A house appraisal is an evaluation of the value of a property by a licensed and trained professional called an appraiser. The purpose of an appraisal is to determine the fair market value of a property. The appraiser considers many factors when determining the value of a property, including the property’s size, location, condition, age, and any recent improvements/renovations, and they may look at comparable sales of similar properties in the area to determine the property’s value.
The appraisal is typically required by a lender as part of the mortgage process to ensure that the property being purchased is worth the amount of money being borrowed. The lender wants to ensure that the property can be sold for a sufficient amount to cover the loan if the borrower defaults on the mortgage.
Appraisals can also be useful for homeowners who want to sell their property, refinance their mortgage, or assess their property for tax purposes. The appraisal provides an objective, professional opinion of the property’s value, which can help ensure that the seller or homeowner is getting a fair price.
How much is an appraisal and who pays?
The cost of an appraisal can vary, but is typically around $400-$600. The buyer pays for the appraisal, unless they’ve negotiated for the seller to pay instead.
Keep in mind that if the property is on a very large plot of land, the appraisal cost can be more because the appraiser often surveys the boundary lines of the property to make sure that the listed square acreage is correct.