“Deferred maintenance can decrease the value of a home,” Shockley states. “Buyers look at the total outflow of cash, including purchase price and repairs.” Big-ticket items like foundation issues, a leaky roof, and old windows can add tens of thousands of dollars to their outlay of cash. They can also raise concerns that other ordinary maintenance hasn’t been done.
Other items that may drag down the appraised value in Indiana are small lots and poor curb appeal.
What will a home appraiser in Indiana ask of me?
When preparing for an appraisal, be flexible with the schedule and make sure the appraiser has access to all parts of the house. Provide a list of recent improvements and upgrades you’ve done to the house.
If you have pets, be sure they’re secured. Ensure a smooth appraisal process by going over this home appraisal checklist.
Can I get a free home appraisal?
HomeLight is one of several online real estate companies providing a free home appraisal through an online value estimate tool (known as AVMs or automated valuation models). After receiving details about your property, our Home Value Estimator analyzes millions of real estate transactions to provide a preliminary or ballpark estimate of value in less than two minutes.
Homeowners can also request a comparative market analysis (CMA) from a local real estate agent. A CMA is a tool agents use to calculate the value of a home by evaluating its features, size, location, age, and other details in relation to similar nearby properties that have recently sold. A CMA is primarily used to help set a listing price.
Keep in mind that while an AVM or CMA can provide you with a home value estimate, they aren’t the same thing as a home appraisal performed by a professional appraiser.
Who pays for a home appraisal?
Who pays for a home appraisal depends on its purpose. When purchasing a home, the buyer typically pays for the appraisal. The fee may be included in the closing costs, or the buyer may have to pay for it directly or through their lender.
Homeowners might pay for an appraisal if they are refinancing, and some sellers will pay for what’s known as a pre-listing appraisal.
Here’s how payment generally works:
| Purpose of the appraisal | Who generally pays for the appraisal |
| Pre-listing determination of value | Homeowner who is considering selling |
| Home purchase | Buyer or borrower |
| Refinance | Homeowner or borrower |
| Settling an estate | Family or estate assets |
Is a seller pre-listing appraisal worth it in Indiana?
A pre-listing appraisal can be especially helpful if sellers have unique or rural properties that have few comps. For the average home with plenty of comps, it may be wiser not to spend the money on an appraisal when a CMA can provide much of the same information.
In fact, Shockley considers — in most cases — paying for an appraisal on the home you’re selling a waste of time and money. According to federal banking regulations, he says, appraisals are only valued when related to a financial transaction. When it comes to a seller getting a pre-listing appraisal, he says, “A bank can’t use it due to perceived bias. If [an appraiser] wasn’t hired by the bank, it’s not […] helpful.”
Conversely, Williams says the opinion of a third party can be beneficial when setting the price of a unique property with no comps. He once had a seller whose home had no comps within a half-mile radius, so he hired an appraiser.
“The appraiser came in $50,000 higher than we were going to list [the home] at,” he recalls. The home was appraised at $450,000. He listed it at $420,000, showing all potential buyers the appraisal so they could see that if they bought the home, they’d have immediate equity.
“By seeing the appraisal [in comparison with the asking price], they felt like they were getting a deal,” he says. Considering that during the pandemic and housing shortage, many buyers were overpaying for homes, [and] seeing that they could have equity upon purchasing this home was a strategic reassurance that encouraged bids.
This tactic resulted in multiple offers that came close to the appraisal. The home sold quickly.
How long does a home appraisal take?
Appraisals can take a few days or a few weeks to complete. It depends in part on the size and uniqueness of the home and the current housing market.
When mortgage rates drop, as they did in 2021, appraisers may have a backlog of customers wanting appraisals, which results in a busy market that can slow the timeline. A shortage of qualified appraisers can also impact the timeline.
How do you find an appraiser in Indiana?
In most cases, the lender is the party requiring an appraisal and will hire an appraiser through an AMC. AMCs provide third-party, professional appraisal contractors who are not affiliated with the lender or borrower.
If you are hiring an appraiser directly, you can find one through the Appraisal Institute, a global organization for home appraisers. Its Find an Appraiser tool lets you search for an appraiser by ZIP code.
Williams also suggests a Google search. You can also ask friends, colleagues, your lender, or a local real estate agent for a referral.
Conclusion: Ask your Indiana agent about appraisals
An appraisal essentially evaluates a home in comparison with similar homes nearby. Lenders and homeowners use appraisal results to establish the value of a property.
If you’re a buyer, you’ll likely pay for an appraisal if you’re financing the purchase of a home. If you’re a seller, talk with your real estate agent about whether or not a pre-listing appraisal will benefit your sale. An experienced agent can also advise you on how to put your home in the best light.
If you don’t have an agent, HomeLight can connect you to the top-performing agents in your neighborhood through our Agent Match platform. In less than two minutes, this free tool will analyze more than 27 million transactions and reviews to find the best agent to meet your needs.
Writer Amna Shamim contributed to this story.
Header Image Source: (njproductions / Depositphotos)
