**The home appraisal in escrow is typically paid for by the buyer.**
When buying a home, there are many steps involved in the process, one of which is getting the home appraised. An appraisal is an evaluation of the property’s value by a licensed appraiser to ensure that the home is worth the amount of money being loaned for it. In escrow, the buyer is usually responsible for paying for the home appraisal, as it is for their benefit to know the true value of the property.
FAQs on Who pays the home appraisal in escrow:
1. Can the seller pay for the home appraisal in escrow?
In some cases, the seller may offer to pay for the home appraisal to sweeten the deal for the buyer, but it is not common practice.
2. Why is the buyer responsible for paying the home appraisal in escrow?
Since the appraisal is for the benefit of the buyer to ensure they are not overpaying for the property, it makes sense for the buyer to cover this cost.
3. How much does a home appraisal cost in escrow?
The cost of a home appraisal can vary depending on the location and size of the property, but it typically ranges from $300 to $500.
4. When does the home appraisal take place in escrow?
The home appraisal usually takes place after the buyer and seller have agreed on a purchase price and the buyer has secured a mortgage loan.
5. What happens if the home appraisal comes in lower than the purchase price in escrow?
If the home appraisal comes in lower than the purchase price, the buyer may need to renegotiate with the seller or come up with the difference in cash.
6. Can the buyer choose the appraiser in escrow?
While the buyer cannot choose the specific appraiser, they can request a different one if they have concerns about bias or competence.
7. Who receives a copy of the home appraisal report in escrow?
Both the buyer and the lender will receive a copy of the home appraisal report to review.
8. Is the home appraisal fee refundable in escrow?
The home appraisal fee is typically non-refundable, even if the deal falls through for any reason.
9. Do cash buyers need to get a home appraisal in escrow?
Cash buyers are not required to get a home appraisal, but it is still recommended to ensure they are not overpaying for the property.
10. Can the home appraisal be waived in escrow?
In some cases, the home appraisal may be waived by the lender if they feel confident in the property’s value based on other factors.
11. Is the home appraisal different from a home inspection in escrow?
Yes, the home appraisal is an evaluation of the property’s value, while a home inspection is a thorough examination of the property’s condition.
12. Can the buyer challenge the home appraisal results in escrow?
If the buyer disagrees with the home appraisal results, they can provide additional information or evidence to the appraiser for reconsideration.