How Much Does a Home Appraisal Cost in Arizona?

In addition, competitive pricing can play a role. Different appraisers charge various fees for their work.

Considering the factors above can help you determine whether your property will be on the high or low side of Arizona’s estimated home appraisal cost range.

Why is a home appraisal needed?

Home appraisals are typically needed when applying for a mortgage or refinancing an existing home loan. 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.

Because the house typically serves as collateral for the loan, lenders want reassurance that the buyer isn’t over-borrowing.

Some sellers will opt to order an appraisal of their home before listing, particularly if the house has unique features that affect its property.

How does a home appraisal work?

Appraisers traditionally start with a walkthrough inspection of the property so they know what they’re valuing. A typical inspection involves the following:

• Taking measurements to confirm the exact square footage of the home
• Looking at the overall condition and quality of the construction
• Checking for needed repairs
• Taking note of any upgrades or improvements the owner has made.

They then begin researching comparable homes (comps) that are currently listed, pending sale, or recently sold in the surrounding area to determine the current market rate for the property in question. A qualifying comp is considered a home and property of very similar size and physical features. For those that were sold, appraisers try to prioritize the most recent transactions.

“An ideal comp would be the house next door that has the exact same physical attributes that sold three days ago,” Logan says.

Finding good comps is not always easy, so appraisers are trained to make value adjustments based on the differences between the comps available and how much the market has shifted since each of the comps sold. For instance, if a comp has one more bathroom than your home, then the value of that additional bathroom might be deducted from your home’s comparable value. Likewise, if a comp sold three months ago and the housing market has noticeably gone up or down since then, the appraiser will account for that change when calculating a current value.

What increases the appraisal value of a home in Arizona?

In the eyes of an appraiser, appraising a home in Arizona is, in many ways, the same as appraising a home in any other state.

“What we are supposed to be appraising is the definition of market value,” Logan says. “When we look at that, the most important thing is what buyers want for a property.”

From his experience, Arizona buyers tend to care the most about the following when shopping around:

• The size of the home (the bigger the better)
• The size of the lot (again, larger is preferred)
• Updates and renovations
• Homes with a view

Dave Zajdzinski, an Arizona agent who works with over 70% more single-family homes than the average agent in the Phoenix area, says properties with a view tend to be especially desirable in Arizona.

“I think our mountains give us a little unique advantage, whereas just being on the east side of a street can be totally different than being on the west side of the street,” Zajdzinski says. “If you buy the home on this side, your backyard is going to get a view of the city, but if you buy a home on the other side of the street, you’re going to get a view of those homes that have a view. That’s a huge advantage, and the premiums are significant.”

What negatively affects a home appraisal in Arizona?

Like most other markets, a home appraisal in Arizona can be negatively affected by any of the following:

“It all is predicated on what’s going on in your neighborhood,” Logan says. “If the neighborhood has all been completely remodeled, then that becomes the normal accepted standard for that neighborhood. So if a property hasn’t been updated and remodeled, it’s going to significantly lag the pricing of those properties that have been remodeled.”

Can a current homeowner get a free home appraisal?

While there’s no such thing as a free certified home appraisal, there are free online tools, such as HomeLight’s Home Value Estimator (HVE), that can quickly give you a ballpark idea of what your home might be worth.

Simply answer a few questions about your home, and our HVE will use recent sales records for other properties in your area and public data to provide a free home value estimate in less than two minutes. This type of estimate doesn’t qualify as a replacement for an official appraisal required by lenders, but it may inform your decision when looking to remodel or if you’re just curious about how much your home has potentially changed in value.

If you’re a seller, you can also ask your real estate agent for a comparative market analysis (CMA). CMAs typically are used to price homes before listing them and usually are created using similar methods to an appraisal. Many local agents will provide sellers with a free CMA.

Who pays for a home appraisal?

