How Much Does a Home Appraisal Cost?

If you are buying a home, getting a home appraisal is a wise decision. The appraiser will evaluate how much the house is worth based on other comparable properties in the area, and adding in extra features that create value. Home buyers use the appraisal to determine if the pricing on the house is fair and reasonable. Sellers often have an appraisal done to make certain they have the correct pricing for their home.

A home appraisal costs on average $375-$450, with the average homeowner spending around $400 for a single family, 1,300-1,700 square foot home with a few upgrades and small property. Keep in mind there are several factors that can increase the pricing such as the size of the property, the number of home appraisers available, or if it is a high-end home where a ‘jumbo loan’ is required.

Home Appraisal Fees

House Appraisal Cost
National Average Cost	$400
Average Range	$375-$450
Minimum Cost	$300
Maximum Cost	$1,000

Average House Appraisal Fee by Type of Property

While there are several factors that contribute to the appraisal fee, the type of property you are buying impacts the house appraisal cost. Many times smaller properties equate to a lower price for the appraisal. Keep in mind that there are other components as well but size is a larger part of the fee.

Land Appraisal Cost

Land appraisals are generally priced lower as there is less work to evaluate the property - no home to walk through. Much of what the appraiser will need to evaluate is done through research on surrounding properties. Land appraisal cost runs $300-$500.

Mobile Home Appraisal Cost

Mobile homes are also known as manufactured homes as they are built in a factory and then moved via truck to a lot or property. As many people who have mobile homes also have land surrounding the home, the cost varies for the appraisal at $300-$775.

Condo Appraisal Cost

It would seem that condo appraisal cost would be less expensive than a single family home. However, that is typically not the case as condos have to have the entire building value accessed and then each condo individually. Expect to pay $375-$450 for condo appraisal.

Single Family Home Appraisal Cost

A single family home is simply a home that is meant to house one family only as opposed to a multi-family home which would be a duplex or condo. Most residential neighborhoods consist of single family homes. The cost for a single family home appraisal is $375-$450.

Multi-Family Home Appraisal Cost

Multi-family homes are buildings that provide housing for 2 or more families. These would generally be townhomes or duplexes. A multifamily home appraisal cost is $400-$800.

Estate Appraisal Cost

An estate appraisal is normally done after the death of the owner or in a divorce situation to access the value of the home and its contents. The figure that is reached helps to determine the taxes due on the property as well as how to divide the estate equitably. Cost for an estate appraisal may start as low as $400-$1,000, depending on the extent of the contents.

Ranch Appraisal Cost

As a ranch consists of acres of land, the appraisal is typically more expensive. The pricing could also include the purchase of livestock and farm equipment. A ranch appraisal cost $600-$1,000.

Home Appraisal Fees by Home Size

Home appraisal fees are often charged according to home size. It makes sense that if there is more square footage to appraise, the appraiser would charge more. He/she would need to measure and consider any upgrades in each room. In addition, a larger home often has more expensive such as granite, hardwood floors, marble tubs, etc. These upgrades take more time to add to the value.

Property Appraisal Cost by Lender

A property appraisal is always done by a third-party impartial individual. If the lender is ordering the appraisal, they choose who will do the appraisal. Before the appraisal or any other money is spent, the lender will provide the buyer with a loan estimate and closing disclosure so that all upfront and closing fees will be known ahead of time.

Private Appraisal Cost

A private appraisal is simply one that is done by the buyer or the seller, independent of the appraisal ordered by the lender. This type of appraisal can be completed by your choice of appraisers but be aware it may not be used by the lender. Oftentimes, a buyer or seller want to have a second opinion on the value of the home and in this case will pay for a private appraisal at a cost of $375-$450.

Bank Appraisal

If you are financing your home through a bank, there will be a charge for a bank appraisal. This may be in your closing costs or you may be required to pay prior to closing. Bank appraisals are done by a licensed appraiser, typically drawn from a list used frequently by the bank. Cost for a bank appraisal is generally based on size, type of property, and upgrades. An average cost is the same as a private appraisal at $375-$450.

FHA Appraisal Cost

FHA has its own separate home appraisal checklist for approval. Basically, FHA wants to know that the home they are financing will be safe and that it is a secure investment. In order for a home to be financed by FHA, it must meet the guidelines set by the Department of Housing and Urban Development, or HUD. As is the case with other types of lending, the appraisal is priced according to size, type of property, location, and upgrades, typically at a cost of $375-$700. While FHA does not set forth required pricing, it must see the costs as reasonable and customary for the housing market in that area.

