How Does A Home Appraisal Work?

Everything you need to know about how a home appraisal works, the timeline, and how to save an appraisal if it comes in too low.
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A home appraisal is required if a buyer is purchasing a home with a mortgage. So how does a home appraisal work? An appraiser is someone who goes out to the property that is going to be purchased and is going to give an opinion of the value of that property. And Appraisal is not a home inspection. It will only tell the lender how much the home is worth for the lender knows if they're willing to give out a loan with the property as collateral. A home inspection is different because it helps the buyer understand the condition of the property instead of the value.
So what does an appraiser look for in a home appraisal? An appraiser is going to look at the exterior of the property as well as the interior to make sure that the value is supported by market comparable properties. The appraiser is also going to look at improvements that have been made in the home to see if there has been an increase in value since the last time I was purchased. An appraiser normally is going to use what's called a sales comparison approach to find the value of the property. The sales comparison approach to find the value of a home appraisal is where an appraiser looks at forty five different comparable properties within around a mile radius to see what the market normally has been paying for similar homes.
Do appraisers know the selling price? Yes, the appraiser usually will get a copy of the contract and will be able to see the selling price of long with any credits given to the buyer. The appraiser uses this as another datapoint to help them determine the value of the property. So, having a contract or a selling price is helpful for the freezer to understand what buyers are willing to pay for the property.
What happens if the appraisal comes in low? If an appraisal comes in low then buyers and sellers can challenge the appraisal through a reconsideration of value, or the buyers can renegotiate the price, or the buyer can come to the table with more money at closing .
An appraiser is first going to have the buyer pay for the inspection of the home, normally this is around $500. After that, the appraiser is going to contact the listing agent or the seller and schedule a time to inspect the property. After the appraiser inspect the property, the appraiser will send the full appraisal report to the lender and the buyer so they can see the condition of the home along with the value and all the supporting information as well.
A home appraisal is not too complex. It is mainly a multiple page document that helps lenders and buyers understand the value of the home with market support. This helps buyers not overpay and helps lenders not lend too much money. This helps both buyers and lenders be in a better position to sell if they need to future.
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[@adammonroe2679]

As an appraiser, I appreciate you making this video! Shedding some light on an important step of the home buying process.

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@mannypelayo7370]

In your opinion, how much does an improvement like a retaining wall in the backyard add to the value? We spent 20k, the wall created usable space and added 5000 sq/ft of sod. Your opinion would be appreciated!

[@daisyn1131]

Hi! I’m curious, do appraisers look at whether add ons on a home are non permitted? For example a sellers converted a carport into a un permitted garage? So technically the home does not have a registered garage

[@ragtie6177]

Adam. Please read my question above on appraising with no comps to speak of in the area. Thank you so much.

[@VitalGlory]

@@mannypelayo7370hey I know this is a really old comment, but figure I would answer anyways. One thing to note is the contribution value of improvements are often not equal to the cost of improvements. For example, an inground pool may cost $70-100k to install (Ontario Canada) but will only add about 25K in value because that’s what the market values it as. Landscaping is very expensive and it often adds very little value (unless extensive). Think of a buyer viewing your home. Will they see that retaining wall and say: ‘wow I’ll pay an extra $25K for that!’. Most likely not. It’s hard to say how much it really adds in value, but the return on the cost would be very little.

[@reinmac4559]

Your voice is very soothing Kyle. I’m binge watching your videos. Im a first time home buyer, pre approved for $400k but man , I don’t expect how tough the competition was buying house here in Washington state😩. There’s a lot of buyer due to low mortgage rates but not much house in the market, driving multiple offers for a house, about $20-40k above asking price .

[@WinTheHouseYouLove]

Thanks! It's tough out there, especially with such low inventory! Hang in there!

[@steevthetech]

Rein - you are so correct! We are building a new home in Washington and dealing with multiple offers has been crazy.

[@lovehappens8356]

We struggled too but then started to look at homes that had been a bit longer in the market

[@Rchandler0203]

Same thing in Ohio. Start searching for someone willing to sell for sale by owner

[@REI-20244]

Thank you so much for this. I’m a buyer and the the appraisal was completed yesterday. This video is so helpful in helping me understand the process. Thank you once again for this video.

[@WinTheHouseYouLove]

Glad it was helpful!

