Appraisal fees going up and taking longer for a mortgage
Appraisal fees are going up and turn around times are getting longer, learn about the appraisal waiver and if it is offered.
Let's look at what a home appraisal is.
What Is A Home Appraisal?
An appraisal is simply a valuation of a piece of real estate. The appraiser determines the market value of the home based on their knowledge of the local property market. This involves comparing the home with recent sales of other, similar, nearby homes. But it also involves a judgment of how the property matches up to those homes.
Why Are Home Appraisal Costs So High?
There are several factors effecting higher appraisals including inflation, the cost of doing business, and shortage of qualified appraisers.
1. Inflation
Inflation is obviously a major reason, as $1 in 1990 is worth the same as $2.08 today. However, this alone would only account for an increase of a couple hundred dollars in an appraisal price tag.
2. Appraisers Have Higher Fees
This relates to inflation, but appraisers themselves have much higher fees now too for licensing, insurance, vehicle costs, software, continuing education, and more.
3. Appraiser Shortage
This is the main reason appraisal costs are so high today.
Appraisers are aging out and retiring, and new people are not coming into the industry because of the difficult licensing and training requirements The recent dip in interest rates has also created a surge in refinances that take up appraisers’ time.
How High Are Appraisal Costs Today?
Appraisal costs have risen from $400 to over $1,000 in some cases for a standard appraisal.
How Can You Avoid Higher Appraisal Costs?
Unfortunately, higher appraisal costs are here to stay for awhile until housing demand decreases or more appraisers enter the job market.
However, there are a few things you can do to avoid increases in fees throughout your home buying process.
1. Don't rush an appraisal.
2. Be flexible.
3. Ask the lender to shop the appraiser.
In general, appraisals are a small portion of your overall mortgage costs. The real way to save money is to find the best loan type with the best rates that matches your needs. Check out your loan options and then give us a call, (727) 784-5555.
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