If you need a loan as a Buyer it becomes Your Lenders and hence
your requirement, hence you pay.
If you were all Cash you would not be faced with such an issue, unless for your peace of mind you
wanted one done.
It will cost between $400 - $550 for a standard home.
Quick answer: You, as the buyer will pay for the appraisal fee and it's about $500 for an appraisal.
Might I suggest--since I know that you've asked a lot of questions about home buying in the recent past--that you contact and hire a great Realtor to help you. One of the things I provide to all of my buyers are three (3) primers for "Home Buying". One of the documents I send provides buying strategies, another is about short sales and REOs, and the last is about the title and escrow process including the fees that the buyer can typically expect to pay here in the Santa Clara County. I'm sure your Realtor, if you ask, will have similar documents that they can provide to you too!
If you haven't found a great Realtor yet, why not give a few of the Trulia agents here on the site a call and hire a good agent to help you. I promise it will make the process of buying much more pleasant and far less frustrating. A good agent will not only represent you in the sale, but our job will be to educate you regarding the entire process. Believe me, at the end of the transaction--if I've done my job properly--my clients will know as much about buying homes and the process of escrow as I do.
Area Pro Realty-People's Choice
Tel (408) 426-1616
Call me about Buyer rebates to 1.5% of the home purchase price, and low cost listing fees!
Check out the list of homes in San Jose on http://www.HomePath.com
There are 35 HomePath Foreclosures in San Jose today.
Note: You MUST use a Registered Agent to make an offer on a HomePath / Fannie Mae foreclosure.
In general, the appraisal is the BUYER'S COST. But if you are paying cash, you don't have to get an appraisal. But if you are getting a loan from a bank, the bank requires you to get an appraisal-- and they charge you for it. NOW, the SELLER can pay for it for you-- by giving you Closing Cost Money to help you pay for the Appraisal and other fees from your bank.
IF THIS ANSWERED YOUR QUESTION: PLEASE GIVE ME A "THUMBS UP!" or "BEST ANSWER!"
O.k. I'm in too! The buyer pays for the apprasial and it us usually done through your lender.
Unless of course there are some issues and the seller needs to get one.. otherwise, that is part of buyng a home.
The appraisal fee is paid for by the buyer. The fee varies widely. One of the important factors in the amount of the fee is the complexity of the appraisal assignment itself. An appraisal assignment for a single family tract built house in San Jose is generally considered to be a relatively simple appraisal assignment. In contrast, an appraisal assignment for a Mansion in Hillsborough on a 5 Acre Estate is generally considered to be a relatively Complex Appraisal Assignment. the appraisal fees for the Mansion in Hillsborough will be far more.
I will limit my discussion to relatively simple appraisal assignments for tract built single family homes in San Jose.
Appraisals are now ordered through Appraisal Management Companies. Essentially the Appraisal Management Company adds to the cost of the Appraisal because the Appraisal Management Companies expect to make money too, and keep part of the Appraiser's fee for themselves.
For a relatively simple appraisal for a single family tract house, I have seen fees as low as $300 to as high as $600 to the Appraisal Management Company.
I have talked with appraisers who say that they were paid as low as $150 by an Appraisal Management Company that charged $600 for the appraisal, paid the appraiser $150, and kept the other $450 for themselves . I have talked with other appraisers who say they are paid $350 to $450 for a relatively simple appraisal for a single family tract house.
It appears to me that the Appraisal Management Companies who were supposed to be a solution to the problem of poor quality appraisals, have instead become part of the problem, by selecting, in some cases the lowest quality, and lowest level of competence appraisers who are willing to work for very low fees, which permits the Appraisal Management Company to keep more of the appraisal fee for themselves.
Unfortunately, it appears to me that we have a long way to go to make effective resolution to the problems of the current lending crisis.
Essentially, the buyer is expected to pay the appraisal fee, and appraisal fees vary widely depending upon which Appraisal Management Company the lender is using.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: firstname.lastname@example.org
The appraisal is done as a way of your lender knowing that their interest in the property is secure. It is the bank's objective to know that the home is worth what you are paying for it so they are safe lending you the money to buy it.
So because it is a fee associated with your loan, the Appraisal is typically a buyer expense and it is often collected upfront from your lender. Although fees and rates may vary state to state, I would think that depending on the size of the home a normal appraisal may run you in the neighborhood of $350-550.
I hope this information is helpful to you.
Best of luck