If you are buying or refinancing
Ask the lender whether an appraisal is required, how it must be ordered and who pays. Requirements, waivers, fees and payment terms depend on the transaction. Confirm those terms before arranging a separate private report.
An appraisal gives the lender and other intended users an opinion of value. It does not guarantee a sound investment or replace a home inspection. A cash buyer can also consider a private appraisal when an independent value opinion would help with the decision.
If you are selling
A seller can ask an agent for a comparative market analysis to discuss an asking price. A private appraisal may be useful when the house is unusual, the available sales are hard to interpret or the owner needs an independent report for another purpose.
Consider what the report would change about your decision. A buyer’s lender may have its own ordering requirements, so a seller’s appraisal should not be assumed to replace the lender’s work.
If the home is part of a family matter
An inherited property, a divorce buyout or a retrospective tax-related question may call for a value on a particular date. Ask the attorney, tax adviser or intended recipient what is needed, then request an appraisal quote for that purpose.
The report’s value and the amount of a mortgage answer different questions. Agree what property interest is being appraised and who may rely on the report.
Ask what the quote covers
- What property, valuation date and intended use are included?
- Who receives the report and who is an intended user?
- What are the fee, payment terms and delivery estimate?
- Is additional work, such as testimony, quoted separately?
A useful quote fits the assignment. A general fee mentioned online is not a quote for your home.