How Much Does a Home Appraisal Cost?

As you navigate the homebuying process, you’ll reach the step of getting a home appraisal. As a buyer, the home appraisal is a crucial part of the process, especially when you’re applying for a mortgage. One of the top questions you may be wondering about is – how much does a home appraisal cost? 

In this Redfin article, we’ll answer your questions about home appraisal costs, what factors can influence the cost, and who pays for a home appraisal. Whether you’re buying a home in San Diego, CA, or a townhouse in Boston, MA, here’s what you need to know about home appraisal costs.

Key takeaways

• Home appraisals are an unbiased professional opinion about a home’s market value. 
• Home appraisals can cost anywhere from $200 to $2,000 depending on the size of the house, location, and features.
• There are six types of home appraisals, but the Uniform Residential Appraisal Report (URAR) is the most common.

How much does a home appraisal cost? 

A typical home appraisal can range from $200 to $600, and up to $2,000 for larger homes. According to the NAR, the average home appraisal costs $500. However, the cost of your home appraisal will depend on the type of appraisal you need, how big the home is, and what state you live in, among other factors. 

Who pays for the home appraisal?

Buyers typically pay for the home appraisal, as it’s part of the closing costs. The buyer’s lender will request the appraisal and choose the appraiser. The buyer will pay the cost at closing. In some cases, buyers may negotiate for the seller to pay for the appraisal as part of the seller concessions. 

What factors affect the home appraisal cost?

Before you have a home appraised, there are several important factors that can affect the cost of your home appraisal. 

Type of property

The type of property you plan to buy will influence the cost of your home appraisal. For example, an appraisal for a two-bedroom home will be less expensive than one with multiple bedrooms, a finished basement, and an attic. Additionally, if you plan to set up your home as a rental property to generate income, the appraiser will require a rent survey and an income statement, which may increase the cost.

The home’s value

The general value of the home impacts the cost of the appraisal. As a rule of thumb, the larger the home, the more expensive the appraisal. A larger home will take more time to evaluate and usually results in a more extensive report. As a general reference point, properties priced at or less than $500,000 will typically have an appraisal cost at the lower end of the range.

The home’s location 

How far does the appraiser need to travel to conduct the appraisal? Driving times and mileage are all accounted for, so you should expect to pay more for your home appraisal if the house is located out of town. If you’re located in a popular area, you may also need to pay more as the demand for appraisers may be higher. 

Number of comparable homes

If your home is located in a more rural area or you have unique home features that stand out from nearby properties, your appraisal may cost more. The appraiser may need to spend more time finding comparable homes to complete the appraisal, driving up costs. 

Type of mortgage you’re applying for

Depending on the type of mortgage you’ve applied for, it may result in a more costly home appraisal. If you plan on getting a conventional mortgage loan to purchase your new home, getting an appraisal will most likely be a non-negotiable requirement from your lender. Make sure to ask your lender ahead of time what to expect for the home appraisal cost, so you can be sure to set aside that amount to be paid as part of the home closing process. 

Mortgages that involve a federal agency, such as the Federal Housing Administration (FHA), require an appraisal to include additional safety inspections, resulting in a higher cost. Here’s what you can expect:

FHA loans: These loans require additional safety inspections during the appraisal process. They must meet HUD property standards such as structural soundness, safety, and livability. There’s no set limit for how much these appraisals can cost.

VA loans: VA appraisals typically cost between $500 and $1,500, but this varies by region and home size. There may also be additional fees, which you can find listed on the VA appraisal fees page.

USDA loans: As of February 2024, the USDA appraisals cost a flat fee of $775 for single-family homes. 

Type of appraisal

The type of appraisal can also determine how much it costs. Your lender will choose the type of appraisal they need to finalize your loan. The type of appraisal depends on your loan’s requirements, your qualifications, and market conditions.

