Residential Appraisal Process - FAQs for Agents
Will the homebuyer receive a copy of the appraisal?
Yes. The Equal Credit Opportunity Act (ECOA) requires lenders to automatically send a copy of home appraisals after they are completed to the Buyer, regardless of whether the Buyer goes through with the purchase.
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What kind of information should I provide to the appraiser?
If you are a Sellers Agent and are worried the home may not appraise its best to Prepare an “Appraiser’s Package” in advance and have it available for the appraiser at the property. The package could include the survey to the property, neighborhood details, detailed list and dates of upgrades, remodels and costs, and most importantly recent similar-quality comparable Sales (See more below). It is highly recommended to leave the appraisal package on the Kitchen counter and do not physically meet with the appraiser.
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A Buyers agent may also do this is the Sellers agent is unwilling too, however this is not common unless the Buyers agent is worried the home will not appraise.
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When performing an Appraisers Package it is simple as running a CMA that is favorable to hitting the value of the home. Do not use any sales past 90 days old. The most important aspect of this is finding homes that have similar square footage and price per sq ft. Contact your Broker if you need help running comps.
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Yes. Regulations allow real estate agents, or other persons with an interest in the real estate transaction, to communicate with the appraiser. YOU MAY NOT TRY TO BRIBE AN APPRAISER.
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Who do I talk to if I feel the appraisal value is inaccurate in any way?
Once an appraisal assignment is completed and sent to the buyer and found to not hit value, you may submit an appraisal package or any information to justify a higher value directly to the lender and they will then forward it along.
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Does a buyer’s choice of financing impact the appraisal process?
Yes. The appraiser must comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and appraisal regulations for each loan type. VA and FHA loans have stricter appraisal regulations than a typical Conventional loan.
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How long does the appraisal take?
On average the appraisal is performed 7-10 days after the appraisal is ordered (usually ordered once the option period ends). After the appraiser inspects the property you can expect to have a copy of it 2-3 days after that.
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The mortgage lender orders the appraisal directly through an appraisal management company (AMC) which manages the appraisal process. Most lenders require the Buyer to purchase the appraisal upfront before it is ordered from the AMC.
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