14 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), where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining their first home.
Although it is not always the case, an appraisal can be one of your best defense against over paying for your first home. Now that 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 a home
3. It protects the buyer
4. There are 4 different types of home appraisals.
5. The traditional in person appointment appraisal.
6. A hybrid appraisal, the appraiser will use photographs from the listing along with an in person visit.
7. Desktop appraisal is done on the computer, using public records, and real estate comps.
8. Drive-by appraisal.
9. Buyer’s agent is not obligated to share appraisal to seller
10. Lender is also not obligated to share appraisal with seller
11. An appraisal contingency allows the buyer to walk away from the purchase if the price comes in too low.
12. Appraisal cost will vary and is usually a part of your closing cost.
13. 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.
14. The appraisal process from start to finish can take 7 days or longer.
Although you and the sellers have agreed on a price, as you can see, the lender also need to agree, and that is where the appraisal comes in. Appraisers are trained to be unbiased, that is not always the case. The color of your skin, religion, or any other factors not relating to the house, should not be considered. 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