[@franklharbin]

I'm going to echo Adam a bit in that I am an appraiser, and this video is a great 30,000 foot view of an appraisal. However there are a few things I feel should be mentioned. 1. A one mile radius works great in Urban markets, but in more suburban to rural markets distances will increase greatly. 2. Replacement Cost Estimate is the Cost Approach to an appraiser, and is GREAT in residential markets IF the appraiser actually knows how to produce one. 3. I will only provide the appraisal to the borrower IF the lender tells me to in writing. Otherwise, it's the lenders job to get the appraisal to the borrower. Overall, great video.

[@WinTheHouseYouLove]

Who's Adam? Haha. I'm Kyle :) Thanks for the additions!!

[@franklharbin]

@@WinTheHouseYouLove, was referring to Adam Monroe that also commented.

[@Candy-yk5pg]

I got a good understanding of how the appraisal work. Thanks. Nice video.

[@WinTheHouseYouLove]

Glad it was helpful!

[@addy5424]

I’m waiting on the appraisal to happen and I am so nervous of the valie outcome. I’m hoping it comes out to be at our contract amount. 🤞🏽 Maybe less but we just need to move out from our rental asap.

[@KingLuck414]

Mann🥵

[@tituaaaa]

Any update

[@Sirg17x]

I'm in your shoes now. We are moving south for work and school. We are buying and in a time crunch.

[@user-homesales]

Can I buyer get out of a deal is the appraisal comes lower? And not loose they earnest money deposit?

[@ItsSwati-dr8no]

yes if you have put appraisal contingency in your contract, you can back out from the deal during that time till the appraisal contingency is valid

[@sarahcorona6673]

Can't believe I just found your channel after doing home buying research for over a year now! Been binge watching your videos! They have been very helpful!

[@WinTheHouseYouLove]

LOL! thank you!

[@guitarstar717]

This is the best video on this subject without the loud, fast talking bells & whistles etc.

[@WinTheHouseYouLove]

Glad you liked it! Thanks for watching. You can also check my new uploads. Hope you will like it as well. :)

[@vineelkumar517]

I really appreciate you for making the video. It’s very clear and easy to understand for a person who is new.

[@WinTheHouseYouLove]

Glad it was helpful! Best of luck!

[@rnswm.3084]

this was a really well made video, that earns a bug thumbs up from me.

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@pamelaj1596]

I listen to these videos for accurate information, but your voice is so soothing.

[@WinTheHouseYouLove]

Wow, thank you! I'm on live right now, see you!

[@GeoZero]

I found your videos very informative. I do want to add that now... 2 years after this video... a lot has changed in the appraisal profession. Increasingly appraisers are being restricted from doing independent appraisals by the GSE's. WHAT? Yes... appraisers have to back into generally accepted GSE guidelines in order to not raise red flags... that means staying conservative, not giving listings weight in final value, making sure line, net and gross adjustments are within the 10%/15%/25% "best practices" - as they are not "guidelines" yet everyone uses them - including state board investigators. Then there's the CU system. Appraisals better fit that and not raise any red flags. The result... a very UN-independent process where price increases are not generally tolerated by CU or GSE's and where appraisals are forced to conform to pre-determined price ranges and ratios. And to think that the last crash appraisers were blamed for high appraisals. Appraisers can only report what is going on in the market - they do not control the market. Yet, blame is already being placed on appraisers. The GSE are now pushing the desktop appraisals with 3rd parties doing the inspections YET the appraiser has all the liability. They really do hate appraisers.

[@mariabenning4255]

What an educational video this is! Lordy, you did what countless classes I've taken haven't explained very well. Thank you!

[@WinTheHouseYouLove]

Glad it was helpful!

[@kevinmilo3464]

Thank you so much for this. I really like how you made it easy to understand for beginners like myself.

[@WinTheHouseYouLove]

Glad it was helpful! Thanks for watching!

[@dhananjayauxd]

Thanks for sharing in details of the appraisal. I appreciate you. Excellent!

[@WinTheHouseYouLove]

My pleasure! Thanks for watching. :)

[@keatomatic8535]

What an excellent video, straight forward and informative. Thank you.

[@MikeyBizzle4Shizzle]

I have a residential appraiser interview tomorrow thank you this was helpful.

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@biglewdog411]

My appraisal came in exactly what i offered.. i thought it was supposed to be their opinion and and independent third party from the lender?.. how can that be a coincidence?

[@Muzzi.]

