Appraisal

• An appraisal is a certified professionals opinion of value of a subject property. This opinion is formulated by sales data in a small radius of the property in question.
  
  

FHA Guidelines

• FHA appraisals are an opinion of value as well as a mini-inspection report done on the property. This inspection looks for defects with electricity, plumbing and construction.
  
  

Fees

• It is the responsibility of the home buyer to pay for the FHA appraisal. This fee will typically range from $350 to $500 dependent upon the size of the property.
  
  

Time Frame

• The time it takes the appraiser to collect the data they need on a property only takes a few hours. The information being reported back to the consumer and the bank can take a few days or as long as a week.
  
  

Considerations

• FHA appraisals can sometimes come in below the sales price of a property. Should this happen, a consumer should discuss options with her loan officer and real estate professional.
  
  

Misconceptions

• Many consumers believe that the appraisal fee is refundable should a transaction not come to close. This is not correct; appraisal fees are paid outside of closing and are non-refundable.