Why Paying More For A Home Appraisal Makes Sense
Would you look for the cheapest attorney? How about the cheapest Financial Advisor? Probably not - because you know experience and accuracy count when you’ve got a lot on the line. So why would you consider hiring the lowest cost appraisal when it comes to the value of one of your biggest investments? Here’s why paying more for an appraisal might make sense.
- An accurate appraisal takes time, which is reflected in a higher cost. A quick half hour look for a low cost will not give you an accurate appraisal.
- Divorce Situation? If you argue over price, the one with the more thorough appraisal will win. The more time the appraiser spends on your appraisal, the more it costs, but the more accurate it is likely to be.
- Prelisting Appraisal? There will be another appraisal during the loan process - if yours was wrong, and it was too high, you could risk the loan falling through.
- Estate appraisal? The IRS requires a competent appraiser. How do they tell? They audit appraisal records, and if the appraisal isn't thorough enough, or doesn't show enough evidence for the value listed, you could have to redo it.
- The lowest cost appraisal might give you an inaccurate value. When you sell in two years, if you overpaid now because of an inaccurate appraisal, you might not be able to recoup that cost.
- This is likely your biggest investment, aside from your children. It needs a quality appraisal, not cheap and fast.
- Appraisals get randomly reviewed - if it doesn't stand up, you could have to redo it - and that could postpone the close of your home sale.
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