The Home Appraisal Timeline in Arizona, Explained
Everyone seems to be buying a home right now as the real estate market booms across the country.
But what you’ll discover once you jump in is how complicated the home-buying process actually is. Without an experienced lender keeping in close contact, you can feel lost getting pre-approved for a mortgage all the way to closing.
One of the last steps in purchasing your dream home is the professional appraisal, which all lenders require. It ensures your home is worth the value the seller claims and protects you from a poor residential investment.
But what is the specific timeline for home appraisals and when in the home-buying process do they occur? Our team would be glad to walk you through these questions and more.
How does the home appraisal process work?
To buy a house in Arizona, you need to obtain an independent appraisal of the home’s value.
Every mortgage lender requires an appraisal to ensure they don’t provide a mortgage loan for more than the home is worth. This protects them from default and you from a home investment that loses equity in the future.
If you’re buying a home with cash, you don’t have to complete the appraisal process. However, all other loan types, including FHA Loans, VA Loans, and Construction-to-Permanent Loans, ask you to go through this step.
The buyer usually pays for an appraisal, which can cost anywhere between $300 and $500, depending on the complexity and size of the property.
How long does a home appraisal take?
The home appraisal process takes anywhere from a few days to several weeks depending on the size of the property and the state of the real estate market. However, we’ve found that the average appraisal takes about a week.
If no problems arise as a result of the appraisal, you can expect to close on the home within about two weeks. Keep in mind that homes are selling at a rapid pace in 2022, which keeps real estate appraisers busy.
You can speak with an experienced home lender that can give a specific duration and how they’ll walk you through the process.
What factors impact the final appraised value?
A real estate appraiser looks at various factors to determine a property’s fair market value. This informs your lender as to whether they give you the amount the seller is asking for.
Our experienced team groups these home appraisal factors into 3 major categories.
When completing an appraisal, the real estate professional examines the property’s exterior. They look at the home’s size, condition, construction materials, location, and more to calculate it’s value.
Any real estate appraiser examines the interior of a home so you do not move into a compromised property.
They consider the number of bedrooms and bathrooms, square footage, the appliances, and the overall layout. Any major renovations or noteworthy updates also impact the final appraisal.
Utilizing the home’s property information, they will price it according to similar houses. This process is called “real estate comps” and is another method of evaluating how much your dream home is worth.
The appraiser looks at recent sales prices of similar properties based on their external and internal factors. Then, they can make an accurate estate on your home’s value.
Home Appraisal Process Breakdown
When working with any home appraiser, they conduct an inspection under 4 simple steps that ends with your home’s accurate market price.
Then, the experienced lender assesses their report and helps you continue down the exciting home buying adventure. Our team is always available to answer any questions you have about this process breakdown.
- Schedule an Appraisal
Under normal circumstances, this should take 48 hours.
The actual walkthrough could take as little as half an hour or as long as 3 hours. For example, you will wait longer if your dream home is a large property.
- Reviewing Comps
Once the appraiser gathers all relevant data about the property, they begin examining comparable sales.
- Receiving the Report
They send you the completed home appraisal within 2-10 days of the walkthrough, depending on their workload.
When is an appraisal ordered in the loan process?
In most cases, lenders order the appraisal soon after the real estate professional has done the home inspection. The actual appraisal process can take as long as a week as explained above.
Your experienced mortgage partner will make a decision on funding your dream home based on how the appraised value compares with the contracted selling price.
The Appaised Value is Equal or More to the Purchase Price
If the final appraisal equals or exceeds the selling price, the seller cannot negotiate the price by law.
The appraisal may show the home is worth $10,000 more than the purchase offer in some cases. That means you as the buyer must get $10,000 of equity built-in to continue the sale.
The Appraised Value is Less Than the Purchase Price
Sometimes the appraisal report includes a value less than the agreed-upon purchase price. At this point, there are a few different options.
You could work with your real estate agent to initiate negotiations with the seller to bring the price down. The other possibility is paying the new purchase price despite the appraisal.
In a seller’s market when demand outweighs supply, this may be your only option if you want the house. We always tell our clients as experienced home lenders that walking away may be their best decision in the end.
How to navigate the appraisal process?
Whether you’ve been researching the home buying process for months or are just jumping in, we believe this information will help you have a successful home appraisal.
Saving enough money for a down payment and closing costs will not be enough if you don’t have an experienced lender to guide you through the home buying journey.
Jimmy Vercellino and our Highly-Motivated Vercelllino Team believe you have an exciting journey awaiting you. We take you through every step all the way to closing on your family’s dream home.
Call us today at (480)-800-8387 so our team can answer your questions about the home appraisal process and mortgage lending for buyers and sellers.