I live in the state of Colorado. I just passed the credit check and I am interested in buying a house. My Realtor is asking for $1,400 to appraise the house. Is this too much? Also, what is appraisal and why does it cost so much. Thanks for your help!
2007-03-01 11:24:29 · 6 answers · asked by Jesus F 1 in Business & Finance ➔ Renting & Real Estate
The appraisal is going to give you an idea of what the house is worth - this should be about the same amount you're going to pay for it. The appraiser should provide you values based on market comparison (sales approach) and how much it would cost to build the house (cost approach); probably with more weight given to the sales approach.
The amount you've quoted sounds really high - maybe 2-3 times what it should be for a single family residence. The appraisal is mainly for the benefit of the lender, who will require that an appraisal be completed before they fund a loan. First identify who your lender will be (unless you're paying all cash), and then identfy an appraiser that will be acceptable to them. This a legitimate reason to back away from your realtor's "recommendation".
2007-03-01 11:33:55 · answer #1 · answered by Marko 6 · 0⤊ 0⤋
An appraisal is a formal written opinion of what a qualified licensed person think is the value of a property either commercial or residential.
Now about that $1,400 for an appraisal,if your house is in excess of a million dollars where most lenders will want more than one appraisal I would check the Kool Aid my real estate agent is drinking.
These things normally are somewhere around $500.00 to $700.00 some are lower and some might be higher, but for a conventional loan amount of around $400,000 or less.
As a matter of fact I would probably be looking for another.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-01 19:40:49 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
I live in California. An appraiser is licensed by the state to provide an honest, educated estimate of the value of a property. The cheapest appraiser I know charges $275 for a single family residence. The most expensive charges $450.00. I can't imagine paying $1400.00 for an appraisal, unless you are buying a multi-million dollar house, and even then I'd question it. You may need a new Realtor, unless he/she can justify this amount to your satisfaction.
2007-03-01 19:47:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Before a bank is able to loan you or work out a mortgage on your house, they need to know how much is its value thus the need for an appraisal by an independent valuer/Realtor. You may shop around for quotes from various valuers/Realtors to determine if the asking price of S$1,400 is reasonable.
2007-03-01 19:47:30 · answer #4 · answered by SGElite 7 · 0⤊ 0⤋
The appraisal is to protect the bank and not you. I have know idea why they have the buyer pay for this since there is no benefit to them. You pay to see if they wont loan you to much money.
I say the Realtor should pay this fee so if it is over priced and you can not get a loan they should bit the bullet not the buyer.
2007-03-01 22:13:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋
An Appraisal is where someone comes and looks at the house and the area it's in and officially decides how much they think it's worth.
$1400 is only a little bit high.
2007-03-01 19:29:09 · answer #6 · answered by heartscared 3 · 0⤊ 0⤋