People often complain about the cost of home appraisals. Invariably, they say something like, “I could buy groceries for a month”, or “a piece of furniture for that amount”, or “that’s half my mortgage payment”.
So why do people do it? Why do they buy home appraisals, from state licensed and certified appraisers, if the money is sorely needed elsewhere?
Maybe people are unintelligent,and could be ramping up on the consumer spending, instead of buying a bland URAR, USPAP-compliant, report about one’s home?
The home, as an asset, is far under- managed by most homeowners. Homeownership gets you a seat, in a highly-securitized national investment, with great terms. You get to own for as little as 5% down, great leverage, an asset that generally appreciates over time, is a tax write-off, that you can improve, and you get to live in! Shelter is not free, if you didn’t own, you would have to rent. And you cannot get ahead, financially, as a tenant.
So, an appraisal, at under $1000, is an opportunity to normally get something much bigger. To get out of renting(buying a home), to borrow against the home, at extremely low rates, for important life growth needs(education, business investment, and family changes).
Appraisals are cheap. In the US, the abatement price of a home is in the $300,000s. So the cost of an appraisal averages less than 1/4 of 1%, of the home value. Nationwide, in 2020, home values went up 10 to 40 times that much. Again, get that appraiser’s analysis, and use that information to financially grow.
Appraisals are an inexpensive part of benefitting from your families’ financial fortress, the American home. Use them to grow and win.