How Much Does It Cost For a Home Appraisal
There are various reasons for a person to get a home appraisal. You may need one because you are applying for a loan. You may also need an estimation of the value of a property for sale because of divorce or estate tax settlements or to make an insurance claim.
The appraiser’s job is to assess and determine the house’s or condo’s value and provide a detailed report to you, the client. You need a state-certified appraiser if you are conducting an appraisal for a loan or if you are considering refinancing from a federally regulated lender.
Types of appraisals
There are two types of appraisals that can be performed. They are:
- A residential real estate appraisal is one that’s performed on homes and condos.
- Commercial appraisals are performed on commercial properties and multiunit buildings that generate income.
Factors that determine home appraisal cost
There are various factors that determine a home appraisal cost:
The market
A home’s cost depends on its geographic location and appraisers. The region is a factor because of regional rates and cost of living and other factors like competition in the industry.
It’s also worth remembering that your home appraisal cost may vary based on the reason it’s performed. It may be higher if you are doing it for a refinance loan and lower if you want to sell your home.
Flat rate
There are some home appraisers who charge a fixed rate for their work. Their fixed rate includes the number of bathrooms and bedrooms in the house, the house’s square footage, the number of renovations performed and the house’s existing condition. They then compare the collected data with data of homes sold in the region with other variables.
Size of the house or square footage
Sometimes the appraiser may charge an additional amount for appraising homes that exceed a certain size like 3,500 sq. Feet. This is for the extra time and effort the appraiser spends on the house appraisal.
Presence of something unique or special
There is a chance of the home appraisal cost escalating if your house had undergone extensive renovations, remodeling or lots of repair work. The appraiser’s results are based on the data pulled on similar homes that were sold, or are on the market for comparative analysis.
They will have to spend more time and money on their research when there’s something unique or special at your house.
Additional structures
Your home appraisal costs will also increase if your property has some additional structures like a barn. Some appraisers charge a fixed fee of about $50 per additional structure. Others charge based on the square footage of the additional structure.
Pro tip
Whatever the home appraisal cost may be, it’s just estimation for your home rates. Do not think that it determines your home’s actual selling price.