Your voice knocked me out 😴. I woke up and rewatched 😂. Thanks for the information

[@WinTheHouseYouLove]

Sorry! 😂 Thank you so much for re-watching!

[@ccwalker5157]

This video is very informative and helped me understand tremendously, thank you!

[@Dustviii]

Awesome video! it helped me understand the appraisal process.

[@WinTheHouseYouLove]

Glad you liked it!

[@Jimwin2]

If the appraisal is mainly for the lender. Why does the buyer have to pay for it? Seems to me they’d at LEAST pay half if nothing else.

[@SplashyCannonBall]

I have a house that was listed as a 3br but was a 2. And was listed 85k higher than all compared homes and yet no one could agree that it wouldn’t appraise. Total nightmare

[@WinTheHouseYouLove]

Sorry about that!

[@ChristinaBeall]

I am waiting on the appraisal step right now. I offered $5k over the asking price with a $2k appraisal gap. I just wanted to note that not all types of loans will let you offer an appraisal gap, according to my lender. I'm glad mine does, because I didn't know to ask about it. Also, my appraisal fee is $650. That seems a little high, especially for a house under 1,300 sq ft... in Mississippi. I was wondering if my lender could have price-shopped that a little more. Not sure how that works, and I'm too shy to ask at this point. Thanks for the info!

[@WinTheHouseYouLove]

Hey Christina! Congrats on getting to the appraisal step! All loans allow an appraisal gap since it’s not a feature of any loan type. Appraisal gaps are features of a purchase contract, so you can use them with any loan. $650 is average for an appraisal. Some go as high as $1,200! It just depends on the market and availability of an appraiser. Good luck with the rest of the process! 😊

[@ChristinaBeall]

@@WinTheHouseYouLove Thanks SO much! I'm learning a lot from your channel.

[@brandivanemon7930]

My SP is a property appraiser in the SW Florida area, owns his own company and I'm worried for him. I'm glad that I can get an inside look at his job. How many homes can be done on average in a week?

[@ray83baby]

The most informative video I've seen. Thank you

[@WinTheHouseYouLove]

Glad it was helpful!

[@jenniferlego4221]

Check out his other videos. Hours and hours of learning!

[@LeoSandovalOficial]

I've learn So much with you!

[@WinTheHouseYouLove]

Awesome! Thank you!

[@solmarisb]

Currently on that process . First time homebuyer, sooo nervous 😣

[@WinTheHouseYouLove]

Best of luck!

[@slimsal]

Is it true if the appraised value is higher than the list price but lower than my offer that I have to come up with the difference when purchasing a home ?

[@jessesanchez9529]

Thank you, great video. Great form of explanation.

[@WinTheHouseYouLove]

Thanks for watching. :)

[@gordoncavanaugh8744]

I can tell you what I do as an appraiser on getting an assignment. I read through the contract of sale looking for any special terms or conditions that would make the property more or less valuable. And I will comment on any items that are not standard to a contract. Items like furniture, cars, boats, a home based business or other intangibles such as a property associated with a vacation rental property such a linen, cookware, the web site and good will for a going concern business. These portable/chattel and intangibles and are to be excluded in the appraisal. The lender just wants the land and improvements valued. Next I review the property's past sales history and comment on how the market has changed since the property was last purchased or over the last few purchases. Then I will look at the median for similar properties in the last 90 days and see how the current offer falls within the range of similar properties. I will also look at the last sale of a similar property that occurred on the street and how market prices have changed since that purchase. Then I will look at the Sales to Assessment Ratio (SAR) for all properties in the area and comment on the subject property and its assessed value relates to the SAR. Only after doing all the above will I begin to select comparable sales in order to present a sample of the market that in my judgement captures the peculiarities of the property being appraised. Then I will reconcile all of this information taken from the market place to formulate a market value range that the property falls within. If the offer on the property is within this adjusted value range I will most often conclude in the report that accepted offer is fair, equitable, reliable and reasonable for mortgage financing. If during my research I determine that the market for the property is weak or that I had difficulty in finding similar current sales I will make that comment to the lender as well and explain that the margin of error in the final estimate is greater than that of a typical property. If the offer to purchase falls outside the range, I will revisit all of the above and dig deeper into the months of inventory, sales to new listing ratio and days-on-market. That information is usually needed to be conveyed to the lender in a very hot market with rapidly rising prices. Especially when properties are selling in a very short period of time and having multiple offers presented or the property is being marketed in a non typical manner such as a blind auction that is meant to entice multiple offers at the same time which could lead to a buyer over paying for the property. Then it is up to the underwriter/lender to determine if the property meets their guidelines or if the asset backing the loan is too risky to take on without additional collateral or covenants from the applicant. If you want to speak with the appraiser then the appraiser has to get permission from the lender to discuss the report with you. Any emails or telephone conversations will be included and retained in the appraiser's work file. Any exclusive sale information provided by an agent will go into the work file including the agents name and how much reliance the appraiser has made that this agent presented information is correct. It's a litigious world out there. If I have to go to court to defend an appraisal I am going to be bringing others with me.

