Rock Home Appraisal
... All the Facts You Need to Know.
When you apply for a home loan, most Little Rock mortgage companies
will require a Little Rock home appraisal. They just want to make sure
the value of the home will be enough to repay the loan if you default.
A residential real estate
appraisal is used as a tool to help establish the fair market value of
An appraisal is not the same
as a comparative market analysis(CMA). A
CMA would be used by a Little Rock Realtor to help a home seller
determine a fair selling price for their house in the current market.
Unlike a CMA, a Little Rock home appraisal would be much more detailed
- and is the only type of property valuation report a bank will accept.
Facts About Real Estate Appraisers and Appraisals
estate appraisers in Arkansas are licensed after completing a required
number of hours of course work, an internship with an experienced
appraiser, and successfully passing the licensing exam. This process
takes about 2 years.
Your mortgage lender may use
an appraiser on staff or contract with an
independent Little Rock home appraisal specialist. If you are allowed
to pick the appraiser, make sure it's someone familiar to the mortgage
company, or the results may be subject to a review.
Above all, the appraiser
should be a neutral third party with no
connection, financial or otherwise, to anyone involved in the
property is the name given to the property being
You will probably pay for your
Little Rock home appraisal when you apply for your home loan.
Residential property is
normally appraised one of two ways.
Comparison - The subject properties value will be
estimated by comparing it to similar properties that have recently sold
in the same area. The properties used for the comparison are known as comps.
The appraiser will have to
make paperwork adjustments to the comps so
their features are more in line with those of the subject property. The
resulting figure will be closer to what the comps would have
sold for with those some features.
- The cost approach would normally be used for new
homes where the costs to build are well known. The appraiser estimates
the replacement cost if the structure were destroyed.
Things to Look for on a Little Rock Home Appraisal
- Details about the subject property along with
analysis of 3 comps.
- An evaluation of the current overall real
- Statements about things the appraiser thinks
could devalue the property.
- Notations about serious flaws like a cracked
- An estimate of the average sales time for the
- The type of area the house is in (development,
stand alone acreage, etc.)
What an Appraisal Should Not be used For.
residential home appraisal should never used as a home inspection
report. Even though appraisers make notes about obvious problems they
see, they're not home inspectors. Don't use an appraisal to decide the
condition of a house.
What does a Little Rock Home Appraisal Mean to You?
final mortgage loan commitment usually depends on a favorable
appraisal. The home lender wants to make sure they can recover their
money if you default on the home loan.
If the appraisal is lower than
the sales price, the loan could be declined.
Problems with the subject
property may have been noted by the appraiser
which could cause the lender to require extra documentation. An example
would be a mortgage company requiring a signed private road maintenance
agreement, verifying that maintenance costs are shared by everyone who
uses the road.
Your lender will go over the
appraisal carefully before deciding if the
subject property qualifies as security for your home loan.
Things You Can Do if Your Appraisal is Low.
first thing to do is stay calm and don't panic. The buyer and seller
both have some options that could still make the sale go through. Let's
look at the list.
buyer can make up the difference in cash. If an appraisal
is below the selling price, it doesn't mean the lender won't loan any
money. It just means they won't give you enough to meet the seller's
price. If you have enough cash to make up the difference - problem
seller can lower the price. If the house was priced a
little high, this is usually the best solution for everyone involved.
The seller can carry a second mortgage for the difference. The buyer
can make payments directly to the seller to make up the difference
between the selling price and loan amount.
Order a second appraisal. If you think mistakes were made on the first
appraisal, you can order a second one. The buyer or seller can pay for
the second appraisal.
5. Supply a
list of comparable sales that justify the agreed on sales price. Then
ask your lender for a review of the appraisal.
the transaction. If your purchase contract contains a
properly written loan contingency, you may be able to cancel the
contract. The seller would then be required to release your earnest
Just remember that most
problems are correctable. Try to stay calm and work through one issue
at a time.
Little Rock Homes Guide.
from Little Rock home appraisal to Home page.
from Little Rock home appraisal to Little Rock home loans.
Little Rock Real Estate.