Getting an Appraisal

Ultimately, the property you want to buy or refinance is collateral for the loan you’re seeking. Your lender must receive an independent, professional appraisal of its value. Keep in mind this is not the same as an inspection, which is primarily concerned with the structural integrity of the home.

The appraiser’s job is to form an opinion of the property’s value based on its condition as well as other factors such as proximity to local schools and the value of similar homes bought and sold in your market. He or she will then issue an appraisal report that can vary in length from a few pages to more than a hundred. While the report is prepared for the lender, you will typically be provided a copy as a courtesy (by law, you may request a copy from your lender at any time).

On average, a home appraisal will cost between $300 and $400. It is required more than 90% of the time, whether you are buying or refinancing. This is the only expense the borrower can expect to pay directly and upfront.

A word of advice:

Scheduling an appraisal right away helps speed up the loan process by days – even weeks. Meanwhile, making your home “nice and tidy” is a nice touch but does nothing to increase its value.