Factors to Consider When Hiring a Home Appraiser

Appraisal, Lender, Market Analysis

When you are selling your home, there are many decisions that must be made. This includes whether to hire a broker, how much to list the home for, and which strategies to use to market the property. While a lender typically hires an appraiser as a condition to granting a loan, sometimes homeowners will hire their own appraisers prior to listing their homes. An appraiser’s job is to provide an estimate of the current value of the property by assessing the condition of the seller’s home and comparing it to recent home sales within a certain geographical proximity.

Lender’s appraisal. The lender hires an appraiser to assess the value of the home as a prerequisite to issuing a loan to the potential buyer. The appraiser is an independent third party that is hired to provide an objective account of the home’s condition. Generally, the borrower pays for the lender’s appraisal (unless otherwise specified) as part of the closing costs. The home must appraise for what the buyer is willing to pay in order for the sale to proceed. The lender’s appraisal is a significant step in the home purchase process- until the appraisal is completed, the purchase cannot proceed and the lender cannot guarantee funds to the borrower.

Buyer’s appraisal. A separate appraisal by the seller is typically not necessary, although some sellers decide to hire their own appraisers. There are a few reasons that sellers should consider whether an appraisal is really worth the money. Most real estate brokers can prepare an adequate market analysis in order to determine the home’s value. And if an appraiser is not familiar with the neighborhood, then his assessment may not carry much weight. Appraisers often need to contact agents to find out additional information about the home itself because they do not have access to relevant information. Another reason that sellers may question whether to obtain an appraisal is because of the variability among the appraisals. Appraisers often reach vastly different conclusions which may not be helpful to sellers in deciding on a sale price.

Finally, and perhaps most importantly, the lender will not rely on the seller’s appraisal in lieu of its own assessment. In addition, the buyer is unlikely to consider the seller’s appraisal dependable. When the seller hires an appraiser, that appraiser is not independent. A buyer might suspect (and rightfully so) that the seller persuaded the appraiser to inflate the appraisal value.

The experienced team of attorneys at the Law Offices of Mark Weinstein, P.C. can help you litigate your real estate claims. Contact Mark Weinstein and his colleagues at (770) 888-7707 or visit them at https://www.markweinsteinlaw.com to find out how they can advise you.

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