Step 17: Guide to the Appraisal
Guide to the Appraisal
If the homebuyer is financing the home, they will more than likely be required to get the home appraised. Here's an article on what a home appraisal is.
The buyer’s lender will order and schedule the appraisal and it will usually be conducted on a weekday within 2-3 weeks of an accepted contract.
The appraisal will take 30 minutes to an hour and you do not need to be present. I will create an “appraisal packet” that will have comparable sales and any information about updates and/or upgrades you’ve done to the home since you’ve owned it.
Once the appraisal report is received, the buyer’s agent will let me know if your home appraised at or below the purchase price.
If your home appraises at purchase price, there is no further action needed and we can continue moving forward with the sale of your home.
If your home appraised below the purchase price, that muddies things up.
The lender will only loan money on the appraised value. If your home’s appraisal comes in low, the buyer will likely come back and renegotiate the sale price down to the appraised value. If you decide not to renegotiate the sale price, the buyer will either need to come up with the difference between the appraisal price and sale price or they’ll have to terminate the contract.
Ready to connect? Reach out! I look forward to helping you on this journey!
Monique Hanson is a REALTOR® serving the greater West Michigan area. Monique helps people buy and sell homes in Kent, Muskegon, and Ottawa Counties. You can contact Monique by calling or texting 616-805-9177 or emailing hello@moniquehanson.com.