Who Pays for Home Appraisals?
The cost of home appraisals depends on the property value, location, and size of your property. They cost a few hundred dollars and typically the buyer pays the fee at closing, although you can opt to pay it up-front. A good faith estimate—also known as a GFE—given to you by the lender will supply a fee for the appraisal.A “drive-by appraisal” does not pay as much attention to detail as the walk-through, and most lenders will not accept this appraisal. Instead of walking through the home, the appraiser drives by the property and then researches real estate records to come up with an estimate.
These home appraisals are cheaper than traditional ones, but you should ask your lender if they will consider it before you purchase.
How Long Do Home Appraisals Take?
For most loans, a typical property assessment takes a few hours or less, and a “drive-by” assessment will take significantly less time. Turnaround time should be within seven business days, although a busy market can mean a longer wait.The appraiser will give the final documents—called the appraisal report—to the lender, who is required to show it to the buyer. Make sure you obtain a copy for your own records.
Updated from a previous article by MortgageMatch.com
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