Survey and Appraisals
Survey
When a mortgage loan is involved in a purchase, your lender will usually require a survey of the property. A survey is simply a one-dimensional drawing as if you were looking down onto the property from above. A survey provides:
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Lot dimensions
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Easements
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The position of the home on the property, where applicable
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Location of out buildings, fences, pools, etc.
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Any encroachments
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Flood Zone
It is strongly recommended that a survey be obtained on all purchases of real estate, whether or not one is required by the lender. A survey can help eliminate many boundary disputes and ensures that you are purchasing the correct property.
Even in cash sales purchasers are encouraged to obtain a current survey, simply to protect themselves. Costs vary according to the property, but a typical residential survey is in the $200 - $300 range
Appraisals
An appraisal is ordered on almost all real estate sales covered by a mortgage. The mortgage company orders an appraisal upon initial loan application.
The cost of an appraisal is normally borne by the purchaser and is customarily paid for at the time you make loan application. The cost is usually around $300. Appraisals normally take one to two weeks to complete. During very active market periods, the time it takes for an appraisal can vary significantly. If an appraisal is not required, should you get one anyway? An appraisal is one person's opinion of the value of a particular property on a specific date. An appraisal gives some assurance to the purchaser that the price they are paying represents a fair market value and appraisals are always recommended.