Appraisal FAQ's
Posted by Paul Caparas on Friday, November 20th, 2009 at 3:17am.Here is a quick blog on Frequently Asked Questions on Appraisals.
Who pays for the Appraisal?
The buyer. Every now and then I would have a buyer saying his/her Lender will pay for it but most of the time it's the buyer cost.
Who orders the Appraisal?
The buyers lender.
How long do they usually take to get complete?
It depends. I have seen them done anywhere from 3 days to 20 days.
What happens if the home appraises Lower than the purchase price?
We go back to the negotiating table with the Seller. Basically the seller has to agree to lower the purchase price to close the deal because the buyer can't even get the loan if they don't. And if the Seller doesn't want to reduce the price, the buyer may cancel and get their deposit back (if the Loan Contingency hasn't been moved).
What happens if the home appraises HIGHER than the purchase price?
That is good news for the buyer. The buyer still gets to buy the home at the purchase price.
I maybe forgetting some other questions so if you have some, please let me know.
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