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An appraiser must be certified to carry out the appraisal for a particular loan transaction. For instance, when a buyer opts for an FHA loan, an FHA appraisal is conducted.
If they later choose to refinance their FHA loan into a conventional loan, the mortgage company will arrange for a new appraisal. Most appraisers perform both types of appraisals, so they’re able to convert the initial evaluation, but this conversion comes with a cost.
Don’t stress about any conflict of interest with the mortgage company finding the appraiser for the property. Lenders are prohibited from having direct contact with appraisers related to a specific transaction.
When sellers get a pre-listing appraisal done, they’re the ones who pay for it. But when the appraisal is part of the escrow process, it’s the buyer who pays the appraiser’s fees — whether that appraiser is found by the bank or the buyer.
Appraisers typically charge between $314 and $424 for an appraisal, although the national average is $358.
What does a home appraiser look at?
Basically, the appraiser looks at your house in the same way your buyer did when deciding to buy it. Only you don’t need to worry about keeping your home staged and uncluttered for the appraiser because they don’t care about the look of your furniture, decorating, or your personal items.
The appraiser isn’t just going to look at the data provided in the multiple listing service (MLS), especially when it comes to square footage. Instead, they’re going to bring their own tape measure.
“An appraiser looks at the general condition of the property and its characteristics, including age, square footage, bedrooms and baths, quality, updating and remodeling, lot size, location, view, and style,” says Samuels.
“County records and other sources may not have the accurate square footage, so the appraisal can determine the property’s living area, which is a large part in determining value.”
The appraiser will also take their own photos of the house for the lender, mainly because their photos won’t have been touched up or altered by a photo editor like the listing photos. This includes pictures of the interior and exterior, as well as close-up photographs of features and flaws.
Images of any neighborhood features that impact your home’s valuation (like nearby train tracks or telephone poles) will be included in the appraisal, too.
Aside from the condition and location of your home, the other big factor appraisers evaluate is the local comps.
