As of 2015, there was a total of 5,250,000 existing homes were sold in the United States. One may think that the best residential deals are found within the ‘concrete jungle.’ But contrary to popular belief, the suburban real estate is not dying. People living in remote residential communities are looking at a pleasant prospect when it comes to the idea of selling their properties.
In fact, according to the National Association of Realtors, a renowned firm called John Burns Consulting foresees 80% of the residential growth to occur in suburban communities for the next 10 years. The term ‘surban’ captures the vision of the real estate industry to “take civilization much closer to home.” In essence, commercial facilities and services are putting up buildings right in the pristine and verdant suburban American neighborhoods.
Average Assessor Cost
Considering the good news mentioned earlier, it pays for prospective real estate owner sellers to invest on ‘increasing the value of their property.’ One of the smartest ways to get started is to hire an appraiser to assess the house’s retail value.
The website called Bank Rate estimates the national average home appraisal cost to be anywhere between $450 and $500. However, it is important to take note that the actual cost to get a house appraised may increase twofold if the property that is about to be put up for sale has a total perimeter size of that exceeds 5,000 square feet.
Bigger homes compound the complexity of the interior and overall architectural layout. What usually takes about 30 minutes to completely assess an average American residence will take an hour or more for bigger properties. Hence, huge homes may incur a total of $1,400 to $1,500.
What Exactly Am I Paying For?
In exchange for the cost to get a house appraised, homeowners are basically buying vital information that often results in a better financial deal. The objective assessment of a house appraiser grounds owner sellers to put a ‘realistic’ figure to advertise to potential buyers. Whether or not the home seller is pleased with the assessed retail value, the appraiser’s judgment serves as an accurate basis that sets the common ground for the buyer and seller.
It is natural for both the home seller and potential buyer to assume that the appraiser serves either of their interests, especially considering the undeniable advantages of their service. However, it is important to take note that home appraisers only serve the interest of lenders. Their assessment is most valuable to mortgage bankers who issue exact figure they would loan for buyers who intend to cover the cost of a particular real estate.
Finding The Good Appraiser
In theory, the judgment of the appraiser is the gold standard. But in reality, not all real estate appraisers have the knowledge and experience to project the most accurate market value. The average home appraisal cost of $450 to $500 is only a worthy investment if the appraiser has a very good career standing.
According to the website called Dough Roller, the lowered bar for quality service in terms of housing appraisal has a lot to do with the establishment of the Appraisal Management Companies (AMC). As a third party organization that helps lenders outsource low-cost appraisers, their lack of familiarity with certain local real estate situation causes them to generate a relatively inaccurate assessment. It is best for buyers and/or sellers to do their research regarding the appraiser’s AMC customer reviews.
Home Inspector & Cost
Normally, people would consider home appraisers and home inspectors to be exchangeable terms. However, both professionals are not exactly the same. A home inspector assesses the structural integrity and stability of the home, particularly with its interiors and the foundation. A home appraiser, on the other hand, assesses the financial integrity and stability of the home.
Curiously, a hiring a home inspector is another key investment that ultimately increases the potential value of the property. Since home inspectors are well-versed in the overall structural quality of the house, their engineering reports serve as a basis on which particular infrastructure or utility needs renovations.
On top of the average home appraisal cost, meticulous real estate sellers are looking at an additional $300 cost to acquire an engineering report from a licensed inspector, plus approximately $42.28 per hour of their service. It is important to take note that structural engineers are a more cost-efficient alternative than the independent private contractors.
Various Renovations & Costs
Considering that the cost to get a house appraised did not yield a very desirable assessment, it is important for selling homeowners to find a way to increase the market value of their home. Apart from ensuring the overall structural stability and safety with the help of a home inspector, renovating the property multiplies the potential bucks, it can generate during the next round of home appraisal.
In terms of making the necessary changes in the property, it is important to take note that this investment does not have to entail exorbitant costs. The website called HGTV classified the average cost of renovation in three spending levels:
The most basic investment most people tend to overlook is the service of a professional real estate adviser. For an average fee of less than $100, expert designers can pay a visit to the residence and provide helpful tips on how to beautify the interiors. Another investment under this bracket is DIY repainting. For $25, one can give home interiors an apparent facelift.
$100 to $400
One of the improvements homeowners can spend for medium cost renovations entail planting trees and building a low-maintenance green landscape. As for the interiors, the replacement of furniture and flooring can increase the ventilation and spatial quality.
On top of accentuating the greenery outdoors, the overall interiors must be sporting fresh, energy-efficient and environmentally friendly fixtures. Lastly, hiring a cleaning service for less than $400 can make a relatively old house look like a hotel.
$400 to $750
The most expensive outlay one can spend is a complete overhaul of the kitchen and the bathroom design. These are the foremost areas in the house that bring the highest return on investment when it comes to renovations.