Practical Tips...

Tips on Hiring a Company for House Appraisal

There are many things to consider in order to hire the right company for house appraisal for your specific appraisal needs. We highly recommend the use of a state licensed house appraisal company, because most states appraiser licensing boards only have jurisdiction over state licensed appraisers. Additionally, state licensed appraisers are required to meet federally mandated requirements including appraisal courses, continuing education, experience and a test.

3 things to consider when hiring a house appraisal company:

• Is the appraiser knowledgeable in the area and property for which you hiring them. This is especially important for atypical properties or difficult appraisals where prior knowledge of the neighborhood will be very useful.
  
• Does the company doing your house appraisal have the most appropriate data sources for the area and property type to be appraised? Some appraisers choose not pay for the best data sources to save money, which can adversely affect the appraisal report.
• Does the house appraisal company provide professional service with reasonable appraisal fees and turnaround times? Residential fees can vary greatly depending on the region, property and time estimated to complete the appraisal report.  The more complex the house appraisal report, the higher the fees.  While the national average for a standard residential property appraisal fee is around $350, fees do vary by region from approximately $250-$500 for standard properties.  Complex residential appraisal reports can exceed $1,000.  House appraisal reports for FHA loans are not considered standard and tend to have higher fees due to the extra amount of work and time it takes to complete the report versus a report for a conventional loan. 
  
  Commercial appraisal fees can vary greatly depending on the property type and the report type. Commercial appraisal fees of $1,000 to $5,000 are common nationwide although they can go much higher for complex appraisal reports.

Turnaround times for residential house appraisal reports are typically a few days to 2 weeks in stable times. Commercial appraisal turnaround times can vary from 1-4 weeks for standard properties in stable times.

**Please consult with your local house appraisal professional for actual quotes.  Fees are set by each company depending on the property to be appraised, typically with consideration to the time it will take to complete the assignment.