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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. A is conducted by a licensed professional to determine what your home is worth before you put it on the market and sell it. The process could cost several hundred dollars, depending on factors such as property size and location. How does a home appraisal work
The appraiser looks at a number of factors, including comparable homes within the local market, location, age and condition of the home, structural construction and materials, size of the home and square footage, updates and improvements, style, curb appeal, the economy and local market. Under federal and state law, appraisals are required to be independent and objective. An appraiser will conduct a visual inspection of the home and look at recent home sales in the area, known as Based on the information gathered, the appraiser will determine the home’s value. With rare exceptions, mortgage lenders always require appraisals both for home purchases and when a homeowner refinances a mortgage. Why is an appraisal needed
An appraisal benefits both the homeowner and potential buyer. “An appraisal is always in the best interest of the buyer as it will assess the value of the property and help the buyer have confidence in the purchase price of the home,” Boies says. A property appraisal is also important for the homeowner or potential buyer because it establishes the parameters of the mortgage loan. “Once the value of the home is established through the appraisal, the lender can make an offer based on the available loan-to-value ratio,” McClary says. “Property appraisals also help determine the cost of the loan. A well-maintained property can lead to a loan with a more favorable interest rate than one that is in disrepair because of the direct effect on loan-to-value ratio.” How much does a home appraisal cost
A typical, single-family home appraisal ranges from $300 to $450, though that can vary depending on a number of factors including the size of the home, the value of the property, condition of the property and the level of detail involved in the appraisal. A large home or property will usually be more expensive to have appraised. In larger cities or areas with higher living costs, the range could be $500 to $800 or more. What factors influence the home appraisal cost
Home inspection vs home appraisal
Unlike an appraiser, the is to evaluate the home for signs of damage or issues. An appraiser might assume the dishwasher is working if it’s not leaking, for example, but a home inspector would run it to confirm it functions properly. Appraisals and inspections have some similarities, though, including that they take into account the condition of the home. Both services can cost about the same, too. Who pays for a home appraisal
The appraisal fee is typically paid by the homebuyer. The appraisal is usually ordered by the buyer’s mortgage lender. Under federal regulations, neither the buyer nor the seller can choose the appraiser themselves. The lender is also prohibited from having a relationship with the appraiser so that there is a fair, unbiased valuation of the home. How do you find an appraiser
Ask your real estate agent for a recommendation. Make sure that your appraiser has experience doing appraisals for home sales, and that the appraiser is familiar with your property type specifically. The government maintains a where you can verify the appraiser’s credentials. Learn more
SHARE: Ruben Çağınalp is an associate writer for Bankrate, focusing on mortgage topics. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Related Articles