You’re ready to sell, and a buyer’s dream of owning your home hinges on one crucial step – the home appraisal. But what’s it all about, and how does it vary with different types of loans? Stick around as we peel back the layers of a home appraisal.
Hey y’all! I’m Anita L Williamson, Associate Broker with James River Realty Group.
What is an Appraisal?
First, the buyer’s lender or financial institution orders an appraisal through a third-party company. Their job is to give the financial institution a feeling of security that your home is worth what the buyers are purchasing it for.
The appraiser has a few requirements as part of the appraisal report they submit to the lender. First, is to make sure the price of the home aligns with recent home sales nearby. Second, during the property visit, the appraiser actively seeks out any structural, safety, or health concerns that would necessitate repairs before closing to align with loan guidelines. The bank wants to make sure that the property is going to stay in great condition and doesn’t have any considerable deferred maintenance.
House Maintenance Tips
First up, is structural integrity. The appraiser is checking for solid foundations, walls without worrisome cracks, and roofs that promise to keep the rain out. They are ensuring your home is strong and secure.
Next, safety features. This involves ensuring that smoke detectors are functional, checking windows and doors for proper operation and absence of damage, confirming the integrity of electrical wiring, and securing handrails. These items are very important for safety concerns.
And finally health considerations—adequate ventilation, that there isn’t any mold or peeling paint, especially if it’s lead-based in older homes. These details matter because your home isn’t just a structure; it’s an investment in the bank. The lender doesn’t want to lend on a home that has deferred maintenance and could impact the home’s value if those items aren’t addressed promptly.
Appraisal Requirements
One very important thing to note is appraisal requirements are different based on the type of loan you are securing to purchase the property. For instance, FHA and VA loans come with a checklist that’s a bit more particular, ensuring homes meet their strict safety and health standards.
The essence of an appraisal—assessing the value of your home through its condition and safety—remains unchanged.
It’s key to remember that an appraisal is NOT the same as a home inspection. You do not want to leave any repairs in the hands of an appraiser to catch and require the seller to repair. Many times appraisers don’t require any repairs even when you think something should be flagged. If something you believe needs to be repaired, address it early, during your inspection period.
If the appraiser identifies repairs, they must address them before the lender approves closing, terming it an appraisal with conditions. After completing the repairs, the appraiser revisits the property to verify compliance with loan requirements. With this confirmation, the property can proceed to closing, and the keys can be transferred to the new buyer.
As you can see the appraisal process is a way to protect the lender’s investment. If you are looking for help navigating you through the process of selling your property give me a call.
I’m Anita L Williamson helping you establish roots in Central Virginia.
