Getting an Appraisal
Why might you need an appraisal?
How do appraisals work?
Lenders need a professional, independent appraisal of the property you want to buy or refinance to ensure that it is worth at least as much as they are being asked to lend on it.
A professional, independent appraiser will usually visit your home and inspect its interior and exterior. The appraiser doesn’t want to buy your home. Do not postpone the appraisal until you get a chance to “clean up a little.” Cleaning does not make your appraised value higher! And delaying adds time to an already lengthy process.
The appraiser will form an opinion on the probable market value of the property considering sales of similar homes in the area that have recently sold among other factors. He or she will prepare an appraisal report explaining the conclusion. The appraisal is paid for by you and you will receive a copy as soon as it is released. The lender is not allowed to distribute the appraisal to anyone but you, so your prospective property information is protected.
An appraisal can cost from $450 to $650, which would include a second visit if necessary. If you are purchasing a “flip” property, there will be a second required appraisal, paid for by us, your lender.