A home appraisal typically costs around $800 in the Peace Garden State in 2024. That’s a lot. You may even be tempted to skip this step altogether. But did you know, a whopping 74% of loan denials stem from issues revealed during the appraisal process?
If that didn’t stop you in your tracks, this definitely will: 1 in 10 applicants are denied a mortgage because of a low appraised value.
Skipping out on the appraisal may save you $800, but it will cost you your dream of owning a home. Don’t risk it!
How Much Does a Home Appraisal Cost in North Dakota?
The average home appraisal cost in Peace Garden State is $800. The price of an appraisal can vary based on property types:
- Single-Family Homes: $800
- Individual Condominiums: $800
- Manufactured Homes: $850
- Multi-Family Homes: $975
What Are the Types of Home Appraisal?
Here are some kinds of appraisal services you can get in North Dakota:
- Traditional Appraisal ($350 to $600): The appraiser physically visits your home to assess it. They evaluate the condition of your house and review real estate comps to prepare an appraisal report.
- Desktop Appraisal ($75 to $200): It is not an in-person assessment. The appraiser uses tax records and information listed on the MLS to evaluate the property. However, most mortgage lenders in North Dakota don’t accept this evaluation.
- Drive-By Appraisal ($100 to $150): Here, the appraiser drives by and evaluates the property. The appraisal report is prepared based on the exterior of the house. Thus, mortgage lenders do not accept this appraisal either.
- Hybrid Appraisal ($250 to $375): In this process, two house appraisers are involved, one does the assessment and the other analyzes the comps. Most lenders don’t accept this appraisal because of the third-party contractor. Lenders may accept the evaluation if they hire a third-party contractor.
5 Factors That Affect North Dakota Home Appraisal Costs
Here are a few factors that can hurt a home appraisal:
| Factors | Description | |
| 1. | Property Type and Size | On average, a single-family home appraisal costs around $800 while a multi-family home costs around $975. The appraiser can charge higher fees for larger homes. |
| 2. | Type of Loan | Property appraisals for government-backed loans like FHA or VA range from $400 to $900 in North Dakota. They require a thorough home appraisal process to meet safety and structural requirements. |
| 3. | Property’s Condition | The appraiser documents any visible defects in the home appraisal report. This process requires extra time and effort, and you might have to pay more. |
| 4. | Time of the Year | Some locations may become inaccessible due to seasonal conditions like flooding. This may impact the real estate appraisal cost in case your home falls under a flood zone area in Peace Garden State. |
| 5. | Special Features | Amenities like swimming pool, deck, or koi pond require extra assessment, incurring additional costs. |
Can You Get a Home Appraisal Done for Free in ND?
No! A free home appraisal, in reality, is a myth. It usually costs around $350 to $650.
While appraisals aren’t free, there are alternative options you can consider to reduce your costs, which include:
- Online Estimators: You can get an approximate value of your home with the free how much is your house worth estimator. This value is based on algorithms and public data.
- Comparative Market Analysis: A real estate agent can compare your desired property to similar recent sales with a more informed estimate.
Remember, these options provide approximate values. And a CMA is still not a substitute for a professional appraisal.
Who Pays for the Home Appraisal in North Dakota?
A buyer pays the home appraisal fee and it is included in the buyer’s closing costs in North Dakota. On the other hand, the seller pays for it when they get an appraisal done before listing the property. In case of a refinance, the homeowner pays the appraisal cost.
» Refinance Appraisal Checklist: 7 tips to get a high appraisal for a refinance.
Why Do You Need a Home Appraisal in North Dakota?
Here are some reasons why you should get a home appraised before buying a house in North Dakota:
- Loan Approval: To secure a mortgage, you will require a home appraisal in Peace Garden State. The appraisal report provides an unbiased estimate of the property’s value. This helps lenders approve the mortgage.
- Insurance Coverage: Many home insurance policies follow the 80% rule. According to the rule, the homeowner should insure the property for at least 80% of its replacement cost. Appraisals help homeowners comply with this rule and avoid penalties for underinsurance.
- Buyer Protection: A home appraisal is an objective assessment of the property. In a competitive market, an appraisal ensures that buyers don’t overpay for a property.
- Property Tax Appeal: In cases where you believe your property taxes are high, a home appraisal can be proof for a property tax appeal.
What Should You Look for in a Home Appraiser in North Dakota?
Here are a three things you should look for when hiring a North Dakota home appraiser:
- Check Certification: Make sure they are licensed or certified.
- Look for Reviews: Look at online reviews to ensure they are unbiased and won’t favor any party.
- Check Local BBB: Check the local Better Business Bureau page to determine how trustworthy the appraiser is.
» Looking for a Home Appraiser? Check out North Dakota home appraisers near you.
Can You Skip the Home Appraisal Process?
You can skip a home appraisal for a home that sells from $250,000 to $400,000. The NCUA, FDIC, and OCC have raised the no-appraisal limit which was previously set at $250,000. This potentially impacts 72% of mortgage transactions.
However, mainstream mortgage lenders still require an appraisal. This includes homes under $400,000. Hence, automatic exemptions cannot be guaranteed. However, if you don’t get an appraisal, you may have to bear the consequences such as:
- Financial Obstacles: You can’t get a loan if the value doesn’t match the price.
- Overpayment / Underselling: Both buyers and sellers can be at risk without an appraisal.
- Negotiation Challenges: It can be difficult to get a fair price without an objective value.
- Delays and Deal Failures: Appraisal mismatch later can derail the entire process.
» How to Prepare Your Home for an Appraisal: Here’s how you can highlight your home’s strengths for a positive appraisal.
Bottom Line
The cost of a home appraisal in North Dakota can go up to $800. In the Peace Garden State’s house appraisal cost varies based on location, loan, property type, and condition. Besides this, you can’t skip a house appraisal especially when getting a mortgage.
Also, the appraisal can get rejected in case the property doesn’t match the appraised value. However, you can apply for a new loan to buy your house. Houzeo offers a variety of tools and resources for home buyers. You can seamlessly browse through thousands of properties and find your dream home with Houzeo.
Looking for a New Home? Houzeo Can Help!
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of North Dakota homes for sale on Houzeo.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Frequently Asked Questions
What is home appraisal cost for refinance in North Dakota?
The cost of a home appraisal for refinancing in North Dakota is between $350 and $650 on average, depending on the size, location, and loan type.
Should I skip a home appraisal in North Dakota?
No, you can't skip a home appraisal in North Dakota if you're getting a mortgage on your house. But if you are buying a house with cash, you can skip a home appraisal.
Why is my appraisal fee so high?
If you are appraising a huge property or opting for a government backed mortgage, your average appraisal fees can be higher. Home appraisal fees depend on multiple factors like the property's size, property type, the type of loan you're getting, etc.
What is a home appraisal?
A home appraisal is a complete assessment of a property to determine its value. An unbiased home appraiser examines the property according to the lender's requirements and prepare a home appraisal report.
Does appraisal have to match purchase price or loan amount?
The appraisal does not have to match the loan amount exactly. However, it is a crucial factor considered by lenders to determine the loan-to-value ratio and assess the risk associated with the loan.
» Appraised Amount vs. Loan Amount: Understand the difference.