6 types of home appraisals

There are several types of home appraisals, and some are more common than others. Let’s explore them:

1) Uniform Residential Appraisal Report (URAR)

This is the most common type of home appraisal out there, and lenders typically require a URAR before approving your mortgage. During a URAR, a trained and certified appraiser carefully reviews both the home’s interior and exterior. 

The home appraisal process takes two to four hours — and costs between $300 and $400. At the end of the evaluation, the appraiser will give you a detailed report breaking down your home’s value. This is the most extensive, and therefore most expensive, type of home appraisal.

Note: The remaining five types of appraisals are generally not considered sufficient to obtain a conventional loan, but there are reasons why you may want one of these appraisals. Your lender will determine if any of the following appraisals are sufficient.

2) Drive-by appraisal, restricted-use, or short-form report

Typically called a “drive-by appraisal,” this type provides less information than other appraisals. Therefore, this home appraisal cost is generally less expensive, around $100 to $150. However, lenders generally don’t accept this type of appraisal for mortgage approval. 

More likely, homeowners and real estate agents may use it to help determine a home’s listing price. For this type of house appraisal, a trained and certified appraiser evaluates only the outside of the house and relies on the owner to provide information about the home’s condition and other details inside. 

3) Hybrid appraisal

Another common type of appraisal is a hybrid appraisal, which combines in-person and online assessments. It typically costs between $250 to $375. Typically, a third-party, sometimes a real estate agent, will view the home in person and write out information about the home. They submit the information to the appraiser, who will use that data in addition to listing photos to determine the home’s value. 

4) Desktop appraisal

A desktop appraisal is similar to a drive-by appraisal, except that the appraiser never visits the home. They use publicly available information, such as property records, listing photos, and property tax records to appraise the home. It usually costs between $75 to $200. 

5) Comparative market analysis (CMA)

Real estate agents use a CMA to value a home, considering factors like nearby home values, ratings for school districts, and the home’s general condition of their analysis. CMAs provide a reasonable estimate for a home’s value when setting a listing price. While this report is more likely used as a tool for sellers rather than buyers, you can always ask your real estate agent for a CMA if you’re looking to buy. It’s important to note that lenders do not consider a CMA as a valid appraisal to determine loan value. 

6) Online appraisals

Numerous online sites offer home appraisals directly to buyers who want to know how much their house is worth. An online home appraisal can be free or have some cost depending on how much information you request. Lenders do not accept this type of home appraisal as a valid appraisal. 

FAQs about home appraisal costs

Can I lower the home appraisal cost?

You can’t negotiate the cost of a home appraisal, as it’s your lender who chooses the appraisal company. However, you can shop around for a mortgage lender who offers a competitive appraisal cost. You can also consider negotiating with the seller to include the appraisal cost as part of the seller concessions. 

What is a home appraisal? 

A home appraisal is an unbiased determination of a home’s value. Your lender will use the house appraisal to generate an appraisal report. The report helps lenders decide an appropriate amount to lend to a potential homebuyer to purchase that property. State-certified professionals conduct appraisals to safeguard both buyers and lenders against inflated property valuations.

Who chooses the home appraiser? 

Your mortgage lender will often choose or recommend from a list of preferred appraisers, chosen for their track records as reliable, high-integrity professionals. As the buyer, you’ll have to pay the appraisal cost, which usually is a fee added to your closing costs. However, your lender should inform you how much the appraisal will cost when you begin the pre-qualification process, so you’ll know just what to expect.

What’s the difference between a home inspection vs a home appraisal?

A home inspection differs from a home appraisal in that it’s an in-depth inspection of the home’s condition. A home inspector checks for structural damage, hazards like water, termite, or mold damage, and other issues with the property. A home appraisal determines the home’s overall value based on its characteristics, condition, and nearby properties. Both are important in the homebuying process as an inspection ensures that you’re not buying a home with major issues, while an appraisal ensures you’re not paying more than the home’s worth.

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