After reaching agreement on the inspection findings, the lender will order the appraisal. Once ordered, we wait for the appraisal to be turned in which generally takes 2-4 weeks from ordering. Closing, if delayed, is almost always by a late appraisal submission. To avoid that, it is possible for you to give lender the OK to order appraisal immediately upon your accepted offer.
The lender will tell us when the appraisal is received. The majority come in “at value” with no work conditions. If there are any conditions, like replacing a piece of rotten wood, touching up peeling paint, etc., we work with the seller(s) to have them addressed before closing. If the appraisal comes in below value (aka below agreed-upon purchase price), there are a few options:
- The seller comes down to appraised value
- The buyer bridges the gap with cash down
- The seller and buyer meet somewhere in the middle
We will cross this bridge in more detail if it occurs. Low appraisals seem to happen approx. 5% of the time.0