Get to Know Your Homebuying Team: Part Two

Appraisers, Contractors, Energy Raters

Like many big goals, purchasing a home requires teamwork. A whole network of industry professionals are involved in the process to connect the homebuyer to the right loan for their unique financial circumstances, help them find that dream home and make sure that the home is safe and affordable.

Get to know a few of the key players below and read Part One of this series to learn about Lenders, Real Estate Licensees, and Home inspectors.

Some of these professionals will become familiar faces throughout the homebuying process while others work behind the scenes to make your home purchase happen.

Appraiser

A real estate appraiser is a third party hired by the lender to inspect the home and assess the property’s condition and marketability. The appraiser will complete an appraisal, an opinion of the value of a home based on the principles of the Uniform Standards of Appraisal Practices and Procedures.

In a mortgage lending scenario, the appraisal takes place to ensure the home is worth what the seller is asking. Appraisers play an essential role in helping you feel confident that you’re paying a fair price for your new home.

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Example: If you offer $425,000 for a home, your lender will need to ensure the home is worth at least that amount. If the appraisal shows that the home is only worth $400,000, the lender will likely only lend you $400,000 and you will have to renegotiate with the seller, or come up with the extra $25,000 to make up the difference.

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To determine the value of your home, appraisers look at the size, age and condition and compare it to similar homes in your area. Some property conditions that the appraiser will evaluate include building materials, structural issues, home improvements that might add value, hazards that might impact the habitability of the home, and how the home has been maintained over the years. 

As a homebuyer you won’t typically hire or communicate with the appraiser directly. Instead, the mortgage lender will hire the appraiser and charge the appraisal fee at the time of closing. Nevertheless, you will want to review the appraisal to make sure you understand your property’s features and value.

Learn more about the role of appraisers.

Energy Rater

Energy raters are certified professionals who use software to perform a full energy rating of a home. As part of the rating the rater will assess insulation levels, heating systems, windows and doors, perform a blower door test to evaluate air leakage, and more.

Existing homeowners might hire an energy rater to learn how their home uses energy and identify ways to reduce energy use. For buyers who are purchasing a home using an AHFC mortgage product, energy raters are an essential part of the homebuying team.

In Alaska, building energy use standards for thermal resistance, air leakage, moisture protection and ventilation are established by the Alaska Housing Building Energy Efficiency Standard (BEES). BEES was established by the State of Alaska to promote the construction of energy efficient buildings. Homes constructed on or after January 1, 1992 must comply with BEES to qualify for mortgage financing through Alaska Housing Finance Corporation.

Compliance with BEES is achieved by completing the PUR-101 and PUR-102 forms. An AHFC-certified energy rater is the only authorized entity who can complete the PUR-101.

Did You Know? AHFC offers the Energy Efficiency Interest Rate Reduction. This loan feature is available to qualified Alaskans choosing a home loan with AHFC and allows the borrower to reduce the interest rate on a mortgage used to finance an energy-efficient property. To qualify for an Energy Efficiency Interest Rate Reduction the home will need to be rated by a certified home energy rater.

Find an AHFC-certified energy rater.

Contractor

If you’re buying an older home and considering renovations, you’ll need a contractor to provide renovation estimates. A contractor can also help to identify the solutions for significant issues that may have been identified during a home inspection or appraisal. They can provide an estimate of repair costs that you can reference during your negotiation with the seller.

If you’re buying a new construction home a general contractor will manage the entire building project from start to finish. The contractor will already be in play if you are buying from a builder. You’ll hire the contractor yourself if you are building a custom new home.

Buying or building a new home? Find out if you qualify for $10,000 through AHFC’s New Home Construction Rebate.

Looking to purchase and renovate an existing home? Learn about AHFC’s Renovation Loans.

Learn More

There’s a lot more to learn in FinallyHome! Sign up for the no-cost homebuyer education class to take your first step toward homeownership.

Want to learn how to improve the energy efficiency of your home? Get energy saving tips from AHFC’s department of Research and Rural Development.