[@WinTheHouseYouLove]

Wow! Your job is really an important part of home buying, thanks for sharing your views and information. :)

[@savaven1]

this is solid to the point info, thank you.

[@WinTheHouseYouLove]

Glad you think so!

[@robbyrob8349]

I'm hoping that the appraisal comes out to be the contract amount. I ain't accepting a lower amount than the contract offer on selling my home.

[@KaiSosceles]

If the appraised value comes back as higher than the purchase price, do property taxes get assessed based on the appraisal or the purchase price?

[@achavez78]

Update- right now here in Arizona appraisers are not entering homes, they are just doing drive-by appraisals. Also, how does the appraiser fairly take into consideration what the proposed sale price of the home while factoring the appraised value? Surely the lender discloses the sales contract to the appraiser. It’s discouraging knowing the appraiser is working for the lender and surely this affects their decision making.

[@WinTheHouseYouLove]

Normally the appraiser gets to see the purchase contract because it's a data point. What a buyer is willing to pay for a home is a large considering for how much the home is worth on the market. Because, if someone is willing to pay X for it, the chances are that it's worth very close to X to the market. The appraiser actually doesn't work for the lender. The appraiser is required to be independent based on AIR compliance laws. Appraisers are assigned on a round-robin system from a pool of pre-vetted appraisers and they get paid no matter what value they appraise the property at, even if the deal falls apart because of the appraiser.

[@robbnagle]

The appraiser is going to appraise the home based on recent sales activity..... NOT on the contract price. I've done 10 appraisals for purchases this week and 3 of them didn't appraise for contract price. Those 7 that did appraise at or above contract price may think the appraisals just "Hit the number" but those other 3 know that Us Appraisers aren't messing around! The existing market data determines the trends and values.

[@robbnagle]

Oh, Also, most Appraisers are simply self employed contractors such as I am. I work for almost 50 different banks and lending institutions. I don't get pressured by ant of my clients to 'help their deal close', and if I did, I would fire them/stop taking their assignment requests. Good Appraisers are still unbiased and professional, even when people complain because they didn't get 100% of what they wanted. People complain the values are high, low or whatever, but the data is always contained within the report. If you have a legitimate complains about the quality of work, the comps used or the value being wrong or biased, you can complain to the state license department and the bank as well.

[@feliciaboaz]

How do appraisals work if the seller is "Selling As Is". We found our dream home a few weeks ago and this is the case with the seller. I am worried that since we will be first time home buyers that we will lose the home due to it being sold as-is. The home was used as a rental property and the renters did a number on the house and that is why they are selling it as is. PS love your videos they have been a wealth of knowledge for us as we try and move forward with the home buying process.

[@WinTheHouseYouLove]

If it's being sold "as is" and the appraiser requires repairs to be done, you'll have to front the money and pay for the repairs. Then, the appraiser will need to do a final inspection to make sure the repairs are complete. It's crummy when a seller does this, but hopefully the repairs won't be too costly if any are needed to be done.

[@Scottrose3]

@WinTheHouseYouLove so does the appraiser actually set foot on the property? We are in a situation similar where we were/are the renters and the owner wants to sell as is but refuses to address or lower the price from $200k due to standing water and mold and such in the crawl space and is essentially selling as is. They wanted to list it at $219k but since we rented for 5 yrs they’re willing to drop to $200k even though the comps are $175. What happens if the lender wants the price lowered but the seller refuses? Are we forced as buyers to cover the difference?

[@Scottrose3]

The seller even refused to pay the realtor’s fee. We had to.

[@jeromerodriguez8346]

Man that was some great information thanks 🙏

[@WinTheHouseYouLove]

Wow! Thank you!

[@qt6943]

Thanks a bunch 🙂! I learned a lot with your video 👍👍👍

[@WinTheHouseYouLove]

Glad it was helpful!

