What Does An Appraisal Cost?

Ever order an appraisal?

What does it typically cost?

Money house.PNG‚ÄčBy Paul Johnson ~ Sun Point Appraisal

Today we are discussing appraisals of real estate. There are many different types of real estate and related appraisals reports. The cost of the exact type of report you are requesting varies based on the complexity of both the real estate itself and the report you are requesting.

In the appraisal industry the appraiser has to estimate the scope of work and amount of time required for what is being requested. If for example someone wants an appraisal on a 2000 square foot home on a 1/4 acre in a tract home subdivision in an area that has a good deal of transactions this may not be too difficult. However appraising a 2000 square foot home on 10 acres with a barn, irrigation rights, and on well and septic in a market with low density housing and very few annual transactions will typically be more complex.

Residential Appraisals

A standard residential appraisal (meaning not complex) of a home in a Metro Phoenix location, for example, should be $350 to $450. This would include a general purpose report for a individual or a 1004 FNMA report for financing, most likely. These reports are on a preprinted form with information regarding your home on the first page followed by how it compares to other similar properties in the market that have sold on subsequent pages.

Commercial Appraisals

Commercial appraisals are typically three times this amount $900 to $3,000 to start and written in a narrative format, sometimes as many as 100 pages. Larger scale projects may be significantly higher. The level of detail and associated cost is based on the scope of work requested. This is determined by what the purpose of the appraisal is and the required scope of work required.

Appraisals For Financing

When you are paying for an appraisal through a bank or lender you may end up paying much more. Industry regulations have imposed a required barrier between a person originating your loan (loan officer) and the appraiser, in most cases. A lender can have a in house appraisal department set up to perform this function or an Appraisal Management Company (AMC) is hired to play the middle barrier party. This will typically result in added costs of $75 to $200 to your appraisal netting a total appraisal cost closer to $450 to $550 for a standard non complex FNMA 1004.

Quotes Vary

Quotes will vary based on supply and demand. In a populated Metro location there will be many more appraisers than in a rural area. Different markets are busier at different times of the year and current housing market conditions.

Your best bet is call a few different companies You will find some may not be good to answer or even return your call and others may have no or bad reviews. So choose an appraiser that has experience and is available to answer questions before and after the appraisal.

Hope this is helpful and if you need any more information on a cost for an appraisal let us know.