Homeowners in Utah should expect to pay around $333 for a professional home appraisal this year. This is the national average rate, but it’s possible to spend from $250 to $450.
Several factors will affect the actual cost of your property, such as your location, the size and layout of your house, its age, and if there are any renovations or upgrades. Take note that appraisals are different from home inspections. In Orem and Provo, homeowners should consider both amid growing demand for properties among millennial buyers.
Differences Between Appraisals and Inspections
While appraisals and inspections are equally important, the former usually focuses on the value of a house. Homeowners typically do this to provide a legitimate claim on their asking price. Financial institutions such as banks also hire an appraiser to avoid lending money worth more than the cost of the property.
On the other hand, buyers are the usual ones who hire inspectors to find out if there are any problems with the property before purchase. But sellers might also spend on home inspections before selling their house to comply with specific laws.
Why An Appraisal Is Necessary
The one who pays for appraisal service depends on the negotiation between the buyer and seller. Existing home sellers who need to sell their house right away can be forced to foot the bill just to hasten the process of closing a deal.
A home appraisal isn’t just necessary before putting the property for sale. It also determines the exact amount of real estate taxes. Otherwise, you could end up paying more or less than the right amount. The same applies when applying for a remortgage to get a lower interest rate, or when you plan to remodel the property instead of selling it. The lending company will ask for an appraisal report to determine the equity attached to the house.
Popular Cities to Buy Homes for Millennials
The rising demand for properties in certain parts of Utah will inadvertently increase the need for home inspections. In Orem, those who are in their 20s comprise the most significant share of homebuyers, particularly in the 84058 zip code. More than 40% of buyers consist of people below 30 years old because of the low price of homes in the area.
The opposite has been happening in Provo, where young Americans are buying homes because of the strong job market in the city. Average home prices can be unaffordable at $380,000, but people have more money to pay because of a higher-paying job. More than 30% of mortgage loan applications in the city originated from people between 20 and 29 years old.
In the end, you have to remember to negotiate the terms of a home appraisal or inspection when buying or selling a house. If you decide to pay for the service, you need to pick a contractor who specializes in different kinds of services. For home inspections, these include an energy audit and testing for asbestos, lead, meth, mold, and radon.