FREQUENTLY ASKED QUESTIONS (FAQs)
What should I do to my home to prepare for the appraisal inspection?
Although first impressions can matter every day clutter does not usually adversely effect the value of your home. However, defects that relate to habitability, such as leaking roofs, broken windows, and plumbing or electrical problems do affect the current value of your home. Furthermore, being in the process of remodeling or updating your home, including kitchens or bathrooms that are not fully functional, exposed subflooring, or additions that are under construction also affect the current value. It is important to note that lenders will require you to repair the defects or complete the work before they will fund your loan.
Does the appraiser have to look in all of the rooms?
Yes, if the appraisal assignment requires an interior inspection the appraiser will have to look in every room.
Will planned improvements increase the appraised value of my home?
The appraised value of your home is an “as is” value as of the effective date of the appraisal report. For mortgage transaction purposes this is the date of the appraisal inspection. Therefore, planned improvements, even if they are to be done the following day, will not increase the appraised value of your home.
Who sets the fee for the appraisal?
Appraiser’s fees are like Realtor’s fees. Although each are free to charge whatever they want, the fees are generally established by industry standards. Remember, you get what you pay for.
Who actually orders the appraisal report?
Lenders will not accept an appraisal report that was ordered by the borrower. The actual order must be placed by the loan officer, who is then considered the appraiser’s client.
How do I get a copy of the appraisal report?
The appraiser is only allowed to send the report to the client that ordered the appraisal. However, the lender is required by law to provide a copy of the appraisal report to the borrower.
How long is the appraisal report good for?
This is up to the individual lenders. Although it can vary, it is usually 90 days.
Can I take the appraisal report to more than one lender to see who has the best deal?
Although you could take your copy of the report and “shop” it around, lenders will not accept appraisal reports unless they are named on them as the client. Appraisers are not allowed to just change (retype) the clients name on the report. To change the clients name the new client must submit their own order for the appraisal. The additional fee the appraiser may charge depends on the specific requirements of the new client.
Can I ask the appraiser for a higher or lower value than the current market value?
Appraisers are required by law to be unbiased and to report only the actual market value. An honest and ethical appraiser will not be influenced by such a request from their client or the borrower.