[@Daniellee121]

Thank you so much for putting this information. I am about to make an offer as a home buyer. Question: If the appraisal price fell short of an accepted offer price, and the seller does not want to lower the listing price, would I be able to back out of the deal, getting the full refund of earnest money?

[@semajd5995]

Sure as long as you didn’t waive you’re appraisal contingency. Many people are waiving that these days. I wouldn’t!

[@sandragilmore7716]

Thank you very well explained!!

[@WinTheHouseYouLove]

Glad you enjoyed it! Thanks!

[@Biancamalanis]

This was helpful! Thanks!

[@WinTheHouseYouLove]

Glad it was helpful!

[@kscher]

Very informative and I really appreciate your insight.

[@Earthlove-bc]

Opinion ? There are rules and regulations for appraisers otherwise they could be subject to fraud …

[@bradical07]

So if the appraiser can't access areas in the home, the buyer is hit with another fee if the appraiser has to come another day? But it isn't the buyers home to make those changes. Seems unfair.Thanks for the clarification 👍🏾

[@WinTheHouseYouLove]

If I were the buyer’s agent, I would negotiate for the seller to pay for the reinspection

[@PlatoonDaddy603]

Not true VA has best option, its called Tide Water, it gives you three chances to beat the value if it comes in lower.

[@WinTheHouseYouLove]

Often doesn't work from the many I've seen

[@antonioreyes2692]

Just had my appraisal done recently and my lender informed me it came in lower, but still was not told yet on how much the appraisal amount came in due to release of the appraiser’s report.

[@WinTheHouseYouLove]

Oh no! They should be telling you soon

[@judylee3589]

I have a question. You stated that the buyer pays for the inspection but if the house has say, a blocked attic and he cant get in, then he leaves and charges another fee to come back? Is that correct? I'm new at this and just trying to get the picture.

[@WinTheHouseYouLove]

Since this video is on appraisals, I'm assuming you're talking about an appraisal inspection. Yes, the home is supposed to be accessible. If the appraiser cannot access parts of the home, they will have to come back when cleared and charge another trip fee. The appraiser will not take on the legal responsibility of moving the seller's property, even if just a box.

[@shanehanes7096]

My lender waived the appraisal. I have a conventional loan with 20% down but my loan officer told me that they waived the appraisal. I think underwriters did a desk appraisal? I’m in the Northern Kentucky/Cincinnati market. Would it be a good idea to have an appraisal anyway?

[@mprrx]

Question: so a FHA appraisal came to a full value but the same house did 14,000 lowe in a VA. Anyway I was play by my listing agent, I was play again by this same listing agent. Yes, got fired. Denied knowledge of whom the appraisal was on the FHA. Both stick for 6 month, but why a FHA comes to value but not a VA?

[@BaileyHorse]

How are the appraisal costs determined?

[@TFerns194]

Thank you so much , you’re awesome !

[@WinTheHouseYouLove]

You're welcome, and thank you for watching!!

[@melissab9285]

Currently under contract now... my realtor told me that the house was appraised at 4k more than purchase price. Then he said the underwriter may have an issue in regards to some external rot on the wooden siding. He said we could fix it quickly and have it appraised again. Now I'm confused... isn't the underwriter just looking to make sure the appraisal came in at or above the sale price? Sound right to you?

[@WinTheHouseYouLove]

No, the underwriter wants to make sure the value and condition are good. They're using that home as collateral for the loan, so they want to make sure it's in acceptable condition

[@melissab9285]

@@WinTheHouseYouLove Thank you!

[@myson04]

Good information, I've always wonder about this process.

[@WinTheHouseYouLove]

Thanks for watching!! Kyle Seagraves → winthehouseyoulove.com

[@Ja31982]

Ty so much for the info! I love your vids!

[@WinTheHouseYouLove]

Thanks for watching!

[@juventusfc0520]

I just bought a house and the mortgage company said they didn't need to do an appraisal I was all set for the financing

[@newpanditjee]

How do kitchen or bathroom upgrades tip the scale in a for appraisals? A lot of sellers spend 50K or 60K upgrading their bathrooms and kitchen thinking they will recoup the cost with a higher sale price. Is that smart?

[@ernzcustomz]

Whatever the appraisal comes in at for example, 200,000 and you agree to pay the asking price of 210,000 "appraisal gap" . Is the bank lending you only what the appraisal comes in at like the 200,000 ? and is your loan monthly payments based on 200,000 or 210,000 ?

