At some point in the process, your lender will schedule an appraisal of your property to ensure the property value meets the lender’s specific criteria. It is important you understand that, typically, the lender wants to make certain the property is worth the amount of money they are loaning to you, not the sale price
(NOTE: your REALTOR should have already protected you in this respect when writing your offer… if they failed to do so, you have the wrong REALTOR. What does this mean? Call me).
The lender will ask you to pay for the appraisal in advance. (NOTE: the cost of the appraisal, home and septic inspections, water tests, radon air testing, etc, are paid directly by the Buyer as the process unfolds… these costs will be credited toward your closing costs as a “pre-paid” item when the settlement statement is prepared).
It is not necessary for you to attend the appraisal.
Who will appraise the property? The truth is, we don’t know. After the real estate crisis several years ago, the government determined that appraisers should be more insulated and independent than they had been previously – so appraisers are now contracted through a third party.
A request will be submitted to the third party by the lender, and any of the certified appraisers who are approved by the clearinghouse may accept the “order”. They will schedule an inspection of the property, which is always attended by at least one of the REALTORS who are involved with the transaction. The appraiser will then submit an appraisal report to the lender, through the third party.