Whether you’re selling or buying a home in Georgia, you will likely be relying on an appraiser’s valuation to determine how much the property is worth. An appraisal is not the same as a listing price or a bid, but it can have a major impact on both. So what does this mean for you and how do you ensure you’re getting the best possible deal? By understanding home appraisals, how they work, and what you can expect from the process. To make it easy for you, we asked the experts all of your most common questions and will dig into them in the article below. Let’s get started. A home appraisal is simply the unbiased measure of the value of a home. Lenders typically order appraisals to confirm the value of the property and figure out what they’re willing to lend. The cost of a home appraisal in Georgia can range between $400 and $750, according to Patrick Adamson, MAI, SRA, outgoing president of the Atlanta Area Chapter of the Appraisal institute. Estimates for the national average home appraisal fee range from $313 to $500. The prices in Georgia are mostly in line with national averages, but could lean on the higher side depending on your home type, location, and timing. Joe Weathers, a single-family home expert who has sold over 300 homes in Dallas, Georgia, explains that “It can vary and has gone up over the past year or two just because there’s been an increase in the number of transactions and appraisers are slammed. So they started raising prices to prioritize their appraisals.” Let’s look at seven variables that can increase or decrease the cost of an appraisal in Georgia. Happily, home appraisal costs are not tied to the price of a home. Instead, home appraisal costs are tied to the amount of time and work they take to conduct. Larger or more complex properties can cost more to have appraised, as can rural homes. Here are some factors that can influence the cost of a home appraisal in Georgia: Urban properties tend to be smaller and have more information readily available in the local MLS, which makes them faster and thus cheaper to appraise. Rural properties tend to be larger with more features and more land whose value needs to be assessed, and possibly lacking multiple comparable properties nearby to make determining value easy. Because of the legwork required for a reasonable appraisal, rural property appraisals often cost more. Lakefront multi-family homes cost more to appraise than single-family subdivision houses. The more bedrooms and bathrooms a house has, the more time and money it takes to appraise. Multi-family homes often stray from the standard sales comparison approach for determining a home’s value, which adds to the appraisal cost. Features like a lake or a pool or a home gym add to the time and cost of appraising a home, as they interfere with the standard sales comparison approach. While an appraiser is not a home inspector with a whole toolkit of specialized inspection tools, appraisers are trained to spot visible signs of damage, such as cracks in the walls, ceilings, floors, or foundation. Unrepaired structural damage will negatively affect your appraisal and can impact the cost of your appraisal as it takes more work for the appraiser to assess the fair value of your home. Short deadlines can increase the cost of an appraisal. If you’re trying to work with a tight deadline, you can opt to pay a rush fee. If there aren’t enough qualified home appraisers in your area to serve the need for appraisals, you may have to resort to bidding higher in order to ensure your home appraisal is conducted in a time frame that works for you. According to the Appraisal Institute, FHA loans have additional requirements that can add time, so the cost of the appraisal can be higher. Weighing these factors above can help you determine if your property will be on the high or low side of Georgia’s estimated home appraisal cost range. You typically need a home appraisal any time any major financial event is happening related to a home — whether that’s a sale, a mortgage, or even refinancing the house. 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. Lenders want reassurance that the buyer isn’t over-borrowing. This is because the house typically serves as collateral for the loan if the borrower defaults on the mortgage. But the appraisal must be handled by an independent third-party professional assigned by an Appraisal Management Company (AMC) — someone with no biases in the process. Some sellers will opt to order an appraisal of their home before listing, particularly if the house has unique features that impact the value of the property. Generally, a licensed or certified appraiser will conduct an on-site visit to document the state of the home. This includes square footage, curb appeal, assessing recent upgrades, and noting the overall property condition. Expect them to hand-measure and take photos of the property. The appraiser will deduct value for any issues and will record details like whether the home has central air conditioning and how the foundation is holding up. Along with the on-site evaluation, the appraiser will also gather data about recently-sold comparable properties, called “comps.” Using all their notes, research, and observations, they’ll provide a Uniform Residential Appraisal Report, which will include their reasoning for their opinion of the home’s value. Regarding comps, Adamson explains that “If a subdivision has a recent sale, that [sold price] number could be more impactful than a leaky faucet or something minor that’s deferred maintenance. So being more aware of the surrounding properties that have sold is more helpful than small things as far as deferred maintenance.” That said, if you’re a seller, you can improve your property value by doing some renovations. Fixing up the bathrooms, kitchen, and flooring will give you the best ROI when appraisal time comes. Sellers can also present the home in the best possible light for