[@gizmo928]

what happens if the buyer is already living in the home and is just purchasing it from the owner who doesnt live in the home. I imagine the place will still be tidy but will it interrupt the appraisal with furniture and living people inside the home?

[@WinTheHouseYouLove]

It will need to be accessible to the appraiser

[@Hhopiuygv]

Great needed to know thanks

[@WinTheHouseYouLove]

Glad to help!

[@LLG47]

Your 1 mile point isn't really correct, you are supposed to be looking at the market for prospective buyers. While that could be a small neighborhood of similar homes, it could also be as large as an entire state for a specialty property. In rural areas a one mile radius would not work, and it wouldn't be right to limit yourself to one mile even if the housing density is high. You have to ask yourself if a potential buyer would realistically limit themselves to a 1 mile area. The answer to that is most likely no.

[@AmandaA-zf3qo]

I have a house that needs refinancing. It's gotta be worth over 85k it's a cabin style on 2 acres. Things that worry me about appraisal. We are in the middle of remodeling. We inherited the home. We took out the old cabinets and right now have crappy ones, they work but there's no countertop. The walls and ceiling and floor aren't done. We have the materials sitting around as we slowly work on it. This week we put up part of the ceiling, it's a very different design with wood paneling that's going to take a while. The home doesn't have any major issues. We need to finish the walls, we have them up and they need putty and paint etc. We're only financing 30k. Im wondering your opinion on this.

[@luwilliams1059]

Explains how sellers are getting over on buyers right now or adleast trying too. I wish everyone would just stop for a moment people are so greedy right now its ridiculous!

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@richeneljeanpierre2205]

Great video. Thank you Sir.

[@WinTheHouseYouLove]

Hi Sir, glad you liked it! Thanks for watching! :)

[@jose09841]

What happens when the Market has changed within the last 3 months?? Home values have dropped dramatically within the last 3 months, so will an appraiser still use comps from 6 months ago?? I don't think they should do this.

[@catherineostrom7575]

I know this was over a year ago but, I just paid $700 for an appraisal of a small home on a 5000 square foot lot. Others in the area are up to $850.

[@WinTheHouseYouLove]

Thanks for watching!

[@jilliannmccormick3402]

So when an appraiser is doing sales comparison, they look at the listing price, not the asking price?

[@MrDarthvis]

Do appraisers know the price the buyers offer before hand? Our offer value happened to be right on the mark with appraiser value.

[@GeoZero]

Yes. Appraiser's are given a copy of the home purchase contract.

[@Goodmorningworshippers]

Thank you for your videos. Are the appraisals based on homes that are currently listed or homes that have closed.

[@GeoZero]

Homes that have sold, and must be within a neighborhood area and similar (i.e. comparable). Listings can be in the appraisal yet are seldomly given weight.

[@franksanchez9355]

theres a triplex that I want to buy but I know for a fact its not worth what they are asking should I still offer what they are asking and when the appraiser comes out and comes in low can I back out the deal or renegotiate the deal ?? I know ill loose my money on the appraiser but will it be worth it ? its a nice triplex but the guy who owns it bought it in 2018 for 365k he only put new windows into the property and now in 2020 only two years later he's selling it for 575k ! Im from California its a hot market where I'm at but the comps my realtor pulled up are not supporting the price

[@WinTheHouseYouLove]

You can always renegotiate if the appraisal comes in low, but no guarantee the seller will be on board

[@franksanchez9355]

@@WinTheHouseYouLove can't I ask my realtor to ask them if an appraiser comes low if they will come down before hand so I don't waste no ones time

[@deangelacourtney1171]

I am currently in contract to buy my first home and my realtor put in my contract I pay whatever the appraisal is. So if it came back lower than the asking price I just pay the lower price.

[@susanazapata9205]

Can they use my supposed sales priced they doubled my appraisal based on that , iwas told someone called in or disclosed my sales priced, know in arbitration, but all the other properties around still have the original value, i think there trying to get me first then get them on the bases of my sales price

[@jeyashankarmurugesh3560]

How does this work for a new construction and no sale happened as the houses are getting built and lot premiums are very different based on when you get in to a lot

[@WinTheHouseYouLove]

Usually will be a cost approach appraisal

[@ncooty]

You say that the appraisal isn't an inspection, but then say that a major focus is on health and safety (including items that would need to be fixed before sale), which are code-related issues. That's not their purview. Appraisers aren't generally in a position to assess code violations. They're just supposed to estimate what price will be reflected in the market.

