FAQ Appraisal Questions

12 Mar FAQ Appraisal Questions

Below are some common questions asked surrounding obtaining a real estate appraisal.

1) What does having an appraisal mean?

It means hiring a professional licensed appraiser that is giving an independent, unbiased assessment of a property’s fair market value.

2) What is the purpose of an appraisal?

The purpose of an appraisal is to determine and estimate the fair market value of a property. An appraisal is commonly used in mortgage transactions like a refinance, purchase, or HELOCs.  Other common non-lending (private) uses are for estate, date of death/ retrospective, trusts, divorces, pre/post listings, tax appeal.

3) How much does it cost to get an appraisal?

The appraisal costs can range depending on the assignment type, scope of work (full inspection, exterior/drive by or desktop) and complexities involved. For a SFR, most appraisal fees commonly range from $450 to $650. Every property is reviewed and fee quoted to a client. Atypical, more complex properties are quoted individually and can range higher in costs.

4) What are 2 types of appraisals?

Two types of appraisals are the sales comparison approach and cost approach. The primary method for valuing SFRs is the sales comparison approach. The method takes into consideration of the sales and listings in your neighborhood. Sales/listings are selected based upon but not limited to: location, size/gla (gross living area), time of sale, condition/upgrades/updates, lot size, and amenities (pool, workshop, solar, etc.)

Every appraisal assignment has specific unique details and having a discussion when obtaining an appraisal fee quote helps both the appraiser and client set expectations.