Who pays for a home appraisal depends on the reason for the valuation. Here’s a simple layout of who typically covers the costs:

Purpose of the appraisal	Who generally pays for the appraisal
Refinance	Homeowner/ borrower
Home purchase	Buyer/ borrower
Pre-listing determination of value	Owner who is planning to sell
Settling an estate	Family or estate assets

When refinancing or applying for a mortgage, neither the borrower nor the chosen lender decides who the appraiser is. Instead, the lender works with an appraisal management company (AMC) to assign an independent, third-party appraiser to the case. This ensures an unbiased opinion for both parties. Though the lender arranges the appraisal, the borrower pays for the service.

How long does a home appraisal take?

Depending on the size and complexity of the property, a home appraisal walkthrough inspection can take anywhere between 15 minutes and several hours, Logan says. And it will be about a week before you receive the full report. “From the time an appraiser receives the assignment, it takes two to five days to complete the appraisal assignment,” Logan says.

How do you find an appraiser in Arizona?

If you’re applying for a mortgage or refinancing, then the lender will arrange to have a third-party, independent appraiser assigned to the case.

But if you’re looking to hire an appraiser for other reasons, then the process is quite similar to finding a real estate agent. That is:

• Run a search online for appraisers in your area and see who is well-reviewed.
• Ask some of your friends or neighbors for referrals.
• Turn to non-profit organizations like the Coalition of Arizona Appraisers.
• Ask your real estate agent about Arizona appraisers they’ve worked with.

Once you’ve located a few promising candidates, contact each one and ask them a few simple questions to gauge if they’re right for the job, such as:

1. Are you familiar with the area?

Having someone who knows your area well will improve the accuracy of the appraisal. They’ll have a good idea of what sort of homes are most appealing to buyers looking to move into the area, what sort of home features are most popular, and how desirable the location is.

2. Are you licensed or certified?

There are three levels of real property appraisal classification in Arizona. The simplest classification is Licensed Residential Appraiser. This requires the least amount of education and the license holder is restricted from appraising properties over specific transaction values. The next highest classification is Certified Residential Appraiser. These appraisers can handle any residential job regardless of the transaction value. And then there are Certified General Appraisers, who can appraise all types of real property.

3. How long have you been appraising?

While it shouldn’t be the primary determining factor on whether to hire someone, experience does matter in this field of work. The longer someone has been appraising, the more likely it is they have valued properties very similar to yours in your market.

4. How much do you charge?

Many appraisers may be hesitant to give you an exact figure, but ask if they can provide an estimate on what the job might cost based on the size of your property and the square footage of your home.

Is a seller pre-listing appraisal worth it in Arizona?

In most cases, a seller pre-listing appraisal is not worth it, Zajdzinski says.

“I would not recommend it,” he says. “I would save that money for a home inspection and repairs.”

The reason is that one of the chief responsibilities of real estate agents is to determine the home’s value using a CMA. Although lenders won’t accept a CMA in place of an official third-party appraisal, many professionals consider a well-researched CMA to be just as accurate when determining a home’s value.

“I think the top performing Realtors® appraise properties better than appraisers,” Zajdzinski says. “We’re in the market more and we’re on the negotiation side of it, so we really get to see current market conditions.”

The only times a pre-listing appraisal might be worth it is when your real estate agent is either having difficulty valuing your property because of how unique it is for the area you live in or if you don’t entirely trust the results of your agent’s CMA, Zajdzinski says.

If the seller and listing Realtor® are so far off and can’t come to terms on value, but they like each other and want to work together, then order an appraisal.

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  Dave Zajdzinski Real Estate Agent

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  Dave Zajdzinski Real Estate Agent at The Dave Z Home Team brokered by eXp Realty

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  • Years of Experience 19
  • Transactions 673
  • Average Price Point $355k
  • Single Family Homes 526

Conclusion: Ask your Arizona agent about appraisals

A professional home appraisal isn’t always necessary for a real estate transaction, but it’s usually considered the most accurate method available for pricing a home.

When determining the cost of an appraisal and the time it will take to complete, remember that every appraiser and home is different.

A skilled real estate agent can help answer your questions and make sure you’re doing what’s best for your particular situation. HomeLight can connect you with top-performing agents in Arizona through our free Agent Match platform. The free tool analyzes more than 27 million transactions and thousands of reviews and takes just two minutes to match you up with top agents in your area.

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