[@WinTheHouseYouLove]

It's not an inspection from the viewpoint of a buyer. Health and safety are critical to underwriting the collateral value of a home. The appraiser doesn't care about code; however, each loan type has its own requirements for the condition of collateral they are willing to securitize. The price reflected in the market is significantly based on condition.

[@exinmate]

For mortgage refinancing to lower monthly rate, does the appraiser perform the same task to determine the value? I'm worried the interior condition of my house may not qualify me to refinance. Hope that makes sense. I'm new to refinancing.

[@WinTheHouseYouLove]

Yeah, normally it's a full interior and exterior appraisal. If your home appraised when you purchased, you shouldn't run into an issue unless the inside of your home is now destroyed for some reason.

[@joeenglert]

had an appraiser come in today on my as is home,,,he was only here for 15 minutes,,,seemed way too short

[@kittyland16]

Thank you for this video❤

[@WinTheHouseYouLove]

My pleasure! Thanks for watching. :)

[@liveforkingjesus]

dude i seriouslly love you bro

[@WinTheHouseYouLove]

Thank you so much for watching!

[@Integrity.is.everything]

Just watched a couple videos about how racism can affect home appraisals. This video was recommended by KZbin. Good info

[@WinTheHouseYouLove]

Ugh, yes. Racism is still a huge problem in home appraisals

[@hectorrosado5807]

Thank you for your video. Can you inform me where can I take the course/certification in Florida ?

[@WinTheHouseYouLove]

You're welcome! you might want to check this link, hope it helps: www.myfloridalicense.com/dbpr/re/documents/RERDrequirements.pdf

[@c19commander44]

A seller wants $139,000 for his house, what happens if the house is valued at $125,000 ? the seller dont have to sell it for $125,000-??

[@WinTheHouseYouLove]

kzbin.info/www/bejne/Y6fKeImBqZudeMk

[@Mimi-wr7bv]

I have a question. Is it better if the annual house appraisal comes in higher or lower? I'm talking about the annual appraised value report not when buying/selling a house? I can't seem to find an answer for this on the internet.

[@WinTheHouseYouLove]

I'm unfamiliar with an annual appraised value report. Do you mean the assessed value for taxes? If you mean assessed value, lower is better because you pay taxes on the assessed value. Lower value = lower taxes.

[@1mz0qpal]

Hey thanks for the content. I have a question on how to proceed. Currently my father is in charge of the mortgage and I saw he has a high int. Rate and we're going to refinance with a lower rate. HOWEVER, my concern is about the appraisal. We plan on fixing the house but aren't sure to do this before the appraisal as we may end up having to pay more for the house. Should we wait to do the home remodeling after the appraisal?

[@drewcoleman738]

Appraisals are not pubic record, but improvements can add to value. Remember, take half off what you pay for improvements, (labor) then divide by 5, and that is what the added value to your home is worth.

[@yilienacotilla1396]

How many days have the appraisal to give the report?

[@BronzeGirl]

Answered my questions

[@georgeschlagel3058]

Appraisers are supposed to be licensed. I paid for an appraisal on a refinance only for tax purposes. The lender ordered it but said it would of been waived. loan to value 250k on a 650k home. The first thing that was strange is now the lender is holding up closing because of length of time for the appraisal? I paid 650.00 for the appraisal and there was several errors like missing a 3 car garage for a 2 car and a walk out basement. They only listed 3 comps one several miles away. There are 2500 homes in my HOA in hot market all less than a mile similar plans. I feel they compromised the job because they were rushed and it would have no impact on the loan being approved. What is my recourse?

[@WinTheHouseYouLove]

Appraisers are legally required to be licensed. Hmm, interesting that there were so many errors. All of those errors will have to be corrected before the loan is closed. I would have taken the appraisal waiver on a refinance. You only need enough value to get the loan, it doesn't really matter after that what the value is. Then, if you wanted an appraisal for tax purposes, I would have hired an independent appraiser.

[@charisetros5590]

Does a state tax appraisal count?

[@TheControversialChronicles]

Is it reasonable to assume that different appraisers will provide different amounts?

[@WinTheHouseYouLove]

It's not Plan A and not guaranteed. However, we've done it before several times and it has come in higher.

