What to Know About the Appraisal Process When You Sell a Home in Houston

When most people want to sell a home in Houston, Texas, the first question they have is often “How much is it worth?” Answering this question is where the real estate appraisal process comes in. The appraisal value is the value placed on a home by the buyer’s lender. When a mortgage lender is underwriting a loan on your home that their client wants to buy, they hire an appraiser to value your home. 

The appraisal value that the bank’s appraiser ultimately places on your home may not match what you or your Realtor® believe is the home’s actual market value. An appraisal is essentially one person’s opinion, and more than one appraiser may have more than one value. Nevertheless, the lender will use this appraisal as a primary decision-making factor when they decide whether or not to finance a loan for the home buyer. 

Appraisal time can be a stressful time for home sellers in Houston! Fortunately, Houston real estate is always a seller’s market. Here are a few things to keep in mind about your property’s appraisal to help keep you focused on the big picture. 

1. The appraiser works for the mortgage lender.

The lender may order the appraisal either directly from an appraiser or through an appraisal management company that coordinates the process on behalf of the lender. As a seller, you aren’t responsible for hiring an appraiser, but you can’t fire one either.

2. You can talk to the appraiser.

Your Realtor® is allowed to communicate with the appraiser since you have an interest in the real estate transaction. You can also be at the property when the appraiser is there and answer any questions they might have. Even so, it’s important to give the appraiser space to do their job.

4. You may provide documents to the appraiser if requested.

Documents such as plats, surveys, deeds, covenants, neighborhood details, and comparable sales are all relevant items the appraiser may be able to use. If you have documents that may help clarify your home’s value, you can provide them to the appraiser through your Realtor®.

4. You can’t discuss the appraisal report with the appraiser.

Appraisers cannot discuss their reports with anyone but their client—the mortgage lender— or anyone that the lender designates to receive the information. You can contact the lender in writing if you think there are errors in the report or if you want the appraiser to consider additional information.

5. If you can have concerns about the appraiser, you can communicate them with the lender.

Like real estate agents, appraisers are required to be competent in the geographic area in which they work. If you think the appraiser of your home isn’t competent to appraise property in your area, have your Realtor® contact the appraiser’s client (the lender who ordered the appraisal) and share your concerns. You can also contact the Texas Appraiser Licensing and Certification Board, which enforces the rules and laws appraisers must follow.

Remember, the appraiser works for the lender—not the buyer, and not the seller. They are hired to be independent. If a mortgage lender is involved in your transaction, there WILL be an appraisal. It’s a bad idea to try and fight it unless something goes very wrong. The best advice for a home seller during the appraisal process is to stand by and be helpful if need be. It’s a routine part of selling a home in Houston! 

If you want to get the best price possible for your home, it’s best to work with an experienced Houston Realtor®. Contact us today at Angel Fultz Realty, and we can answer any question you may have about the process of selling your home, including the appraisal.