What Is the Average Cost of a Home Appraisal in California?
If you are buying or selling a home in California or considering refinancing your Golden State home, knowing what affects the average cost of a home appraisal will provide insights to help you make the best financial decisions about the property.
In this post, we’ll examine the average cost of a home appraisal in California, what factors influence the cost, and answer all your questions related to the appraisal process.
Why is a home appraisal needed?
Appraisals are typically needed when applying for a mortgage or refinancing a home loan.
According to the Appraisal Institute, the nation’s largest professional association of real estate appraisers, data from the appraisal report is often used by financial institutions to confirm that the loan-to-value (LTV) ratio meets their underwriting guidelines.
Matthew Welch, a top Long Beach agent who specializes in relocations and helping first-time California buyers, says this process starts once escrow is opened. This is when the paperwork is sent to the buyer’s lender, who orders the appraisal through an appraisal management company (AMC). AMCs provide third-party, professional appraisal contractors who are not affiliated with the lender or borrower.
“It’s done very objectively, so there’s no contact from the real estate agent themselves, either the buyer’s agent or the seller’s agent, as to who is going to be doing that appraisal,” says Welch.
Other reasons most appraisals are ordered include matters related to inherited properties and sellers who want a pre-listing appraisal.
