Do I have to pay an appraisal fee if I am buying cash?

Asked by Nicholasmolinaro, 33166 Thu Sep 30, 2010

Help the community by answering this question:

+ web reference
Web reference:

Answers

17
John Walin, Agent, Libertyville, IL
Mon Nov 1, 2010
I recommend to my cash buyers that they put in the contract an appraisal contingency, in the event the sales price doesn't match the appraisal. As mentioned, buying as-is with cash is scarey enough and HOA lender questionairre is a must too if the home is regulated by an association. Many under water HOA's in Miami. Talk to a local agent and pay for appraisal, home inspection and attorney. You don't want to find out that a supposed bargain has deed issues, bad HOA position, or priced to high in a depreciating market. Spring of 2009 many bought and prices have fallen since and some of those are back on market under purchase price from a year ago.

If you like my answer, please give me a thumbs up or select best answer.
1 vote
Maggie Hawk, Agent, New Smyrna Beach, FL
Thu Sep 30, 2010
Nicholas,
That all depends on your contract. You may want to put language in your Purchase and Sales Contract that makes the sale contingent (dependent) on the property appraising at or above the sales price.

You will need to pay for an appraisal in that case. Costs vary. A common price in my area is $300-$400. However, this could be money well spent, because the appraisal provides you with an "out" if the appraisal shows that the home is not worth what you were willing to spend.

If this should occur, you could then withdraw from the contract and receive a refund of your deposit(s). Just something to keep in mind.

Warm regards,
Maggie Hawk, REALTOR
Watson Realty Corp.
1 vote
Miyuki Fujiw…, Agent, Coral Gables, FL
Wed Nov 17, 2010
You don't need to order appraisal if you pay cash. But it's good to know what the property is actually worth.

Miyuki
0 votes
Daniel, , Baton Rouge, LA
Wed Nov 17, 2010
nope, nada, no way

You can buy any overpriced, termite infested, cracked foundation structure you wish. Appraisals and inspections are for your protection.
0 votes
Christopher…, Agent, Tarrytown, NY
Wed Nov 17, 2010
Hi, Typically you only need an appraisal if you are applying for a mortgage or just want to get a good idea of what the property is actually worth. Remember an appraisal is an educated opinion, a home is truly only worth what you are willing to pay. I recommend checking out sold comparables in the area to get a ball park figure of what the homes sell for. The appraiser gives the bank a range to choose from anyway in which they usually go with the lesser amount.

Sincerely,

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
Legends Realty Group
914.406.9023
0 votes
Antonio Vega…, Agent, Saint Cloud, FL
Wed Nov 17, 2010
NO.
As long as you know the asking price is close to market value and you are happy with it there is no need for appraisal.
0 votes
Nice Profile, , Miami, FL
Mon Oct 4, 2010
You should always do an appraisal and a home inspection by a professional home inspection company. This way you have no surprises or you don't overpay. Besides you should buy insurance for replacement cost and not for the full price of the property. You will also get information on the actual square footage of the property and how soon should you replace the roof, etc. The more information you have about the property the better. The $300-$400 will be worth it in the long run. Besides if you are paying $200,000, $100,000, or any amount cash, the money you will be spent on the appraisal will be well worth it. So my final recommendation is, a Home inspection, an Appraisal and Home Warranty if you can ($400 a year). Visit my website for more information. http://www.forsaleagent.com
Web Reference:  http://www.forsaleagent.com
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Thu Sep 30, 2010
No you do not. Many cash buyers will have an appraisal done just for insurance purposes and/or the knowledge of the purchase you are making. It isn't a bad idea to make the purchase contingent on the appraisal to ensure you are not overpaying.

Best of luck!
0 votes
Colon Zamora, Agent, Doral, FL
Thu Sep 30, 2010
Nicholas,
Is not required, but an appraisal if for your best interest, an appraisal is not an expense is and investment because you will have a clear picture of the right price and that you are not overpaying. Also you will use for insurance purposes.
Title Commitment and your closing documents are very important issues, you need to find the right company.

Colon Zamora
Realtor
Homes 4 you, LLC
CRS, ePro, SFR, TRC
Doral Specialist
305 778 9335
colonzamora@gmail.com
0 votes
Genevieve Ra…, Agent, Punta Gorda, FL
Thu Sep 30, 2010
Nicholas,
My buyer had to have an appraisal done for Insurance purposes.
Genevieve Ramachandran
0 votes
Nadine Mauro, Agent, Lake Worth, FL
Thu Sep 30, 2010
Nicholas,

An appraisal is not required for the purchase of the house. Your insurance company, however, may ask for an appraisal before they will give you insurance on the house. I had this just happen recently with one of my buyers.

Nadine Mauro
Realty Hub, Inc.
561-414-0864
NadineMauroRE@yahoo.com
http://www.floridahouseseller.com/
0 votes
Carli Parrish, Agent, Clearwater, FL
Thu Sep 30, 2010
Hi Nicholas,

No you are not required to pay for an appraisal when purchasing with cash. However if you want to make sure you are spending your money wisely, an appraisal would be a great tool in finding out the true value.

Good Luck
Web Reference:  http://homesbycarli.com
0 votes
David Buckley, Agent, Overland Park, KS
Thu Sep 30, 2010
Nicholas,
The other answers are correct. The appraisal process is a lender requirement. Therefore, if you are paying all cash, you are not required to have one. However, if you don't mind paying for an appraisal, I would recommend that you put in your purchase contract that the purchase price is contingent upon an appraisal. That way whether you are an investor or buying your own home, you will know what you home is worth in your local market.
0 votes
Alma Kee, Agent, Tampa, FL
Thu Sep 30, 2010
Hi Nicholas,

Make sure to hire an attorney to review your Title Commitment and your closing documents. Cash buyers are targeted by short sale "flippers" that may stick you with extra costs after closing so an attorney review will more than pay for itself.

You can contact a Tampa Attorney and he can do all of the review via email. Lawrence Fuentes is highly experienced:

http://www.fklaw.net/

All my best,
Alma
Alma Rose Kee, PA
Future Home Realty
813.244.9898
0 votes
Miyuki Fujiw…, Agent, Coral Gables, FL
Thu Sep 30, 2010
you don't need to pay appraisal fee if you buying cash. just idea of appraisal price if you want ....
any question
miyukif54@gmail.com
http://www.hermangroup.net/

Miyuki
Web Reference:  http://www.hermangroup.net/
0 votes
Debra B Albe…, Agent, Port St Lucie, FL
Thu Sep 30, 2010
Nicholas,
I would not be required, however, It would be a good idea. Market values change rapidly at times and don't you want to make sure that First, your offer is a good one and Second, that you are not overpaying.

Buying property is both emotional and financial. In order to make the right decision, and know you are paying the right amount don't you think it would be worth it?

Debbie Albert, PA
Coldwell Banker Residential
Web Reference:  http://www.ronanddebbie.net
0 votes
, ,
Thu Sep 30, 2010
Only if you want to. The appraisal is required by the mortgage company if there was one. I would still pay for one to make sure you are getting a good deal unless you have done your research and fee comfortable with the price.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more