Worried an appraisal could make or break your deal in Macomb? You’re not alone. Whether you’re buying or selling, the appraisal sets the stage for financing and pricing. In this guide, you’ll learn who orders the appraisal, what appraisers evaluate, how results affect your loan, and simple ways to prepare your home in Macomb County. Let’s dive in.
Appraisal basics in Macomb
When you finance a purchase, the lender orders the appraisal to confirm the home’s market value. The buyer typically pays the fee as part of closing costs. Lenders rely on agency standards, such as the Fannie Mae appraisal requirements and Freddie Mac guidelines, to protect their collateral.
For cash deals, an appraisal is optional. You or the other party can order a private appraisal for peace of mind, or you might use a pricing opinion from your agent to guide negotiations.
Typical timeline in Macomb
- Order placed: After loan application and once property details are confirmed.
- Scheduling and inspection: Usually 3–10 business days, depending on appraiser availability and season.
- Report delivery: Commonly 3–7 business days after inspection. Unique homes or limited comparable sales can extend timing.
Common appraisal types
- Full residential appraisal with interior inspection (most purchase loans).
- Exterior-only or limited-scope products (some refinance scenarios).
- Desktop valuations or automated valuation models for select low-risk loans.
- Appraisal reviews or updates if a lender needs a second look.
What appraisers evaluate
Standards and licensing
Licensed appraisers must follow USPAP, the industry’s standards of practice. You can learn more about these standards from The Appraisal Foundation. In Michigan, appraisers are licensed and regulated by LARA.
Sales comparison approach
For most single-family homes, appraisers rely on recent comparable sales in the neighborhood. They select similar properties, then adjust for differences like size, condition, lot, garage, finished basement, and location influences. Agency guides, including the Fannie Mae Selling Guide, detail how comps and adjustments are documented and reconciled into an opinion of value.
On-site inspection
Appraisers assess both exterior and interior features. They verify room counts and square footage, note visible condition, and photograph the home and street scene. Expect attention to functional utility, visible mechanicals, and any signs of deferred maintenance or safety concerns.
Adjustments and market trends
Appraisers adjust values to account for differences and for market movement. In a changing market, they may apply time adjustments to older sales to reflect current conditions. The goal is a supported, unbiased opinion of market value on the date of inspection.
How results affect your loan and deal
If the value meets or exceeds price
When the appraisal supports the contract price, your loan typically proceeds through underwriting. Your lender will still verify credit, income, and assets before issuing a clear-to-close.
If the appraisal comes in low
A low appraisal means the lender will base the loan on the appraised value. Common options include:
- Bring additional cash to cover the shortfall.
- Renegotiate the price with the seller.
- Split the difference.
- Use your appraisal or financing contingency to cancel if allowed.
- Ask the lender for a review or reconsideration if factual errors or better comps exist.
Loan program differences
- Conventional loans: Follow standardized forms and rules guided by Fannie Mae and Freddie Mac. An appraisal is usually required for purchases.
- FHA loans: Appraisers also check Minimum Property Requirements. Repairs may be required before closing. See HUD’s Single Family Housing Policy Handbook 4000.1.
- VA loans: VA appraisals include Minimum Property Requirements and can trigger repairs as well. Review the VA Lenders Handbook for details on appraisals and MPRs at the VA handbook page.
- Cash deals: An appraisal is optional, but buyers and sellers often rely on market data and contract terms.
Appraisal vs. CMA
An appraisal is performed by a licensed appraiser who follows USPAP and lender rules. It supports lending decisions and is considered an unbiased professional opinion of value.
A Comparative Market Analysis (CMA) is prepared by a real estate agent. It uses local sales and expertise to recommend a pricing strategy for listing or making an offer. It is not a substitute for a lender-required appraisal. The Appraisal Institute and NAR’s consumer guidance both outline how each tool works and when to use them.
If you’re selling, it’s smart to start with a CMA and then decide if a pre-listing appraisal fits your situation. This can be useful for unique homes, waterfront lots, or when you want a defensible price in a volatile market.
Macomb-specific tips and prep checklist
Macomb County includes newer subdivisions, mid-century homes, and some waterfront and riverfront parcels. That mix makes local comps essential. Appraisers will focus on truly comparable sales in your neighborhood.
- Seasonal reality: In winter, clear driveways and walkways so the appraiser can safely access the home. If snow hides landscaping or patios, provide photos from warmer months.
- Waterfront or riverfront: Gather records about shoreline improvements, flood zone details, and any riparian rights. Water access and lot characteristics can drive significant adjustments.
- Older homes: Share permits and service records for major systems. Clear documentation can reduce uncertainty and limit adjustment penalties for deferred maintenance.
- County context: Appraisers may reference public data for lot size and legal descriptions. For county-level property information, you can explore the Macomb County Equalization resources at the county’s Equalization Department.
Simple checklist for appraisal day
Access and docs
- Ensure the appraiser can access all areas, including basement, garage, and mechanicals.
- Prepare a list of upgrades with dates, permits, warranties, and any recent comparable sales you believe are relevant.
Condition and safety
- Tackle quick fixes: leaky faucets, loose handrails, peeling paint, or broken fixtures.
- Clean and declutter main living areas to show functional utility.
- In winter, clear snow and ice from steps and walkways for safe access.
Accuracy and features
- Verify bedroom counts, finished square footage, and permitted additions.
- Provide documentation for recent roof, HVAC, windows, or energy-efficiency upgrades.
Next steps for buyers and sellers
Understanding how appraisals work helps you set the right strategy. If you’re buying, build in the right contingencies, and be ready with data if the value comes in low. If you’re selling, price with local comps in mind, prepare your home, and organize documentation so the appraiser sees the full picture.
If you want local, hands-on guidance for your Macomb purchase or sale, connect with Kevin Paton for a clear plan from pricing through closing.
FAQs
Who orders and pays for a home appraisal in Macomb?
- For financed purchases, the lender orders the appraisal and the buyer typically pays the fee as part of closing costs; for cash deals, either party can order a private appraisal.
How long does a Macomb appraisal take from start to finish?
- Scheduling often happens within 3–10 business days, and most reports are delivered 3–7 business days after inspection, depending on property complexity and season.
What are my options if the appraisal comes in low on a purchase?
- You can bring additional cash, renegotiate price, split the difference, cancel under contingency if allowed, or request a lender review if there are factual errors or better comps.
Can I be present during the appraiser’s inspection of my home?
- Yes, owners are commonly present for access and questions; just avoid pressuring the appraiser and instead provide a concise packet with upgrades, permits, and relevant comps.
Does square footage matter if my MLS shows a different number?
- Yes, appraisers verify measurements for gross living area and will rely on their data; provide plans or surveys if you believe the MLS figure is more accurate.
What is the difference between an appraisal, a CMA, and an AVM?
- An appraisal is a licensed opinion of value for lending, a CMA is an agent’s pricing analysis for strategy, and an AVM is a computer model that estimates value using available data.
How do FHA and VA appraisals differ from conventional appraisals?
- FHA and VA appraisals include Minimum Property Requirements that can trigger repairs before closing, while conventional appraisals focus on market value under agency guidelines.
Where can I find recent sold comps for Macomb neighborhoods?
- Your agent can pull recent sold data from the local MLS; public records are also available through Macomb County’s Equalization and parcel resources for basic property details.
