The home appraisal is a key moment in the home buying process that most people overlook. In this video, we explain and answer your most pressing questions.
Our guest for this video is appraisal expert Bill Pfrommer
Here’s an overview:
APPRAISAL: A profession opinion of a home’s value.
NOT AN INSPECTION
QUESTION #1 WHAT’S THE DIFFERENCE BETWEEN AN INSPECTION & AN APPRAISAL?
An INSPECTION is an in-depth analysis of the state of a home. Inspectors crawl in the crawlspace, climb into the attic. They analyse every detail of the home and tell you, the buyer, what issues there are.
An APPRAISAL is a much more surface analysis of the home for the purpose of finding its value.
#2 WHY GET AN APPRAISAL?
Appraisals are ordered by the bank you’re borrowing money from. They want to make sure that they are investing a reasonable amount of money. In fact, the appraiser doesn’t report to you at all. They only report to the bank. However, YOU have to pay for the appraisal.
#3 HOW IS THE VALUE FIGURED?
Appraisers study a home’s value based on comparable homes close to it, its state of maintenance, what it would cost to replace, and may other market factors.
#4 DOES THE APPRAISER KNOW THE SALE PRICE?
Yes, the appraiser is required to know what a house is being sold for by looking at the purchase agreement
#5 DO I HIRE THE APPRAISER?
No, the mortgage lender will hire them
#6 DO I SCHEDULE THE APPRAISER?
No, the Appraiser will contact the seller or their realtor
#7 DO I HAVE TO BE PRESENT FOR THE APPRAISAL?
No, but you can attend if you’d like. Just understand that the Appraiser can’t tell you anything.
#8 WHEN DO I PAY THE APPRAISER?
The cost is a part of your closing costs. You’ll see it as a line item on your closing statement (which you should go over with your Mortgage Broker the day before closing).
How to find Bill Pfrommer:
[email protected]
Want more? Our New Home Buyers Guide Workbook & Course will walk you through all 9 steps of the home buying process. Get them at https://www.newhomebuyersguide.net
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