What is an appraisal?
An appraisal is an ‘opinion of value’ that is completed by a professional appraiser, licensed by the State of Nebraska, who visits and inspects the size, condition, function and quality of the home. There are a few steps in the process. First, he/she comes to the property and inspects the home. Next, the appraiser will research similar homes in the area and compare recent sales to determine a fair market value. The appraiser will then give a final appraisal report with all the data and research to issue a final ‘opinion of value’. An appraisal helps assure you and your lender that the value of the property is based on facts, rather than the Seller, or Listing Agent’s, opinion.
Who selects the appraiser?
The Buyer’s lender will initiate the appraisal order. However, a licensed independent professional appraiser selected by the Appraisal Management Company (AMC) conducts the appraisal. By law, the appraisal must be ordered by an objective party (AMC) resulting in the selection of an appraiser who has no interest in the outcome of the appraisal.
What are the main steps in an appraisal?
- The Inspection – a licensed appraiser comes to the property and inspects it to determine fair market value
- Comparables – the appraiser researches similar homes in your area and compares recent sales (preferably within 90 days) to determine market value.
- Final Appraisal Report – using the data gathered from the inspection and comparables research, your appraiser issues a final appraisal report.
How much does an appraisal cost?
The appraisal is a cost to the buyer. The cost is normally $450-$500. The lender will likely request a deposit for this cost. Since there is a ‘debit’ column on your Closing Statement for all costs associated with your loan, there will be a ‘credit’ that also appears on this statement for your deposit.
Who receives a copy of the appraisal?
For a typical home loan (that is, a loan secured by a first mortgage on your residential real estate), you are entitled to receive a copy of the appraisal. Keep in mind that the appraisal belongs to you, and is not shared with the Seller. You should receive a copy of the appraisal soon after it is delivered to the lender in complete form—no later than three days before closing.
Questions? Feel free to contact us at 402-671-0400 or via www.OmahaHomeEquityGroup.com