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3 Things To Know About Home Appraisals

There are plenty of situations where a home appraisal is a necessity. Many real estate transactions are not possible without this assessment. A home appraisal will give you an accurate value for a property, whether you are buying, selling, or refinancing. Appraisals are unbiased and performed by qualified appraisers who have the training necessary to come up with the right number. Here are three things that you should know when it comes to home appraisals.

When They Are Necessary

Knowing when house appraisals are necessary is essential. There are a few situations where you may need to seek out one of these assessments. If you are selling your home, it's a good idea to get a home appraisal since it will let you know what your home is worth and where you should set your asking price. If you are buying a home, your lender will require an appraisal to ensure you are not borrowing more than the home is worth. Finally, if you are refinancing, you will also need an appraisal. Your lender will want your home to appraise for, at minimum, the amount you want to refinance for.

How Much They Cost

Home appraisals are one real estate cost you should budget for before buying, selling, or refinancing. The cost of house appraisals depends on the property's size, location, condition, and how challenging it is to appraise. Some homes will cost more to appraise than others. The average home appraisal will typically set you back between $300 and $450. Home appraisals in urban areas or for large properties can set you back between $500 and $800.

The Appraisal May Be Lower Than You Expect

Home appraisals are up to the appraiser's discretion, and on occasion, they may be lower than you expect. If you are trying to sell, a lower-than-expected appraisal may mean that you need to lower your sale price or have buyers walk away from your property. For buyers, a low appraisal may make their lender pull their financing. While a lower-than-expected appraisal can be challenging, you can dispute the appraisal if you feel that it is not correct. 

When it comes to home appraisals, there are a few things you should know. Home appraisals are necessary for many real estate transactions, including buying, selling, and refinancing homes. The cost of an appraisal varies, but you'll pay a few hundred dollars for one of these assessments in most cases. Appraisals can also be lower than expected, but you can dispute them if necessary. For more information about home appraisals, contact a real estate agency.