People often confuse a home inspection with a home appraisal. To clarify, a home inspection is to determine the condition of the home and inclusions. A home appraisal is a formal opinion of value to determine what the property is worth.
If you’re getting a new mortgage your lender will require an appraisal in order to justify the sales price. Your lender will order the appraisal for you. And it will be paid by you, the buyer. Typically lenders will require that payment up front, at the time appraisal is ordered.
Here in El Paso County, appraisals usually cost around $350-400. But I just read those rates are going up. Effective November 1st the cost for a VA appraisal is now going to be $750. That’s a big jump. But it makes sense. Our area sees so many VA loan, and those VA appraisers are swamped with the increased workload of the past few years. In speaking with a lender friend of mine, she said that there is no new set appraisal rate for Conventional and FHA loans, but she thinks they will hover around $650 and VA ones will be at $750.
Increased home sales is obviously a good thing. Our housing market has been on the upswing for the past seven years in a row. Cool! But our buyers are going to feel more of a sting when they are confronted with these new, higher fees.