[@ismavalencia7029]

hello, what if appraisal has a lot of wrong information like, says it has fireplace, central ac, patio/deck, porch, washer/dryer, dishwasher, well water instead of city, and doesn't have any of that? seems like they are inflating/manipulating the price to match purchase price.

[@WinTheHouseYouLove]

Wow! I suggest that you talk to your lender/ agent and have it appraised properly. Happy 4th July!

[@ragtie6177]

Our appraisal is in a couple days. The problem (Or not) is that the house we are under contract with is very unique as it sits in a very historical location, close to a major university. However, there are no comps within a mile that have 6 bedrooms & 2.5 bathrooms on 4 levels. It also sits on one of 2, side by side lots that are used as one extra big lot. All the other homes are single or 2 story, 2 bedroom 1bath or, 3 bedrooms 1 bath (possibly & 1/2 or 2 in a very few) and sell for $120,000 to $160,000. So my question is simply this: "How can this unique home be appraised fairly?"

[@WinTheHouseYouLove]

Unique properties can be tough to appraise! The appraisal may look at the cost approach to find the value

[@ragtie6177]

@@WinTheHouseYouLove I appreciate your swift (& honest) response. Thank you.

[@iamjasmine2415]

Hi how does an appraisal work if I’m not selling my home? I purchased with cash for $2000 and recently finished rehabbing. I’d like to get it appraised to pull out equity.

[@WinTheHouseYouLove]

Great! It will work in a very similar way. The lender will order an appraisal and an appraiser will come out to your home to verify the value for the loan. In some cases, you might get an appraisal waiver meaning an appraisal will not have to be done at all. Talk to your lender to see if that's an option :) Usually, the lender will need to run Freddie Mac's LP underwriting AUS instead of Fannie Mae's DO. They'll know what that means if you tell them

[@iamjasmine2415]

Win The House You Love Thank you for responding so quickly! This is incredibly helpful and your video is extremely informative!

[@WinTheHouseYouLove]

@@iamjasmine2415 You're welcome! Thanks so much!

[@evansrealtygroup]

This is a great video!

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@xw7239]

thank you so much

[@sherih8879]

Is this similar to land appraisals?

[@WinTheHouseYouLove]

Hi! For land, it's called Land Survey.. it's different. :)

[@himanshisachdeva1700]

Thank you so much for the video. One quick question, does the appraisal have to come through to match the loan amount or the purchase price?

[@WinTheHouseYouLove]

Ideally. Best of luck!

[@MP-bk9oi]

Thank you so much👆🏾

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@Kurdishgirlseyrahn]

so buyer pays $500. how about tax fee and lawyer fee?

[@WinTheHouseYouLove]

There are still other closing costs: kzbin.info/www/bejne/q2are4R7q8udZposi=ICrOUILFknXhbPHL

[@eljuanes8323]

So I am refinancing my home and I am getting an appraisal. I recently did a patio in my backyard would that affect me if I didn't get with my HOA for the upgrade

[@WinTheHouseYouLove]

I believe you need to an appraisal if you refinance and I believe home improvement should be documented. But, you can always ask your lender about this. Best of luck!

[@user-in7xg8xb3x]

For a new home, we do not know the exact date of closing yet. It will be at least 6mo from now. My lender who has provided us the preapproval say that we have to pay the appraisal fee now t keep our loan application active. We have not finalized the final lender yet as we were planning to do loan shopping once close to our closing date in next 6mo. Is this a federal requirement to pay appraisal fee upfront to keep loan application active even if we do not have any idea of closing date. I would really appreciate your expert opinion. Thnak you

[@WinTheHouseYouLove]

I just recorded a personal video reply for you: vid.us/kstsll

[@jamesakwarandu8264]

Hi! Can you talk a bit about how the earnest money deposit works? Do you have to have it and what's the cost of it?

[@WinTheHouseYouLove]

Oooh, that would be a great video topic! Added to my list :)

[@AcousticGString]

I just refinanced and had an appraisal today that was sent by my lender. Initially they did it when the house was empty and it was valued 23,000 over what we paid...my question is, is it normal for the apraiser to take photographs of everything? Our bedrooms etc? That's all he did was walk around and take pictures of the room's, it didn't seem right to me. Is this normal?

[@WinTheHouseYouLove]

Yes, they have to take pictures

[@misao3004]

Great job

[@WinTheHouseYouLove]

Thank you!