How To Select An Appraiser
If you are selling your home you may want to have it appraised
before you put it on the market. It is money well invested. I have
seen owners sell a home $20,000 to $30,000 under appraised value
because of an Agent's Market analysis. As the seller you will never
see the lender's required appraisal and if there is a major difference
between the value and the selling price you will only know if it
doesn't appraise high enough. Then of course you will have to lower
your price or find someone willing to purchase with enough cash
to make up the difference. (Fat chance) If it appraises a substantial
amount higher, you will never know.
If there is any possibility that your home could be financed by
a FHA loan then the appraiser you select should be FHA approved.
Order a conventional appraisal, it's less expensive. But, if your
buyer does get a FHA loan then your appraiser will be able to convert
it. If the appraiser is not FHA approved then you will have to purchase
a brand new appraisal. If your home does not qualify for FHA financing
then this is not an issue.
Use an appraiser that is familiar with your area. Ask him if he
Your appraisal is only usable by a lender for 6 months. Some appraisers
will update one they did for a small fee. If your appraisal IS usable
by the buyer's lender the appraiser will usually charge a small
fee to put it in the lenders name. Discuss these things with the
appraiser you choose.
If you are a buyer it is absolutely best to let your lender order
the appraisal. Some lenders have special requirements or a list
of approved appraisers. You must stay within their guidelines if
you want their loan. Sometimes if a seller already has an appraisal
it can be used but sometimes it can not. If the seller is financing
your purchase you may want to order your own appraisal. It just
depends on your relationship with the seller.
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