Knoxville is an incredible place to live. From the fantastic restaurants in the downtown area to the gorgeous streets of West Hills, Knoxville packs a lot of punch into its small, southern-belle exterior. While moving here is an exciting adventure, there are a few things you need to know when it comes to home appraisals in Knoxville.
Below is a guide for everything you should know about home appraisals in Knoxville.
If you’ve ever bought or sold a home, you’ve probably heard of appraisals. But what exactly is an appraisal, and what does it entail?
An appraisal is a professional opinion of the value of a home or piece of land based on comparable sales in the area. An appraiser has access to public records that include past sales and other data to determine value. If there are no comparable sales in the area, the appraiser may choose another appraisal method to determine the value of a home or parcel.
Although an appraisal protects the lender’s interests, the borrower is required to pay for it. The order for an appraisal can come from either party, however.
The appraisal process is different in each state, but licensed appraisers follow national standards. Appraisers study the features of the property and compare it with similar properties that have recently sold or are on the market.
Then they will take away or add features to the home for a final, appraised value. The appraiser then completes an appraisal report detailing sales prices, comparable sales, and other information about the property.
The lender will usually order the appraisal when the mortgage broker has received the agreement between buyer and seller. The mortgage broker then charges the cost of the appraisal report back to the buyer.
Appraisals can take anywhere from seven to 10 days to process. It depends on the appraiser’s workload and the amount of time it takes for the appraiser to complete the appraisal.
The cost of an appraisal varies depending on where you live and the size and condition of your home. Most appraisers in Knoxville charge between $370 – $470. Check here for some appraisers in Knoxville. I’ve seen appraisals cost upwards of $2000 depending on the size of the property being appraised and the work needed to complete the report. For a single family homes, they cost less.
When you’re buying a home and are in contract, you will likely have to have an appraisal. This process can go smoothly if the home appraises at or above the contract price, but it can delay or derail the transaction if it appraises for less than the agreed-upon purchase price.
A low appraisal means you may have to lower your asking price to get the house sold. Don’t gamble on a high sales price in a declining market. A low appraisal can make it challenging to sell your home. You may be better off accepting an offer from an all-cash buyer who doesn’t require an appraisal.
If you have a conventional mortgage and want to refinance, a low appraisal can prevent you from refinancing. However, if your existing mortgage is under the Federal Housing Administration, you can refinance without an appraisal through their streamline program.
After the home appraisal, a mortgage underwriter reviews the loan file for accuracy and completeness, assesses the risk of the loan, and either approves or denies the loan. Declinations are rare if you have a good mortgage broker handling your file.
A home’s location has a huge bearing on its value. The more desirable the location, the higher the value. Of course, you can’t change where your home is situated, but you can do certain things to make it appear more desirable. You can enhance your home’s curb appeal or add new features. That said, home improvements will only marginally change the value of a home in a less than desirable area.
Appraisals can be a little intimidating, and keeping these in mind can help ease the stress. In today’s market, low appraisals in Knoxville are rare but can happen.
If you’re looking to sell your Knoxville home, please call us. We’ll meet with you and give you a plan specifically designed for your home and needs. If you’re looking for your new home, we can help you find one. Please click here for our contact page, and we’ll reach out personally and promptly.
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