On average, a home appraisal in New York can cost from $325 to $425. When buying a home, getting a mortgage, or refinancing, home appraisals can make or break the deal.
One study by NAR found that 74% of the transactions fell through as a result of the appraised value. That’s why, getting a home appraised in New York is key to buying a house.
How much is a home appraisal in New York?
How Does a Home Appraisal Work in New York?
Typically, a home appraiser will visit your property after the house goes under contract. Mortgage lenders hire house appraisers to determine whether the loan amount is worth the property’s value.
Real estate appraisers look at multiple factors like your location, home’s age, condition, area, etc. They will also look at real estate comps, which are properties sold recently in the area.
Buyers and sellers can also hire a New York home appraiser to calculate the home’s fair market value. The parties and their agents can be present while the home is being appraised.
» How to Prepare Your Home For an Appraisal: Check out our ultimate guide
How Much Does a Home Appraisal Cost in New York?
Home appraisal fees in New York can range between $325 and $425, with a national average of $350. However, this price changes drastically based on your location and type of property.
According to HomeAdvisor, the average cost of a home appraisal for a single-family home in New York is $300 to $400. But for bigger properties like multifamily homes, it can range between $600 to $1,500.
New York Home Appraisal Cost By Type
In recent years, traditional ways of appraisal have evolved, particularly in light of the pandemic. Here are some kinds of New York home appraisal services you get:
- Traditional Appraisal – $350 to $600: It provides the most accurate appraised value of a home. The appraiser personally visits your house to assess it visually. You get an appraisal report after the appraiser has gone through comps in your area.
- Desktop Appraisal – $75 to $200: The appraiser only looks at publically available data related to your property. Although this is a cheaper alternative, most lenders do not accept its evaluation.
- Drive-By Appraisal – $100 to $150: This service involves a visual assessment of your property, but the appraiser does not enter the house. However, like desktop appraisals, mortgage lenders do not accept this appraisal as it’s not comprehensive.
- Hybrid Appraisal – $250 to $375: This process involves two appraisers – one conducts a visual assessment and the other analyzes the data. Some lenders have started to accept such appraisals.
Factors That Affect New York Home Appraisal Costs
Before you budget your expenses for a home appraisal, understand these factors that determine its costs:
- Property’s Size: Appraisal costs change significantly if a property is large, or spreading across multiple acres of land.
- Type of Loan: Government-backed loans require a thorough appraisal process to ensure that the property meets some safety and structural requirements. Property appraisal costs in New York for FHA loans or VA loans can cost about $400 to $900.
- Location: Home appraisers in some states offer an appraisal at lower rates than others. This difference can be hundreds of dollars.
- Property’s Condition: The home appraiser documents any visible defects in the home appraisal report. As this takes extra time and effort for the appraiser, they charge more for it.
- Time of the Year: Some areas may become inaccessible due to seasonal conditions like flooding and increase the cost for the appraisal.
- Special Features: Amenities like swimming pool, deck, koi pond, etc. require additional assessment, hence it costs extra.
- Property Type: Compared to New York real estate appraisal costs for single-family homes or condos, multifamily dwellings are pricier.
» What Hurts a Home Appraisal: 7 things you must avoid
Why Do You Need a Home Appraisal in New York?
Here are some reasons why you should get a home appraised before buying a house:
- Determine Property Value: A home appraiser objectively estimates the property’s fair market value.
- Secure a Mortgage: Lenders require an appraisal to confirm that the property’s value is sufficient collateral. In some cases, buyers may need to make a larger down payment if the appraisal exceeds the purchase price.
- Assess Property Tax: Local governments use appraisals to assess property taxes. Accurate appraisals can help homeowners from overpaying real estate taxes.
- Check Insurance Coverage: Many home insurance policies adhere to the 80% rule. It stipulates that homeowners should insure their property for at least 80% of its replacement cost. Appraisals assist homeowners in complying with this rule and avoiding penalties for underinsurance.
- Get HELOC Or Refinance: Homeowners who want to get a home equity loan or refinance an existing mortgage need a home appraisal to determine the property’s value.
» Home Appraisal Checklist: Look at our home appraisal checklist page to understand what’s included in the home appraisal process.
Who Pays for Appraisal in New York?
Generally, a buyer pays the home appraisal fees before buying a house. These fees are considered a part of the buyer’s closing costs in New York. Borrowers pay the house appraisal fees in New York where a mortgage is involved.
A seller who gets an appraisal before listing the property pays the appraisal costs.
If you are a borrower refinancing your loan to reduce your interest rate, you’ll pay the cost of a house appraisal.
» Refinance Appraisal Checklist: Prepare your house for a home appraisal
How To Find a Home Appraiser in New York?
Here are a few things you should consider when looking for a New York home appraiser:
- Check Certification: Make sure they are licensed or certified.
- Look for Reviews: Look at online reviews to ensure they are unbiased and won’t favor any party.
- Check Local BBB: Check with the local BBB to determine how trustworthy the private appraiser is.
- Get a Specialized Appraiser: If you are applying for a government-backed loan, you’ll need an appraiser who specializes in these assessments.
» Looking for a home appraiser? Check out New York home appraisers near you.
Home appraisal costs in New York can range from $325 to $425. New York house appraisal fees vary based on factors like location, type of house, condition of the property, and the type of loan you’re getting. Home appraisals cannot be skipped, especially when you’re getting a mortgage.
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