What Is a Home Appraisal?
A home appraisal is an assessment of the current market value of the residence and suggests the price a willing buyer would pay for a property.
The appraised value of a home is based on the property’s condition as well as prices recently paid for similar homes in the area.
An appraisal is a key step toward closing the sale of a home and assures a lender that the home is worth the amount being borrowed.
Ready to explore the value of your home and get started on your loan?
What do home appraisers look for?
An appraiser’s report will include a detailed description of the property.
- Interior and exterior condition
- Room count
- Improvements, repairs and renovations
- Plumbing and electricity
- Age of the structure
- Local market trends
- Condition of surrounding properties
Square footage, construction quality and recent upgrades also may be mentioned in an appraisal report.
How much does an appraisal cost?
Appraisal cost is usually $300 to $500 to be paid by the buyer. Because the mortgage lender typically requests the appraisal, the fee could be added to loan closing costs.
What happens if an appraisal is too low?
The appraised value could sometimes be less than the seller’s asking price.
If that happens, the buyer and mortgage lender may be able to negotiate a lower price to match the estimated value. A motivated seller may agree to an adjusted price or seek a second evaluation.
What is an appraisal waiver?
An appraisal could delay the closing process and costs extra money, so it is possible for it to be waived. The risk with an appraisal waiver is overpaying for a property that isn’t worth the asking price. And while an appraisal is not officially an inspection, it could identify issues with a home that the buyer or even the seller might not be aware of.
How to prepare for a home appraisal
If you plan to sell or refinance your home, there are a few steps you can take to prepare for your property appraisal.
- Freshen up the home’s exterior
- Take care of your lawn and yard
- Make any outdoor improvements
- Keep up the home’s interior
- Clean inside home and make necessary repairs
Keep in mind that the appraisers are heavily regulated at the state and federal levels and are required to be impartial, unbiased and compliant with Fair Housing laws. They also are required to be free of any interest in the transaction’s outcome so their assessments can be trusted by all parties.
Ready to explore your options now that you know why a home appraisal is necessary? A OriginPoint LLC fka Guaranteed Rate Affinity, LLC (“OriginPoint”) loan expert can walk you through the process and help you find the best options.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact OriginPoint for current rates and for more information.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. OriginPoint does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by OriginPoint. OriginPoint its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
Your journey home begins here.
OriginPoint's Same-Day Mortgage (aka “FastTrack”) promotion offers qualified customers who provide certain required financial information/documentation to OriginPoint within 8 hours of locking a rate on a mortgage loan the opportunity to receive a loan approval within 1 business day of timely submission of documentation and does not suggest that the borrower will receive funding on the same day as their application submission. For purposes of this offer, documents provided after 1 pm local time or on a weekend or company holiday will be deemed submitted the next business day. OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. OriginPoint reserves the right to revoke this approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation. Read and understand your Loan Commitment before waiving any mortgage contingencies. Borrower documentation and Intent to Proceed must be signed within 8 business hours of receipt. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Borrower's interest rate will depend upon the specific characteristics of borrower's loan transaction, credit profile and other criteria. Eligible borrowers who successfully provide all required documentation within 8 business hours will receive a $250 Closing Cost Credit applied at closing, no cash value, and may not be combined with any other Lender promotions, discounts, or concessions. Not available in all states. Restrictions apply. Visit OriginPoint.com/same-day-mortgage for terms and conditions.
**Eligible borrowers must qualify for a "Clear to Close Loan Commitment" ("CTC”). OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. CTC is subject to certain underwriting conditions, including clear title and no loss of appraisal waiver, amongst others. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Property must be eligible for an Appraisal Waiver and borrower must opt in to AccountChek for automated income and asset verification. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Restrictions apply.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact OriginPoint for current rates and for more information. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. OriginPoint LLC fka Guaranteed Rate Affinity, LLC does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by OriginPoint LLC fka Guaranteed Rate Affinity, LLC. OriginPoint LLC fka Guaranteed Rate Affinity, LLC its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. OriginPoint does not provide tax advice. Please contact your tax adviser for any tax related questions.
