How Much is an Appraisal? Complete Cost Guide 2025

Home appraisals are a crucial part of the mortgage process, but many buyers are surprised by the cost. Understanding appraisal fees helps you budget properly and avoid unexpected expenses during your home purchase or refinance.

Average Appraisal Costs by Property Type

Factors That Affect Appraisal Costs

1. Property Size and Complexity

Larger homes with more square footage, bedrooms, and bathrooms take longer to appraise, resulting in higher fees. Unique architectural features, custom upgrades, or unusual layouts also increase costs.

2. Location and Market

Urban areas with many comparable sales typically cost less than rural properties where appraisers must travel farther and work harder to find suitable comparables.

3. Loan Type Requirements

• Conventional loans: Standard appraisal requirements
• FHA loans: More stringent property condition requirements
• VA loans: Additional safety and habitability standards
• USDA loans: Rural property considerations

4. Rush Orders

If you need an appraisal completed quickly (within 24-48 hours), expect to pay a rush fee of $100-$300 on top of the standard cost.

Regional Cost Differences

Appraisal costs vary significantly by region:

• High-cost areas (NYC, SF, LA): $500-$800+ for standard homes
• Major metropolitan areas: $400-$600 typical range
• Suburban areas: $350-$500 average costs
• Rural areas: $400-$700 (higher due to travel time)

Who Pays for the Appraisal?

In most cases, the borrower pays for the appraisal. This fee is typically:

• Paid upfront when the appraisal is ordered
• Included in your closing costs
• Non-refundable, even if the loan doesn't close
• Required before the lender will issue final approval

Exceptions:

• Refinances: Borrower always pays
• Purchase transactions: Sometimes negotiated as seller-paid closing cost
• VA loans: Seller can pay appraisal fee in some cases
• Lender promotions: Some lenders cover appraisal costs as incentives

When is an Appraisal Required?

Appraisals are typically required for:

• Purchase mortgages: All loan types require appraisals
• Refinances: Most refinances need new appraisals
• Home equity loans: Usually required for larger loan amounts
• HELOCs: Most lenders require appraisals

Appraisal Alternatives:

• Desktop appraisals: $150-$300, no property visit
• Automated Valuation Models (AVMs): $10-$50, computer-generated
• Broker Price Opinions (BPOs): $100-$200, real estate agent assessment
• Property Inspection Waivers (PIWs): No appraisal needed for some loans

What Appraisers Look For

Understanding what appraisers evaluate can help you prepare:

Property Factors:

• Square footage and room count
• Property condition and age
• Updates and improvements
• Lot size and landscaping
• Garage and parking

Market Factors:

• Recent comparable sales
• Neighborhood trends
• Local market conditions
• School district quality
• Proximity to amenities

How to Prepare for an Appraisal

1. Clean and declutter: Make your home look its best
2. Complete minor repairs: Fix obvious issues like leaky faucets
3. Compile improvement records: Document recent upgrades and their costs
4. Research comparables: Know recent sales in your neighborhood
5. Be present: Available to answer questions and provide access
6. Highlight unique features: Point out special amenities or upgrades

What if the Appraisal Comes in Low?

If the appraisal is lower than the purchase price, you have several options:

• Request a reconsideration: Provide additional comparable sales
• Get a second appraisal: Some lenders allow this option
• Negotiate with seller: Ask them to reduce the price
• Bring more cash: Make up the difference at closing
• Walk away: If you have an appraisal contingency

Ways to Save on Appraisal Costs

• Shop lenders: Some offer appraisal credits or waivers
• Negotiate closing costs: Include appraisal fee in seller concessions
• Consider appraisal waivers: Available for some conventional loans
• Bundle services: Some lenders offer package deals
• Avoid rush orders: Plan ahead to avoid expedite fees

Conclusion: Budget for Success

Appraisal costs are a necessary part of the mortgage process, typically ranging from $300-$600 for most single-family homes. While the fee might seem like another expense, remember that the appraisal protects both you and your lender by ensuring the property's value supports the loan amount.

By understanding the factors that influence appraisal costs and preparing your home properly, you can ensure you get good value for this important service. Remember to factor appraisal fees into your overall homebuying budget, and don't hesitate to shop around for lenders who might offer appraisal credits or other incentives.