Quick answer: A home appraisal is an independent opinion of value that your lender orders to make sure the home is worth what you're paying. In Spokane, the appraiser compares your home to recent nearby sales. If it comes in low, you can renegotiate, cover the gap, challenge the appraisal, or, depending on your contract, walk away.
After your offer is accepted, your lender orders the appraisal through a licensed appraiser. The appraiser visits the home, measures it, notes its condition and features, and compares it to similar homes that recently sold nearby. The final report gives a market value the lender uses to decide how much it will lend.
The buyer usually pays for the appraisal as part of their loan costs.
| Appraisal | Inspection | |
|---|---|---|
| Who it's for | The lender | You, the buyer |
| What it answers | Is the home worth the price? | What condition is the home in? |
| Required? | By most lenders | Optional, but strongly recommended |
| Depth | A walk-through and comparison to sales | A detailed look at systems and structure |
An appraisal is not a substitute for an inspection. Appraisers aren't looking behind the furnace or up on the roof.
A low appraisal doesn't have to end the deal. Your options usually include:
Low appraisals aren't common in today's Spokane market, but it's always smart to be prepared. They usually happen when multiple offers push the price above where the market currently sits.
I've seen it go both ways. In one multiple-offer situation, the buyer really wanted the home and chose to bring extra cash to closing. In another, the seller agreed to lower the price to the appraised value. We sent the listing agent a notice of low appraisal, and both sides signed an agreement to adjust the price.
The buyer usually pays as part of their loan costs.
Yes. Cash buyers can choose whether to get one, though it can still be a helpful check on value.
The visit itself usually takes an hour or two. The report typically follows within several days to a couple of weeks, depending on how busy appraisers are.
Yes. You can ask your lender for a reconsideration of value with better comparable sales or corrections.
If you're thinking about buying or selling in Spokane, I'm happy to walk you through how appraisals work and how to plan for one before you start.
Call or text Chelsea: 509.565.1581
Email: chelsea@mcfarlandprey.com
Office: 1402 S Grand Blvd, Suite 201, Spokane, WA 99203
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