You don’t have to worry and stress over having an appraisal done on the house you want to buy. Fortunately, there are ways in which you can make the entire process easier. Having a stress-free house appraisal can really make a difference, so you can get past that part of the transaction and move toward the closing table. It’s a great feeling to have that appraisal come back at or above the purchase price, but a lot of buyers worry that it won’t. That’s where quite a bit of the stress comes from, and it’s also one of the areas that’s hardest to control. Instead of letting yourself get worked up about it, focus on the areas where you do have control, to keep your stress levels down.
1). Are you prepared?
Being prepared for the appraisal can really help you reduce your stress. You won’t actually have a role in the appraisal process, but that doesn’t mean you don’t want to know what’s taking place. The more you know and understand about appraisals, the more comfortable you’ll feel with the one that you’re about to have on the house you love. Then you can have confidence in the process, which will let you feel calmer and more in control as you work your way toward closing.
2). Do you have other options?
If the appraisal doesn’t go your way, and the house doesn’t appraise for what you need it to be you’ll probably end up having to find another house. Some buyers who have extra cash available will put more down on the house to offset the lower loan amount, or the seller will reduce the selling price down to the appraised amount. That doesn’t always happen, though, and you’ll need to be ready in case those aren’t options for you. That doesn’t mean you should be putting in offers on other houses, but it’s a good idea to keep your eye on real estate listings in your area so you know your next move if it becomes necessary.
3). Have you been working with your agent and lender?
When purchasing your new home, you’ll need to work closely with your lender and your agent. That way you can be confident about where you are in the home buying process, and you’ll know right away if there are issues you need to address. Your agent and your lender are also both great sources of information if you have questions. Most agents are familiar with the lenders in the area, so they have some communication with them that you may not generally have. That can help keep you advised of anything that’s going on with your loan, including the appraisal.
4). Do you know when the appraisal will be done?
You can’t go to the appraisal, but you may want to know when it’s taking place. That can help you be more aware of the process. Some buyers don’t want to know exactly when the appraisal will be, because they feel like that raises their stress levels. In other words, if they don’t know when it’s going to be, they won’t sit around worrying about it while it’s taking place. However, that does lead buyers to wonder if the appraisal has been done yet, which can be just as stressful.
5). When will you have the results?
There’s a distinct process to follow when you buy a home, and part of that is the timing of the information you receive. Generally, you’ll know the results of the appraisal soon after it has been completed. The appraiser doesn’t just get back to the office, assign a value to your home, and go on to the next one. They have a fairly large, detailed report they have to provide to the lender. This shows the value, but it also shows the justification for it. It can take some time to create that, but you should have the results within a few days.
6). Are homes in the area selling well?
You can feel more confident and less stressed about your appraisal if you know what the other homes in the area are doing. Homes that are selling well can mean a stronger local real estate market, which can mean that values are higher. Sometimes homes sell fast because they’re inexpensive, though, so it’s important to understand exactly what is taking place when it comes to both home sales and home prices in the area where you want to buy.
7). How popular is the location?
If you know what to expect when the appraisal is coming up, you’ll feel less concerned about what that appraisal might mean for your loan. That can mean having a better understanding of the location of the house. Some areas are simply much more popular than others, and if you’re buying a house in an area where a lot of people want to live you may see that the prices of homes and their appraised values are higher than the surrounding communities.
2 Point Highlight
You don’t have to worry and stress over having an appraisal done on the house you want to buy.
If you know what to expect when the appraisal is coming up, you’ll feel less concerned about what that appraisal might mean for your loan.