the appraiser by staging it nicely, as you would for any possible buyers. Home appraisals aren’t supposed to be subjective, but we’re all human and can be influenced. If you’re a buyer, you may be looking for a turnkey home, but you’re also likely balancing wants and needs with what you can afford. You don’t want a home that’s been over-improved for the Georgia neighborhood or price point. You may be less impressed by updated kitchens and baths and would prefer more living space. Home appraisal values are negatively impacted by factors such as the age of the home and issues with the foundation or key systems. Homeowners can’t do much about the age of the home, but sellers can have an inspector check for structural or key system issues (and then fix them) before the home is listed for sale. Expect a lower appraisal value if the home is next to a busy street, a junkyard, or power lines or in an undesirable neighborhood. If the home is overly personalized, that could hurt or reduce the appraised value too. Being added to a FEMA flood zone map will also negatively affect a home appraisal as any potential buyer will need to purchase additional insurance, raising the cost of owning the home. Official home appraisals are almost never free and rarely cheap, but you can get a ballpark idea of what your home’s current value is by using HomeLight’s Home Value Estimator. Simply answer a few questions about your home, and our free tool will use recent sales records for other properties in your area and public data to provide a free home value estimate in under two minutes. If you’re a seller, you can also ask your real estate agent for a comparative market analysis (CMA). CMAs are typically used to price homes before listing them and are usually created using similar methods as an appraisal. Many local agents will provide sellers with a CMA for free. You will still need an official third-party appraisal if a financial transaction is involved, but the Home Value Estimator or a CMA will give you an idea of what you can expect if you’re looking to sell or refinance. Who pays for a home appraisal depends on what the appraisal is being used for. Here’s how it generally works: In most situations, a seller pre-listing appraisal isn’t necessary. However, if you inherited the home and don’t really know its value, it might be worth getting a seller pre-listing appraisal to anchor your expectations and give you the opportunity to raise the potential sales value of the property. A pre-listing appraisal can also be helpful if a seller has a unique or rural property that has very few comps. However, for the average home with plenty of comps, it’s typically not necessary to spend the money on an appraisal when a CMA can provide much of the same information. It depends on the size and number of features your home has. A walkthrough for a simple appraisal can be as fast as 30 minutes or as long as several hours for a large property with multiple features. You should expect your appraisal report anywhere from a few days to a few weeks after the walkthrough, depending on the complexity of the appraisal and your appraiser’s schedule. Weathers advises his clients to expect a roughly two-week turnaround time on a standard appraisal. If your appraiser isn’t being sourced by your lender through an AMC, you have a few options. Asking your real estate agent is always a great first choice. A top agent should already know you and your needs and be well-connected in the community, so they’ll likely be able to refer you to an established local appraiser. Another option is to find a licensed and certified appraiser by using the Appraisal Institute’s Find an Appraiser tool. If you’re not happy with those options, you can always try Googling “home appraiser Georgia.” You always have the option to submit for reconsideration with your appraiser. Just as they supplied their logic for the value they gave you, you’ll need to justify your reconsideration. Weathers advises that you “check to make sure this footage looks accurate for the current property — make sure of all the details; that they didn’t miss a bathroom or closet — and then look at what the appraiser says or what the current market conditions are.” You should also share with the appraiser comparable homes that have recently sold at or close to the appraised value you’re seeking. Home appraisals are required for most real estate financial transactions, so whether you’re planning to sell or to buy, it’s smart to understand the process, especially if you’re the one paying for it. A great real estate agent will be able to help you navigate the home appraisal process — whether you’re looking for an experienced appraiser to conduct an appraisal as a seller or need to understand what the appraisal number means for you as a buyer. HomeLight can connect you with the right real estate agent for you, who can guide you through not just the home appraisal but every step of your real estate journey.What is a home appraisal?
How much does a home appraisal cost in Georgia?
What factors influence the cost of a home appraisal in Georgia?
Urban vs. rural
Property type
Property features
Extensive damage
Speed
Shortage of qualified appraisers
Loan type
Why is a home appraisal needed?
How does a home appraisal work?
What increases the appraised value of a home in Georgia?
What negatively affects a home appraisal in Georgia?
Can a current homeowner get a free home appraisal?
Who pays for a home appraisal?
Purpose of the appraisal
Who generally pays for the appraisal
Pre-listing determination of value
Owner who is considering selling
Home purchase
Buyer/borrower
Refinance
Homeowner/borrower
Settling an estate
Family or estate assets
Is a seller pre-listing appraisal worth it in Georgia?
How long does a home appraisal take?
How do you find an appraiser in Georgia?
What if you’re not happy with your home’s appraised value?
Conclusion: Ask your Georgia agent about appraisals
