What is checked during a refinance appraisal? (2024)

What is checked during a refinance appraisal?

The appraiser will thoroughly examine the home's exterior and interior to judge the property's condition and make note of its size and features. Next, they run an analysis that determines the current fair market value of the home by comparing it to similar, recently sold homes in the area.

How clean does my house need to be for a refinance appraisal?

Here are a few steps you can take to prepare for your refinance appraisal: Clean up. Your appraiser will likely want to view your home's interior and exterior, so make sure to clean up both the yard and the inside. Even something as simple as dusting and cleaning up clutter can make your home look more appealing.

What do VA appraisers look for when refinancing?

The first purpose of the VA appraisal is to establish a “fair market value” for the property. A lender is going to finance whichever is less between the appraised value and the purchase price of the home. Appraisers will look at recent comparable home sales, or “comps,” to help determine the property's value.

What do appraisers look at the most?

What negatively affects home appraisal?

Having outdated appliances, plumbing, electrical, and HVAC systems could decrease the value of your property. Dated features in your home's interior could imply that the property has not been well-maintained, which could raise concerns about any underlying issues.

Do refi appraisals come in low?

How often do home appraisals come in low? If the appraisal comes in low and the seller doesn't budge on the sales price, you might not qualify for the refinance. But this doesn't happen often. According to data from Fannie Mae, home appraisals come in below the asking price only about 8% of the time.

Do appraisers look in showers?

Bathrooms

Similar to kitchens, bathrooms are inspected for quality, condition and materials. An appraiser looks at whether it's a full or half bath, whether it has a decent shower, updated lighting, quality counters and looks for signs of mold.

Does a messy house affect refinance appraisal?

A messy house shouldn't impact your appraisal. Here's why: the appraiser is there to evaluate your home, not your stuff. Appraisers are, in fact, trained to ignore messes. However, it's worth keeping in mind three things.

Do appraisers care about cleanliness?

No. Appraisers are not influenced by the cleanliness of the home they are appraising. Only the material elements of the home and property are appraised, not its cleanliness or attractiveness. Material elements include the home's location, lot size, interior square footage, number of bedrooms, bathrooms, etc.

What are the red flags for VA appraisal?

Red flags include the presence of radon gas, asbestos or lead-based paint within the home, or properties located in a flood zone, near a sinkhole, or proximity to any type of environmental contamination.

Do appraisers look under sinks?

Yes, the appraiser will look under your sinks to ensure there isn't any water damage or problems hiding. No need to clear out any under-sink storage but do make sure it is clean and accessible. If there is no damage, this won't harm your home appraisal.

What will cause a house to fail VA inspection?

Pest Inspection, Dry Rot And Other Signs Of Deterioration

Appraisers must note any damage caused by termites, wood-destroying insects, pest infestation, dry rot or any other defects that cause structural issues with the home.

What not to say to an appraiser?

Do appraisals usually match asking price?

sales price: Do they match? Home sellers usually want the appraisal value to match their asking price for a smooth real estate transaction. However, the value of a house determined by an appraisal might not be the same as what sellers are asking for.

Do appraisers look in the attic?

Appraisers will also take a look at the attic and the basem*nt. These spaces can boost appraisal value if they are finished or add more livable square footage to the home.

Do appraisers look in refrigerators?

Appliances. An appraiser will take note of present appliances, which may include: refrigerator, stove, oven, dishwasher, washer and dryer, and others. Features and amenities.

Do appraisers turn on faucets?

Water pressure must be adequate for the house. Appraisers flush toilets, turn on all faucets and ensure that both hot and cold water are working.

What makes a home appraisal lower?

Your real estate agent will take the lead in pushing back on a low appraisal. If they find a discrepancy in the report, they can ask for a correction/revision. Some common problems that can lower an appraised value include miscalculation of square footage or failure to include garages/sheds or recent renovations.

How long does refinance appraisal take?

In cases where you do need an appraisal, refinance lenders will typically order one after they've reviewed all your application paperwork, as part of the closing process. The results are required to be in no later than three days before your closing date.

Do sellers usually lower price after appraisal?

If an appraisal comes back low, a buyer can go back to the seller and negotiate a lower sale price or walk away from the sale entirely. For the buyer and seller to both get what they want – a home that sells – the seller may seriously consider lowering the price.

How long to close on refinance after appraisal?

How Long Does A Refinance Take After An Appraisal? A refinance typically takes 30 – 45 days to complete from start to finish, but how long does a refinance take after appraisal? When the appraisal comes in, it shouldn't take longer than 2 weeks to close on your mortgage.

Do appraisers look at windows?

A dated look can negatively impact a home's value, so appraisers will note amenities such as light fixtures, appliances, and faucets to see if they are up to specification. Additionally, doors, windows, and flooring are checked for their condition and the materials used.

Does yard affect appraisal?

The million dollar question is: does landscaping add value to appraisal? The answer is YES. According to the American Society of Landscape Architects, the experts recommend to invest about 8-10 percent of your home's value in landscaping, which includes soft and hardscaping.

Are pictures taken during an appraisal?

Appraisers take pictures of the various rooms in a house as a way to describe the property being appraised. Pictures can give the readers of the appraisal report, such as loan underwriters, a better understanding of what the various rooms in the house look like including their condition.

Do appraisers always go inside the house?

Usually yes. The few times that they do not, you often don't know until the appraisal is complete without the appraiser having come inside.