Frequently Asked Questions

Appraisals are helpful for the realtor who is about to list a home for sale and wants know its value to price it competitively. They are necessary in a divorce when the occupants sell the property, or one buys out the other. They are useful for the land lord who needs to know how much rent is in an area. They are useful for the flipper to know if the renovations will be profitable. They are helpful if you need to dispute a tax assessment. They are necessary when refinancing and purchasing a home for a mortgage transaction. 

Cost varies on many factors such as size, location, purpose of appraisal, and complexity of the subject property. A ball park figure for your average 3 bedroom home in a cookie cutter neighborhood is $400-$550. Appraisals for complex properties can range $700-$4,000.  The higher priced complex properties usually include travel expenses. 

If you are taking out a mortgage the lender will require an appraisal before closing. This is to make sure the lender can sell the home to recoup the loan value in the event the buyer defaults on the loan. 

This happens frequently and you have a few options. The most common options are that the buyer and seller will negotiate the price, or the buyer will bring cash to compensate for the gap in lending. 

Sales comparison approach is the most common method appraisers use. That consists of finding homes that have sold in your area that are similar in quality, condition, age, location, view, lot size, bedroom count, garage count, bathroom count, and sold recently. Since its not likely that an identical home sold yesterday right next door, the appraiser has to find each of these features in different homes then adjust out the variables to make the comparable sale like the subject.  The appraiser might use a bigger home due to similar quality, then make adjustments downward for square footage. If there are scarce sales, the appraiser may have to go back in time, then adjust the comparable sale for changes in the market. Whatever the appraiser makes an adjustment for; needs to be backed by market data. 

In most circumstances, nothing. The appraiser needs to see the home and the things permanetly affixed to it. Make sure all rooms are accessible. Cleaning up is only necessary if the floors, kitchen..etc are not visable due to personal belongings. 

A typical 2000 Square foot, one story home, in a developed neighborhood takes 20 minutes. 

Two story homes can take up to twice as long due to having to measure square footage from the inside of the 2nd story. A 2,000 to 5,000 sf two story home takes an average of 45 minutes.  

The largest inspected so far was 22,000 square foot and it took two and a half hours. 

If the home is being appraised for an FHA loan, add on 25 minutes. FHA inspections require testing of appliances, and inspecting various other items. 

Its helpful but not necessary. If kids will be present, there needs to be an adult present as well.