If you are buying, selling, or refinancing a home, an appraisal is a necessity. Real estate appraisals offer an unbiased opinion on a property's worth. Appraisals are an important tool to ensure that buyers are not taking out loans worth more than the home they are purchasing. If you plan to take out a mortgage, your lender will likely require an appraisal. Here are three things that you should know about real estate appraisals.
How Appraisers Make Assessments
The first thing to know about appraisals is what factors an appraiser looks at to determine the value of a property. A real estate appraiser will look at the size of your home, the floor plan, current trends, and comparable sales when determining how much a property is worth. Appraisers are trained to offer an unbiased view of the value of a property. However, if an owner disagrees with the appraised value of their home, they can seek out a second opinion. It's also important to note that the economy and local real estate market can have significant impacts on an appraisal value.
The Cost Of An Appraisal
Another thing to consider is how much an appraisal costs. The cost of an appraisal for the average single-family home is between $300 and $450, but a few factors may lead to higher costs. Larger homes and properties will cost more to appraise than small or average size properties. Appraisals in cities and in areas with high costs of living also tend to be pricier. Properties that are damaged or in poor condition will also typically have higher appraisal costs.
How Long An Appraisal Takes
Depending on the size and condition of a property, the visual appraisal may take anywhere from half an hour to several hours. However, the research done into the home outside of the visual appraisal will take longer. An appraiser will take the time to look into the history of a property and the local real estate market when coming up with the final appraisal number. It will likely be a few days to even a few weeks before a property appraisal is finished.
Real estate appraisals are a way to get an unbiased view of the value of a property. Many real estate transactions require appraisals, and there are a few things to know. First, knowing how appraisers make their assessments can help you understand how the process works. How much you pay for an appraisal will vary depending on where you live and property size. The full appraisal process can take anywhere from a few days to a few weeks.
To learn more, contact a local real estate appraisal service.