Depending on the appraiser and the level of detail required for a multi-family property, an appraisal could take anywhere from a few days to a couple of weeks. The process involves physically examining the property’s conditions and comparison with similar multi-family properties in the neighborhood. Recent sales data and location are critical when writing the final appraisal report.
At Unique Properties Inc., we offer commercial, industrial, retail, land, medical, and multi-family investment properties through acquisitions and dispositions, landlord and tenant representation, in Denver, CO. Read on to find out how long a multi-family property appraisal takes.
What Is an Appraisal?
An appraisal is a detailed examination and analysis of the current market value of a property. In a purchase-and-sale transaction, an appraisal determines whether the contract price is pertinent, depending on a property’s features, condition, and location. The lender uses an appraisal in a refinance transaction to loan the borrower the amount a property is worth.
What You Should Know About Appraisals
An appraisal is a professional process of determining the market value of a property. The critical takeaways in property appraisals include:
The Process and Cost of an Appraisal
The lender initiates the appraisal process to determine the amount of loan to give out.
The fee varies depending on the property’s size, location, details, and condition. A certified real estate appraiser with no direct or indirect interest in the transaction executes the property appraisal.
Determinants of the Appraisal Value
The current market trends and recent sales of similar properties influence the property’s appraisal value.
Other key factors include:
- The property’s amenities–number of bedrooms and bathrooms, floor design, and the square footage
- The interior and exterior conditions
Property Appraisal Report
A property appraisal report is an analysis and conclusions about the property’s value based on the appraiser’s interior and exterior observations.
The report includes:
- The location and comparable sales of the appraised property
- A sketch of the exterior of the property
- The square footage calculation formula
- Pictures of the property’s street, front, and back
- Front exterior photos of each comparable property used
- All other pertinent information determines the property’s fair market value
What Sellers Need to Know About Appraisals
Appraisals are a way to get a second opinion on the value of your property from a certified appraiser. The appraiser reviews your property’s condition and compares it to similar properties and recent market data.
The key things a seller should note include:
- Recent distress sales in your neighborhood can reduce your property appraisal value.
- You may convince the appraiser that your property’s value is higher. This only happens if your property’s value has been dragged down by the sale of nearby foreclosures and short sales.
At Unique Properties, Inc., we offer multi-family brokerage services in Denver, CO. We are your ideal partner in multi-family real estate investment.
How Long Does an Appraisal Take?
A detailed appraisal process takes seven days to several weeks. However, this period varies significantly depending on the appraiser’s workload and level of the appraisal. During the appraisal period, the appraiser looks at the property, researches, prepares the appraisal report, and delivers it.
The appraiser visits the property to inspect its interior and exterior, measure the square footage, and evaluate the property’s features and fixtures. The appraiser also includes a recent comparison of other similar multi-family properties sold in that location before writing a final appraisal report.
What Happens After the Appraisal?
After the appraisal, you receive a report copy to view the property’s details. You initiate the closing process if your offer matches the appraised value.
If your contract price is lower than the appraisal value, the buyer may be able to negotiate a lower sales price.
An appraisal contingency clause allows the buyer to cancel the purchase contract if both parties can’t strike a deal. The buyer’s initial deposit is refundable if it’s within the appraisal objection date.
If a lender is servicing you, mortgage underwriting comes after the appraisal. Depending on the information submitted, the underwriter reviews the entire loan file, assesses the loan-associated risk, and either approves or denies the loan.
Unique Properties, Inc., The Partner You Need With Multi-Family Properties
Are you looking for a company that specializes in multi-family properties? Unique Properties Inc. has facilitated numerous acquisitions and dispositions of multi-family properties over the past 40 years.
We know what it takes to buy or sell a property in Colorado.
Unique Properties, Inc.’s team of experts will work tirelessly to ensure that the process goes smoothly from start to finish
Contact our full-service commercial property specialists today.
Image Credit / Shutterstock / Mikibella