How much does a home appraisal cost? It depends on several factors

Source: Ruben Caginalp via MSN.com

A home appraisal 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? 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 comparables or “comps”.  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.

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.

A professional appraiser’s fees are regulated in part by the Dodd-Frank Wall Street Reform and Consumer Protection Act and must be reasonable and customary for the geographic market. Continue reading the rest of the article HERE