While the lender often knows of reputable companies and individual appraisers, these individuals remain impartial and separate from the lender. Home appraisers do not work for you, the real estate agent, or lender. One of the important features of a home appraisal is that it is an independent, unbiased review. The buyer usually pays for the appraisal, unless they negotiate for the seller to cover this cost. Home appraisals can cost anywhere between $300 and $600, depending on the size of the home, if it is a single- or multi-family property, and if it sits on a large piece of land that must also be surveyed. What Is a Home Appraisal?Ī home appraisal is a third-party independent review of the home’s condition, features, and other homes on the market to determine a dollar value of the home’s worth at the time of purchase or refinance. That’s where the home appraisal comes in. But before the lender decides to loan out that money, they want to know that the home is actually worth the purchase price. Working with a bank, credit union, or other lending organization, buyers agree to a purchase price and terms of the loan. Most home buyers, whether first-time or experienced, use a home loan called a mortgage to finance the purchase of their home. Once you find the perfect home and have a sales contract, it is time to actually get to the business of arranging the purchase. Searching for and finding the perfect new home is just one step of the home buying process.
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