During the home buying process after your offer has been accepted, the next step is to apply for a formal mortgage. A part of that includes an appraisal process where your lender will order a home appraisal. Typically during this time the borrowers are required to pay for the appraisal. The cost will be on the closing statement (HUD-1) as a closing cost. This appraisal is to assess the fair market value of the home from the eyes of a trained professional to make sure the home’s value supports the purchase price.
The appraisal is required to get a mortgage approved. Appraisers calculate by finding the comparable properties in the area that have recently sold with similarity to size and location to the home you are buying, this is the most important factor. They also include the general condition and age of the home, remarkable features, views, major structural improvements, amenities, and the numbers of bedrooms and bathrooms.