WHAT TO EXPECT WITH THE APPRAISAL:
1. Your lender will order the appraisal.
2. On the day of the appraisal, a good listing agent / Realtor will generally attend the appraisal. The Realtor will provide the appraiser with an appraisal package. The package could include plats, surveys, deeds, covenants, HOA documents, floor plans, specifications, inspection reports, neighborhood details, recent similar-quality comparable properties, detailed list and dates of upgrades, remodels and costs, and energy- efficient green features. The agent will meet the appraiser at the property and answer any questions an appraiser might have about the property or neighborhood. Then agent will then allow the appraiser the necessary space and time to complete the inspection.
3. Regulations allow real estate agents, or other persons with an interest in the real estate transaction, to communicate with the appraiser and provide more property information, including a copy of the sales contract. An agent, or other persons with an interest in the real estate transaction, may not intimidate or bribe an appraiser and an appraiser may not disclose confidential information at any time.
4. The Government Sponsored Enterprises (GSEs) require that an appraiser analyze the sales contract and the appraiser must confirm analysis of the contract on the appraisal report.The appraiser looks at the terms of the sales contract and compares them with what is typical in the market. The sales contract has information such as the interest rate, the down payment amount, seller contributions or other personal property items that might be included in the sale. The appraiser must also verify if the property seller is the owner of public record.
5. The turnaround time for a full residential appraisal report varies depending on the complexity of the assignment. But, it typically is returned within a week.
6. Once an appraisal assignment is completed and sent to the appraiser’s client, typically the lender, an appraiser may not discuss the results of the report to anyone but the client who ordered the appraisal, or parties designated by the client. In order to ask an appraiser to correct errors in the appraisal report or consider more information, you must contact the appraiser’s client in writing.
7. The Equal Credit Opportunity Act (ECOA) requires creditors to automatically send a free copy of home appraisals and all other written valuations on the property after they are completed, regardless of whether credit is extended, denied, incomplete, or withdrawn.
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