If you’re mulling over the idea of selling your home, you may want to know how much it’s worth. This is where a property appraisal is ideal. A home appraisal is a key part of the real estate market and is useful for buyers as well as sellers too.
A real estate appraisal is a professional valuation of your home. It lets you know how much it’s worth based upon a number of factors.
Whether you’re buying a house or selling your home, property appraisals are very useful. They make sure that a home is priced fairly and accurately and is neither under, nor overvalued.
But what does a home appraisal cost and what else do you need to know about appraisals?
What Does a Home Appraisal Entail?
Before we look at home appraisal cost, we first need to understand what a property appraisal involves. First of all home appraisal is not a home inspection. These are two completely different things albeit relevant to buying and selling homes. So bear in mind that you may also have to bear both the home appraisal cost home inspection cost.
We know that appraisals indicate how much a home is worth, but how do experts figure this out?
After receiving an order from a lender, an expert licensed appraiser will make an appointment with the current property owner. They will then view the property to determine its current state of repair, and how much it is worth. In some instances, appraisals are carried out remotely. This was the norm in 2020 – 2022 as a result of the Covid-19 pandemic.
An appraiser will assess the home and look at things like its décor, how structurally sound it is, what kind of condition it’s in, the exterior, the garden, and things of that nature. When coming up with a valuation, other things are also considered. Things such as local real estate price, the neighborhood, local amenities and facilities, and how real estate markets are doing.
How Much Does a Home Appraisal Cost?
If you are thinking of selling and want an appraisal, you’ll probably want to know how much it is going to cost. What sort of appraisal fees are expected?
Selling a property can be a costly affair and is more expensive than you think. This is why you need to understand the costs and any hidden fees. So, how much is a real estate appraisal cost?
We’d love to provide an exact figure but sadly we can’t. This is because costs vary from appraiser to appraiser, on top of numerous other factors too. What we can do, though, is give you a rough idea.
As of 2023, a single-family home appraisal was $500 according to the National Association of Realtors. Just be aware, this is only a rough figure. Costs usually range from $300 up to as much as $800.
Obviously, appraisals carried out on larger properties will be more expensive. Appraisals on homes in more affluent areas will also usually set you back more. This isn’t true of all appraisals, but at least it gives you a rough idea of home appraisal cost.
What Factors Affect Appraisal Cost?
As mentioned, appraisal cost can depend on heaps of factors, but what are they?
Here are a few factors affecting appraisal cost.
- Property size
- The purpose of the home appraisal
- The home appraisal company
- Property features
- Location
- Turnaround times
- Appraisal credentials
Is a Home Appraisal Worth the Cost?
Now that you know roughly how much a home appraisal costs you need to decide if it’s worth doing.
Most experts agree that when selling a property home appraisals are worth the money. Some deem them necessities in fact. This is because banks will be reluctant to lend the money for a mortgage if the appraised value of the property is less than the mortgage loan amount.
As well as that, home appraisals can also give you peace of mind. This is because you’ll know how much your home is worth, and how much to list it for sale. It also means that you’ll know a rough figure to agree on when you do find a buyer.
How Can I save Money on a Home Appraisal?
Selling a home isn’t a cheap process. There are dozens of hidden costs that can mount up and up. If you aren’t careful, these costs can really build up.
If you have decided that a real estate appraisal is needed there are ways of saving money. These include things such as:
- Schedule an appraisal in plenty of time
- Clean the property to make things easier for the appraiser
- Negotiate with the appraisers
- Be clear and honest about the condition of the property
- Ask if there is anything you can do to make things cheaper
What Should I Look for in an Appraiser?
If you are getting a home appraisal, the final step is actually finding a professional to do it.
Like all businesses, some home appraisal companies are better than others. As you want to get the best service for your money you need to find the right one for you. Here are a few things you should look for in an appraiser.
Qualifications
When looking for an appraisal company, make sure you check what qualifications and credentials they have. Go on their website and see if they’ve got them listed. If so, do a quick check to make sure they’re valid and up to date.
Experience
Experience is also very important when choosing a home appraisal company. All businesses have to begin somewhere, but the more experience they have, the more competent they should be.
Communication
When you reach out to a company about a home appraisal, make sure they’re good communicators. You will need to understand how the process works and it’s down to them to help you do that. Look for a company that’s easy to contact and keeps you updated throughout the appraisal.
Cost
Finally, in order to manage your budget, it’s important to find companies that offer competitive rates. As far as overall appraisal cost goes, get quotes and compare prices. Also don’t be scared to ask about discounts and offers.
