Appraisal

The purpose of the appraisal is to inform the buyer’s lender about the condition and value of the property. The appraiser is also required to notify the buyer’s lender if there are significant defects or safety hazards.

• The bank appraisal typically takes place within two weeks of the signed Purchase and Sale Agreement

• The appraiser works your REALTOR® to schedule interior access

• Sellers are typically not present for the appraisal

• The appraisal typically lasts 20 - 40 minutes

• The appraiser is required to take pictures for the report. The home should be in “showing condition” so that the appraiser fully appreciates its appeal.

• Depending on financing type, the appraiser may be required to access the attic, flush toilets and run all taps

AFTER THE APPRAISAL—WHAT TO EXPECT

The appraisal report is submitted to the buyer’s lender for underwriting review. If there are any issues with value or condition, you will be notified. The buyer pays for and owns the appraisal report. Sellers should not expect to receive a copy of the report except in the event of a dispute over value.

What happens if the appraised value is lower than the contract price?

If the appraised value comes in lower than the contract price, the buyer may seek to challenge the appraisal or renegotiate the price. Sellers are not obliged to renegotiate. Ultimately, an under-value appraisal could mean that the buyer is unable to obtain a mortgage or complete the purchase.

What happens if the appraiser identifies defects or safety hazards?

The buyer’s lender may require that defects or safety hazards noted in the appraisal be addressed prior to issuing a mortgage. There are different ways to address required repairs and your REALTOR® will advise you on the best strategy in the event that problems arise.