Who pays the appraisal?

The party responsible for paying the appraisal is usually determined by the terms of the purchase contract. However, in most cases, it is the buyer who pays for the appraisal.

An appraisal is an important step in the home buying process. It is an unbiased estimate of the true value of a property, conducted by a licensed appraiser. The appraisal serves as a way to protect both the buyer and the lender by ensuring that the property is worth the amount being borrowed.

1. Is the appraisal cost negotiable?

Yes, the cost of the appraisal can sometimes be negotiated between the buyer and seller.

2. Can the seller pay for the appraisal?

While it is less common, the seller can agree to pay for the appraisal as part of the negotiations.

3. Why is the buyer typically responsible for paying the appraisal?

The buyer is usually responsible for paying the appraisal because it benefits them the most. The appraisal helps ensure that the buyer is not overpaying for the property.

4. How much does an appraisal cost?

The cost of an appraisal can vary depending on the location and size of the property, but it typically ranges from $300 to $500.

5. When is the appraisal paid for?

The appraisal fee is typically paid upfront before the appraisal is conducted.

6. Is the appraisal fee refundable?

In most cases, the appraisal fee is non-refundable, even if the sale falls through.

7. Can the buyer request a copy of the appraisal report?

Yes, the buyer has the right to request a copy of the appraisal report from the lender.

8. Can the buyer choose the appraiser?

While the buyer cannot choose the specific appraiser, they can request that the lender use an appraiser who is familiar with the local market.

9. Does the appraisal value have to match the purchase price?

The appraisal value does not have to match the purchase price, but it can affect the buyer’s ability to secure financing.

10. What happens if the appraisal value is lower than the purchase price?

If the appraisal value is lower than the purchase price, the buyer can try to renegotiate the price with the seller or come up with the difference in cash.

11. Can the buyer challenge the appraisal value?

While it is possible to challenge an appraisal value, it can be a lengthy and difficult process.

12. Can the seller see the results of the appraisal?

The seller does not have the legal right to see the results of the buyer’s appraisal, but they can request a copy from the buyer if they are willing to provide it.

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