home appraisals.
Lenders will try to address this shortfall, but for now, your best option is to have patience. You can also look into alternative means for assessing the value of the home. These days, you can also get your home appraised online. Also known as a "desktop appraisal," an online home appraisal determines the home value using information from the internet.
Usually, this method is quicker because no physical inspection of the property is required. This type of appraisal is more popular among home sellers than home buyers because lenders require a traditional appraisal before they approve your mortgage.
Our team of analysts will review comparable homes, market trends, and the details you provide about your home to give you an initial valuation. When determining the fair market value of a property, the appraiser usually looks at a mix of external factors, internal factors, and comparable sales. We've provided a few examples of each one below so that you have a better idea of how your home value will be determined.
Once the appraiser has collected all that information, they will compare your property to other comparable homes that have recently sold in your area.
0コメント