VA Appraisal Fees

Although the average cost of an appraisal is pretty much the same across the board, VA appraisals are governed by the VA. This means that costs cannot rise above a certain level that varies from state to state, $450-$1200. This is also decided by the type of the property. For instance, in Florida, a single family home appraisal cannot cost more than $500 and the report must be completed within 7 days. In Montana, a manufactured home appraisal cost cannot exceed $825 and turnaround time is 14 days. To see your state’s information, check out this map for VA appraisals.

What to Do Before a Home Appraisal

The value of your home will be directly influenced by how the home looks. Here are some things to do before the appraiser comes:

• Declutter. A cluttered home is much less appealing to anyone. A clean, tidy home will appraise better than a dirty and crowded one. Remove unnecessary items inside and outside to create a more organized atmosphere. Small tasks like adding a coat of fresh paint or several bags of new mulch will make your home more appealing.
• Make sure your appraiser knows the neighborhood - It is vital that your appraiser have a fairly good understanding of your neighborhood. The final pricing he/she determines is related to comparable homes in your area. Do some research of your own and find similar properties in your area. Similar properties near you will make certain your appraiser has all he/she needs to do a fair analysis.
• Make any necessary renovations or upgrades. Renovations and upgrades are often deciding factors in pricing. If another home just like yours has been updated while yours hasn’t, yours will be valued at a lower price.
• Keep proof of all the renovations you’ve made to show the value of the changes. Potential buyers may also want proof of work done that isn’t visible.
• If you are ready to sell, don’t start any new renovation projects as this can make your home dusty and disorganized. Finish any existing projects before starting the selling process.

What Does a Home Appraisal Include?

As a seller, you will want to know the value of your home to make certain you get top dollar when you put it on the market. As a buyer, you will want to make certain the home you are buying is worth the same or more than what you are paying. A home appraisal will help to clarify both of these situations. In addition, the lender usually requires a home appraisal to ascertain that the home is worth the asking price.

Appraisal Report Cost

Your home appraisal report will include a full description of the property. This will note the condition of the home and property, neighborhood growth and value, obvious repairs needed, the names on the title, and the overall square footage as well as the size of each room. Any upgrades or improvements will be added into the value. Also included will be market information based on surrounding areas. Other information would include proximity to lakes, rivers, easements or encroachments, zoning classifications, and utility services available. Typical cost for an appraisal report is $375-$450, which is already included in the overall appraisal fee.

Appraisal Inspection Fee

Often an initial appraisal is done on a new home before it is completed. In this case, the buyer or seller will pay for an appraisal final inspection fee of $150-$175 to ensure that all work has been completed and is up to code. In situations where renovations are done with a reinspection to include completed projects in the home value portion, a buyer or seller may need to pay an appraisal reinspection fee for $150-$175.

Home Appraisal Cost Factors

Although size does affect the home appraisal cost, there are several other factors as well. Factors include:

• Type of property. Single family ($375-$450), multi-family ($400-$800), and mobile homes ($300-$775), condos ($375-$450), land ($300-$500), ranch ($600-$1,000) and estate appraisals ($400-$1,000) are all priced differently. Each has a different amount of time and research needed so it makes sense that costs vary.
• Type of loan. A jumbo loan is needed for a home that costs more than $510,400 in most areas. The appraisals for these types of purchases are more heavily scrutinized. Cost for a jumbo loan appraisal can be as much as $1,000. Some mortgage companies may require a 2nd appraisal to compare the results.
• Urban or rural setting. Urban settings are areas that have a more dense population. This type of appraisal is priced at $375-$450. A more rural setting will require more research as the appraiser will need to not only appraise the home but the land as well resulting in a cost of $600-$800.
• Availability of appraisers. As with any supply and demand situation, if there is a short supply of appraisers available in your area, the cost of your appraisal may go up. This could mean your appraisal could cost $100-$200 more.
• Home age. While the age of your home doesn’t directly affect the cost of the appraisal, it could be more expensive if the home’s age creates more work for the appraiser. For instance, if your home is older but others in the neighborhood are newer, the appraiser will have to do his research to find comparable values. This could increase the cost of the appraisal by $50-$150.
• Upgrades. A home with upgrades will require a little more work. While upgrades typically have a price point that is generally used, the more upgrades the more time it will take to factor those in. If your home has lots of upgrades, you can expect to pay $100-$200 more.

Why Do you Need an Appraisal Before Buying a Home?

Obtaining an appraisal is always a wise decision both for the seller and the buyer. Sellers want to make sure they price the home so they get the maximum amount possible while buyers want to ascertain they aren’t paying too much for a home.

Mortgage companies as lenders are focused on only lending an amount that is equal to the value of the home or less. Because this is key to running a profitable lending business, a mortgage company will always require an appraisal. A typical mortgage appraisal fee is $375-$450.

For a refinance, the mortgage company will often require a new appraisal for the same reasons as a new purchase - to make certain the home is worth the same or more than they are lending you. A home appraisal for refinance will cost $375-$450.

