1. The buyer pays for the appraisal, which can cost from $250 to $500.
2. Appraisers are licensed by individual states.
3. An appraiser compares the features and amenities of a property to those of at least three other comparable properties sold in the area.
4. Lenders require appraisals to be done when a buyer wants a loan for a home purchase or refinance.
Negotiate an appraisal and loan contingency when you purchase a home so you can get your deposit back if the home appraises for lower than the sales price.
compares it to 3 other properties that are similar that closed within the last 6 months within 1 mile of the subject properties.
makes adjustments for square footage of house and lot, amount of bedrooms and baths, amenities such as cental air and condition (besides age).
Checks with the municipality it is located in to see if the subject is what is permitted.
If an investment property, the appraiser does a rent survey.