Navigating the Appraisal

So, if you’ve made it this far you’re likely past your home inspection and investigation period and are ready to move forward! 

The appraisal is ordered by your lender, but you are responsible for the fee. Typical costs of an appraisal are $300+ and you are expected to pay this upfront. 

Appraisal Information:

• Neither you nor I will attend the appraisal. 

• Once the appraiser has completed their report, it is given to the lender. The lender will forward it to you and let you know what the property appraised for. 

• If the property appraisers at purchase price, there is nothing further you need to do and we can move forward with the purchase.

• IF the property appraises for MORE than the purchase price, that is GREAT news! It means you will already have equity in the home at closing. 

• If the property appraises for less than the purchase price, we have some work to do. The bank will only give you a loan based on the appraised value. We will need to go back to the sellers and renegotiate the purchase price down to the appraised value. If the sellers refuse, you’ll have a decision to make. If you have the extra money, you can pay the difference between the purchase price and appraised value. If you don’t, you can walk away and recover your EMD. 

Ready to connect? Reach out! I look forward to helping you on this journey!

► Go to Step 19

Monique Hanson is a REALTOR® serving the greater West Michigan area. Monique helps people buy and sell homes in Kent, Muskegon, and Ottawa Counties. You can contact Monique by calling or texting 616-805-9177 or emailing hello@moniquehanson.com.