Who Pays for the Home Appraisal?

The cost for the home appraisal is a negotiable closing cost. If the seller is particularly anxious to sell, he/she may volunteer to pay this fee. On the other hand, if the buyer is very motivated he/she may be the paying party. Certain states may have requirements for the amount or the category a buyer or seller is allowed to pay for in closing costs. Your real estate agent or mortgage company will be able to help you determine who should pay for the appraisal.

How Often Do Home Appraisals Come in Low?

If you are listing your home through a real estate agent, typically the price you have on the home is fairly on point. However, that is not always the case and you may get an appraisal lower than purchase price. If this happens, the homeowner can write a letter and ask for an appeal. Keep in mind that this will only work if there is proof that the original appraisal was incorrect. An example would be if the appraiser didn’t realize you had put a new roof on the house or that your neighborhood had an amenity center with a pool. These types of situations are the stuff of nightmares for buyers and sellers alike. If you are desperate to sell and the report comes back with a house appraisal lower than offer, you can always offer to pay more closing costs.

How to Get the Highest Appraisal on Your Home

What negatively affects home appraisal? A crowded or extremely dirty home will influence the appraisal value of your home. Any repairs that have been left undone will also lower your home’s value. If you have neighbors whose yard or house looks unkempt, this will affect the appraisal amount as well. Broken concrete, peeling paint, rotting boards, debris, and other signs of neglect will bring a lower price point.

Adding fresh mulch ¹, paint, cutting the yard, trimming bushes and edging the grass, pressure washing the sidewalk and driveway are all ways to add curb appeal to your home. Inside, do away with clutter, clean up areas of mold, mildew, or dust. Clean or paint baseboards, make necessary repairs, straighten closets, cabinets, and remove items from bathroom/kitchen counters. Shampoo carpets, mop floors, clean the windows and doors, bathrooms, and kitchen area. Keep furniture to a minimum to make your home look larger.

How Long Does a Home Appraisal Take?

The home appraiser may take as little as 30 minutes or several hours to complete the inspection part of the process, depending on the size of the home, property, upgrades, and how accessible all of the areas of the home are. Then he/she has to do the research and calculating necessary to come up with an accurate analysis. It can take 3-10 days to get your appraisal done.

Real Estate Appraisal Approaches

Although the outcome of the real estate appraisal is always to come up with a fair value, the approach used is often different based on the type of property. Whether comparing an existing home, a new home, or an income-producing property, the appraisal method varies and real estate agents/appraisers will choose the right method for each individual situation.

Comparison Approach Appraisal

The Real Estate Sales Comparison Approach is used to compare apples to apples - in other words, finding homes just like yours within your neighborhood to compare recent sales. Once a comparison is done, any upgrades should be added to the value determined.

Cost Approach Appraisal

The Real Estate Cost Approach method is used more effectively on new homes. The appraiser will add the value of the vacant property to the current cost of building the home. Depreciation will be subtracted but with a new home, there is no depreciation.

Income Approach Appraisal

The Income Approach Appraisal is generally used for income-producing properties, like a rental house. In this situation, an investor wants to take into account any repairs or renovations that may need to be done.

Home Appraisal vs Inspection

A home inspection is different from a home appraisal. While the home appraiser is looking for items that add or take away value, the home inspector is looking for problems. While some lenders require a home inspection, others may not. Buyers should always have a home inspection done prior to buying a home as there are no guarantees the home is sound. The inspector is looking for repairs that need to be done such as HVAC systems problems, roof, plumbing, or electricity issues, leaks in windows and doors, structural and foundational issues, cracks, infestations, mold, mildew, appliances that will soon need replacing or aren’t in working order. Once the inspection is done, the buyer can approach the seller with a list of items to fix. The buyer has the option of performing the necessary tasks or losing the buyer. Cost for a home inspection is $275-$400 versus the average cost of a home appraisal at $375-$450.​

Additional Considerations and Costs

• Appraisers must complete 79 hours of national coursework education provided by the Appraisers Qualification Board. In addition, the state in which the appraiser wants to work may have education requirements of its own. After completing this work, the student must work 1,000 hours under a licensed real property appraiser. Then, he/she needs to pass the Real Property Appraiser Exam and apply for a license.
• Appraisal fee change of circumstance. Generally, there is a 0% tolerance for increased appraisal fees. The appraiser should stick to the original price stated. However, if new information is received that can change the cost of the appraisal, the appraiser has three days to disclose this to the lender and charge a higher price. This is called a change of circumstance. It could be such information as the home having more property or being larger than originally thought. In some instances, the increase is capped at a 10% increase.
• Home layout. Home layout does not affect the cost of the appraisal. However, a more open floor plan is generally appraised higher as opposed to a counterpart chopped up floor plan.

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