How much will your appraisal cost? This is a question many people wonder at some point in their real estate transaction.
The cost of a home appraisal is typically paid in advance by the homebuyer after acceptance. This usually happens once the inspection is completed to satisfaction.
However, fees will vary. This variation is largely dependent upon location, complexity of the appraisal, and to some degree, market demand.
In our San Antonio area, residential appraisal fees will typically cost between $350 to $500. If a property is a farm, ranch, acreage, or is complex in another way, this amount can be a little more.
So, how is an appraiser selected? This is something that will depend on your lender and that you can ask them about ahead of time. However, most lenders tend to either keep a list of trusted appraisers or will make use of an appraiser management company.
“You should ask your mortgage lender about the cost of appraisal as soon as possible.”
However, after the Dodd-Frank era, it has since been necessary that lenders rotate their certified area appraisers.
While they are aware of the stakes for both the buyer and seller, an appraiser cannot base their appraisal strictly on the sales price.Appraisers will look at comparable homes to help them determine value.
Low appraisals can happen. At that time, however, you have a couple of options. You can either renegotiate the contract or, in some cases, you may get a second opinion.
Ultimately, if you are curious about the cost of a home appraisal, this is something you should ask your mortgage lender about as soon as possible so that you can accurately factor it into your closing costs.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.