Timing the Appraisal

the kitchen glamour shot I’ve been having more discussions than usual with my clients about when to order the appraisal.

Usually, once the lender orders the appraisal, you need to pay for it, somewhere around $350-$400.  That’s only fair, if the person does the work, they get paid for it, whether or not you buy the house.

A couple years ago, we wouldn’t order an appraisal until we were through inspections and repair negotiations - no sense in incurring the appraisal charge until we know if the house is in good shape and we know you’re going to buy it.

In today’s real estate market, however, sometimes appraisals are coming back marked as a declining market, which means you may have to pony up additional down payment.  This is something we might want to know sooner rather than later.

More often than not, my clients are deciding to have the appraisal done during their inspection period.  Yes, the incur that cost without having gone through repair negotiations, but at least they know sooner if the appraisal will come in fine or if it will cause problems.

Just like the cost of inspections, it’s what you pay as a home buyer, basically as risk mitigation.  Better to pay a bit up front and find out for sure if the property is sound and that you can get appropriate financing, then not pay those things and end up with a lemon.

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