Arizona Mortgage Appraisal Process, Cost and Timeline

What is a home appraisal?

A home appraisal is a process through which a real estate appraiser determines the fair market value of a home. 

Arizona Appraisal Cost:

The cost of an appraisal can vary depending on the complexity of the property being appraised and the location of the property.

• Single-family home is around $350-$800.
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• Commercial and industrial properties tend to be more expensive to appraise, with prices ranging from $2,000 to $10,000 or more depending on the size and complexity of the property. 
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The price for an appraisal may fluctuate depending on market conditions.  Please consult with a lender to determine cost for a specific property.

It's important to note that the cost of the appraisal is typically paid by the borrower as part of the closing costs when obtaining a mortgage loan. The lender will require an appraisal to determine the value of the property and ensure that the loan amount does not exceed the property's value. In some cases, the lender may require additional appraisals or inspections, which can increase the overall cost of the loan.

Lender Appraisal Process:

In Arizona, a lender may request an appraisal of a property by contacting an Appraisal Management Company (AMC). An AMC is a third-party company that contracts with lenders to manage the appraisal process, including scheduling appraisals, selecting appraisers, and reviewing appraisal reports.

To request an appraisal through an AMC, the lender typically follows these steps:

1. Contact the AMC and provide information about the property, including the address, type of property (e.g., single-family home, commercial building), and the purpose of the appraisal (e.g., mortgage loan, refinance).
   
2. The AMC will review the request and determine which appraiser is best suited to complete the appraisal based on their experience and qualifications.
   
3. The AMC will provide the listing agent’s contact information to schedule the appraisal with the selected appraiser.  It will also provide them with any necessary information or documentation about the property.
   
4. The appraiser will visit the property, complete the appraisal report, and submit it to the AMC for review.
   
5. The AMC will review the appraisal report and verify that it meets the lender's requirements and industry standards.
   
6. If the appraisal report is accepted, the AMC will forward it to the lender, and the loan process can continue. If the appraisal report is not accepted, the AMC may request that the appraiser make changes or provide additional information.
   

Appraisal Timeframe:

The timeline for completing an appraisal request can vary depending on the availability of the appraiser and the complexity of the property. In general, it can take a few weeks from the time the request is made until the appraisal report is completed and accepted by the AMC.  Because of this it is important to request the appraisal once the contract is accepted in order to meet the timeline for close of escrow.

Considerations:

If the appraisal comes in lower than the purchase price of the property, the borrower may need to negotiate with the seller to lower the price or come up with additional funds to make up the difference.

If the appraisal meets the lender's requirements, the loan process can continue, and the lender will work with the borrower to finalize the loan terms and complete the closing process.

Are you looking to buy or sell a property in Arizona? I can help you understand the importance of appraisals and how they can impact your real estate transaction. Contact me for more information and to schedule a consultation.