If you need amortgagetobuy a home, your lender will require ahome appraisal—where a professional estimates the value of your place to make sure it’s at least enough to cover the mortgage. While the lender hires the appraiser, the buyer pays for it, which begs the question: What’s the cost of a home appraisal?
While the cost of a home appraisal varies by the size and location of your home among other factors, generally you can expect to pay around$300 or $400, according to recent estimates. Here’s what you’re getting for your money.
What home appraisers do
Appraisals are educated guesses by licensed or certified professionals on a home’svaluein the current market. Unlike ahome inspector, who looks for defects that could cost the buyer money down the road, an appraiser looks at home components that contribute to its value—mostly location, square footage, number of bedrooms and bathrooms, and overall condition, saysGeorge Alexaof Alexa Residential Appraisal in Fairfax Station, VA, who has appraised more than 16,000 properties in the past 30 years.
To assess a home’s value, theappraiserwill likely visit your home and compare it to nearby comparable homes, or “comps,” that have recently sold. This is similar to how yourRealtor® estimates a home’s value, but make no mistake, home appraisers don’t work for home sellers or buyers. They work for lenders and help them decide if the home is a sound investment and worthy of the loan you’re asking for.
In short, appraisers protect the bank and buyers from a bad deal, so they’re worth every penny.
What the appraised price means for you
Once the home appraisal is finished, you will receive a copy of the report from your bank. If the home’s appraised value ends up higher than what you’re paying, generally the deal will move forward.
If the appraised value is lower than what you offered, this can cause trouble, since your lender will offer you a mortgage only at the appraised price. Let’s say you need a loan for $250,000 but the appraisal comes in at $240,000. The bank will cover only $240,000, which means you’re $10,000 short of the money you need to buy the home.
But all is not lost! If your offer included an appraisal contingency, you can renegotiate the price with the seller and, if she doesn’t budge, walk away from the deal (and keep yourdeposit). Or you could decide to pay the additional $10,000 out of pocket so your home loan goes through. In either case, you have options, so discuss them with your Realtor.
Author:Leo Gonzalez Phone: 786-501-5518 Dated: October 1st 2016 Views: 76 About Leo: We are a team of committed Real Estate professionals serving Miami-Ft Lauderdale and the other areas...
View our latest blog posts in your RSS reader. Click here to access.
Terrabella Realty is a boutique operation with over 1 Billion dollars of closed sales over the past 10 years, We have experience in the South Florida real estate market and we have developed strategic alliances with Real Estate Firms in foreign countries like, Argentina, Colombia, Venezuela, Mexico, Ecuador, Canada, Russia, France, England and Israel, to name a few. We have over 80 sales associates ready, willing and able to assist on the sale of your property and we are experienced enough to help you price it right.
6 Fort Lauderdale Attractions That Prove Why Fort Lauderdale is No L
"Someone recommended Mr. Leo Gonzalez to help me with my house search. When I called him, he was inmediatly available and asked me what type of house I was looking for. He met me next day and only showed me houses that matched the criteria that I was looking for. Very punctual to all our appointments, Mr. Leo Gonzalez will always reply my e-mails or texts from his blackberry (so as soon as I asked him something, no matter what time it was he will answer inmediately), the way he presented himself was very professional, from the way he dressed to the way he talked. Very knowledgable. We found a house in less than 3 days. When it was time for me to make an offer, he negotiated everything, got me granite countertops, stainless steele appliances, the price went down thousands, he even negotiated with the loan processor so they could qualify me for a 100% loan. After we closed on the house, I couldn't wait in the office longer because I had to come back to work, he waited there and made sure that he received the house keys, then he drove to Brandon to drop them in my office. Bottom line, my experience with Mr. Leo Gonzalez was outstanding, I will recommend him to anyone, he definitely knows what he is doing"