Tuesday, August 21, 2018 / by Ann Marie Sharp
When you and your REALTOR® wrote your purchase offer for a home, you most likely made your offer contingent on several items, including financing, a home inspection, and a home appraisal. These estimates of how much this house is worth are an important step in the home-buying process that can't be skipped.
Your lender will choose an appraiser: No matter where you're borrowing from, your lender will be the one to select an appraiser to evaluate this home. Mortgage lenders require an appraisal before providing a loan for the simple reason that the property serves as collateral for the loan. A lender will only approve a loan for a property that appraises for the full sale price of the home—or more.
As the buyer, you are ultimately responsible for the appraiser's fee: For most loans, a typical property appraisal takes a few hours, and costs around $300 or $500. Generally, appraisal ...