Do you have to disclose an appraisal?
A: An appraisal is generally considered a professional opinion of the market value of a property, not a fact. Although it’s both legally and ethically necessary to disclose a material fact, the same requirement doesn’t apply to an opinion.
Is the appraiser supposed to be unbiased?
The buyer’s lender needs to be on board because it’s the lender’s investment, too. But don’t fear: Even though the appraisal is meant to protect the buyer’s lender from a bad deal, appraisers are trained to be unbiased and ethical.
Is the appraiser supposed to be an exact science?
But don’t fear: Even though the appraisal is meant to protect the buyer’s lender from a bad deal, appraisers are trained to be unbiased and ethical. In fact, it’s a crime to coerce or put any pressure on an appraiser to hit a certain value. The appraisal process isn’t an exact science.
What happens if you get a low appraisal on your home?
Appraisers can make mistakes or have imperfect information. Better yet, present a factual case for a higher value to the original appraiser. He or she may agree with you and revise the evaluation. As a seller, a low appraisal, if accurate, means you will have to lower your home’s price to get it sold.
Do you need an appraisal if you have agreed on a price?
It doesn’t matter if you and the buyers have agreed on a price. The buyer’s lender needs to be on board because it’s the lender’s investment, too. But don’t fear: Even though the appraisal is meant to protect the buyer’s lender from a bad deal, appraisers are trained to be unbiased and ethical.
What happens if you don’t get an appraisal on your home?
Holding out for an all-cash buyer who doesn’t require an appraisal as a condition of completing the transaction is unlikely to net you a higher sales price. No one wants to overpay for a home. Unfortunately, if your surrounding area has experienced recent distressed sales, that can lower your home’s appraisal value.
What do appraisers look for in a home appraisal?
First, a home appraiser will pull comparable listings (called “comps”) from the nearby area. These are homes similar in style, location, and footage sold within the past few years.
Can a messy home affect an appraisal value?
Home appraisals won’t typically devalue your home because it’s messy — but a neat, organized home might help you. “Even if they’re not consciously aware of it, the appraiser might value (a messy home) a little lower,” Wiener says.
Can You challenge a low home appraisal based on errors?
“A challenge should be based on specific errors rather than opinions,” notes Stephens. When home values began plummeting in 2007, and real estate collapsed in 2008, the Home Valuation Code of Conduct (HVCC) went into effect in May 2009. This reform changed a lot of rules for appraisers, real estate professionals, mortgage lenders and homeowners.
