10 Things First Time Home Buyers Should Know About The Appraisal Process

Design by Diana Walton- Houston First Time Home Buyer Specialist

Hello and welcome to Houston First Time Home Buyers Edition, formally First Home Houston (FHH). Although it is not always the case, an appraisal can be one of your best defense against over paying for your first home. If you are in full home buying mode, an appraisal will be apart of your home buying process. Here are a few things you should know about the process.

1. The buyer’s lender will order the appraisal.

2. The appraisal is used to determines the fair market value of your first home.

3. The appraisal protects the buyer.

4. There are 4 different types of home appraisals, the traditional in person appointment appraisal, a hybrid appraisal, the desktop appraisal, and the drive-by appraisal.

5. Buyer’s agent is not obligated to share the appraisal with the seller.

6. Lender is also not obligated to share the appraisal with seller.

7. An appraisal contingency allows the buyer to walk away from the purchase if the price comes in too low.

8. Appraisal cost will vary and is usually a part of your closing cost.

9. The appraiser will look at the condition of the home, upgrades, renovations, as well as the value of nearby homes, to help determine the fair market value.

10. The appraisal process from start to finish can take 7 days or longer.

Appraisers are trained to be unbiased, although that is not always the case. The color of your skin, religion, or any other factors not relating to the house, should not be a part of their decision making process. If you believe you've experienced appraisal discrimination, here are some options for reporting it.

• You can file a complaint with the Department of Housing and Urban Development. You can make a report online, via email, over the phone, or by mail. You can also contact your regional HUD office.

• Contact the Appraisal Complaint National Hotline and or Report housing discrimination in Houston or call 713.641.3247

As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana