What to Expect for a Home Appraisal

Market Value

• A home appraisal gives you a professional's opinion on the cost of the home. It gives you a market value on which you can base your home sales.

Bank Loans

• Banks use a home appraisal to determine how much to loan you to make improvements on the home or to purchase a new home.

Sales Comparison

• A home appraisal takes into account what other homes are selling for, how long it is taking them to sell, the condition of the neighborhood, and other factors that affect the selling price.

Replacement Costs Estimation

• The home appraisal looks at how much it would cost to replace your home in cases of destruction by natural disasters. This estimation applies mainly to new homes.

Upfront Fees

• A home appraiser is paid upfront for a home appraisal. Usually, the buyer pays before closing on the house. Fees vary from state to state, typically ranging from $200 to $450.