Question:

How much does a real estate appraisal cost and what is the difference between appraised value and market value?

Answer:

How much a real estate appraisal costs is estimated by professional appraisers on the basis of recently sold properties of comparable characteristics - footage, location and construction. On average, a $250,000 house will cost $250 - $350 to appraise. The most commonly used appraisal report accepted by mortgage businesses is the URAR – the Uniform Residential Appraisal Report. It is going to cost more than the abbreviated Drive By Appraisal, which may not be considered detailed enough by some lenders.

Alternatives to Real Estate Appraisal

There is also another way to determine how much a property costs beside the real estate appraisal. It is called comparative market analysis and represents an informal estimate of the price your property can bring you at a certain point.

Appraised value of a property is the professional opinion of an appraiser of the worth of the property at that time. Even if it is low, it may rise after some repairs and small improvements are done.

Market value is the potential income the house may bring to the owner after sale in some point of time and can be determined using a comparative market analysis.

Both can be used by the mortgage company issuing the loan to determine its size as they would like the property value to be at least as the size of the loan.

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Common misspellings: mortage and morgage