Within any mortgage situation, both the lender and the borrower want to ensure that the amount being borrowed lines up with the property value and expected expenses. A third party known as an appraiser is vital to this process, carrying out what’s known as an appraisal for any mortgage situation.
At Wasatch Peaks Credit Union, we have a wide range of mortgage loans available among our varied loan packages. Let’s go over how the appraisal works into your borrowing process, what’s involved in it, and how you can boost your appraisal if you’re on the other side of the table and selling, not buying.
Appraisal Basics and Cost
Appraisers are trained, objective parties who are tasked with coming to a home that’s set to be purchased to assess all areas of the property and its value. The appraiser will look at areas large and small to determine a general value range for the home, then confirm with both the lender and borrower that the amount being borrowed conforms to this value.
The cost of an appraisal can vary widely depending on the size of the property, the work required to appraise it and other factors. Smaller homes tend to run about $200 in most cases, while larger homes can cost double this or even more. “Fixer” homes on the market tend to require more expensive appraisals, as there’s more to look at. Generally, the buyer is responsible for appraisal services, though it can also be negotiated for the seller in some cases.
The appraiser is interested in the physical, structural elements of the home and property. They’ll make careful note of all elements here, including doors, windows, walls, ceilings, lights, and numerous other fixtures. They’ll also spend time noting the lot size and scenery, plus the location, home age, and size of the physical structure.
This is another area that will depend in large part on the particulars of the property being examined. If you have a smaller home or condo, an appraisal might take 30 minutes or less. If the home being purchased is larger, on the other hand, the appraisal could take several hours. In either case, expect the results of the appraisal within three days or less in most cases.
One friendly tip here for home sellers: There are steps you can take to boost your home appraisal. Make simple fixes to the physical structures of your home, including replacing carpets, fixing leaks, and patching any wall issues. If you’re involved in any remodeling process, keep the documentation from it so the appraiser can factor the cost into their assessment.
For more on home appraisals, or to learn about any of our home loan, car loan or other credit union service, speak to the staff at Wasatch Peaks Credit Union today.