It is important that when you buy a home, you are prepared with the figures the home appraiser will give you. So before you jump in, make sure that you know the ins and outs of the appraisal process which we will share to you in this post given by Trulia.
First, you have to understand what you cannot do. Buyers cannot do anything with the appraisal process because it is a total hands off for buyers. This happens because appraisers follow strict guidelines and there is a certain database that the secondary market goes into. It is even referred by Brian Koss, executive vice president of Mortgage Network as “a very regimented process.” But this process also benefits buyers since it will help them prevent appraisal fraud.
Second, make sure that you know the neighborhood comps. Check into similar homes in the area that was recently sold and look into its price. You can also ask your broker on how they came up with a certain value to see to it that it could justify your price offer. You may also request for an "experienced" appraiser in the area who will most likely know the value of the home that you want to buy.
Third, ask your agent to speak with the appraiser before the final report is made. Let your agent provide some printouts of recent sales to justify the price of the property. You can also let the agent provide some information to the appraiser about the property which could have a great impact to the report.
Fourth, you have to recognize what low appraisals mean. You can use your knowledge about the area where the property is located and inform the appraiser about it. Reasons may include: home prices are rapidly increasing that the improvements six months ago aren't reflected yet, there are no enough comps in the area, the house has a better view, it has a finished basement with a bedroom and bathroom and it has a pool or a high-end landscaping.
Lastly, take a look at the appraisal report. If you see that there were errors and omissions, ask about a revaluation so that it can be corrected which could give your home a higher value. It is very important that you and the realtor will review the appraisal report, Realtor.com suggested.
