What is an appraisal?
Written by Graham Team · Graham Team Real Estate Advisors — Henderson & Las Vegas, NV · Contact
Learn how the Las Vegas home appraisal process works. Understand appraiser visits, market value checks, and what happens if an appraisal comes in low.
Dated: July 27 2021
What happens during the appraisal process
A home appraisal is an unbiased estimate of the fair market value of a homes worth. The vast majority of lenders order an appraisalso that there is an objective way to assess the home’s market value and ensure that the amount of money requested by the borrower is appropriate. We typically allow 20 to 25 days for the appraisal to be completed and to receive the appraisal report back. The lender will have a list of approved appraisers that they will use to complete the appraisal. When the lender is getting ready to order the appraisal, they will typically send you a link to pay for the appraisal. Once completed, the appraisal will be scheduled. The appraiser will then go out to the property, assess pertinent information about the home such as age, square footage, and amenities such as granite counter tops, pools and lots of other factors about the home. They will also take pictures to be included in the appraisal report. The appraiser will also take into consideration current market conditions. Once the appraisal is completed, a report will be sent to the lender for review. If the appraisal of the property is at the agreed upon sales price or higher, than the buying process will continue. If the appraisal comes back at a lower price than the agreed upon sales price, you then have some options to consider as far as renegotiating the sales price, purchasing the property at the previously agreed upon sales price or backing out of the home purchase altogether.
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Frequently asked questions
What is an appraisal and why is it necessary?▾
What is an appraisal? A home appraisal is an unbiased, professional estimate of a property's fair market value. Lenders require a home appraisal before approving a mortgage to ensure the property's worth matches the loan amount, protecting both the lender and the buyer from overpaying.
How long does the home appraisal process take?▾
The entire home appraisal process typically takes 20 to 25 days to complete and receive the final report. While the appraiser's physical property visit only takes about an hour, researching local market conditions, finding comparable sales, and drafting the detailed report requires additional time.
Who pays for the home appraisal and when is it due?▾
The buyer is responsible for paying the home appraisal fee. Even though the lender selects and orders the appraisal, they will typically send the buyer a secure link to pay for the service upfront before the appraiser schedules their visit to the property.
What does an appraiser look at during a home appraisal?▾
During a home appraisal, the appraiser evaluates the property's overall condition, age, square footage, layout, and exterior. They also note specific upgrades, such as new countertops or pools, take photographs, and analyze recent sales of similar homes in the immediate neighborhood.
What options do I have if the home appraisal comes in low?▾
If the home appraisal comes in below the agreed-upon sales price, buyers have several options. You can renegotiate the price with the seller, pay the difference in cash to cover the loan gap, or use your contract's appraisal contingency to back out of the purchase entirely.
Can a buyer dispute a low home appraisal?▾
Yes, you can dispute a low home appraisal. Your real estate agent can help you submit a Reconsideration of Value (ROV) to the lender. This process involves presenting new data, such as missed comparable home sales or unnoted property upgrades, to justify a higher valuation.