How Much Does an Appraisal Cost?

What Is a Home Appraisal?

A home appraisal is a formal process by which an independent, licensed appraiser assesses a home to determine its fair market value. To determine a home’s value, the appraiser will review the price of comparable homes in the area; analyze data related to your home’s age, construction materials, and renovations; and walk through the home to assess its condition.

Some of the things the home appraiser will assess to determine its value include:

• Square footage of the home and acreage of the lot

• Age and location of the home

• Construction materials and current condition of the home

• The economy and local market

• Design and style of the home, as well as any special features, like a fireplace, pool, or upgraded energy-efficient appliances

Why Do I Need an Appraisal?

Mortgage lenders typically require a home apprasial, so if you aren’t paying cash when buying a house, you will likely need to get an appraisal. But despite home appraisal fees in an already expensive home-buying process, a home appraisal is almost always a good idea.

In fact, a home appraisal benefits both the buyer and seller—and homeowners with unfavorable mortgage rates.

• Buyer benefits: As a home buyer, an appraisal lets you know if the house is actually worth what you offered. If the appraiser assesses the property's value to be less than what you sent, your contract should have an appraisal contingency that allows you to walk away from the deal. But because the seller can also see the appraisal, they might be willing to lower the asking price to what the appraisal returned.

• Seller benefits: If you have put a lot of work into your home, you can hire an appraiser before you list. Be sure to point out to the appraiser all the upgrades (and back it up with paperwork). This can ensure your appraisal comes back as high as possible, which you can use to up the asking price when you go to list.

• Homeowner benefits: If you want to refinance your home, you will likely need to get an appraisal. If the appraisal comes back higher than it did when you bought the home, this gives you more equity in the house, which could result in a higher loan value (if refinancing to get a home improvement loan) or a lower interest rate on your new mortgage loan.

Who Pays for an Appraisal?

Typically, the buyer pays for the home appraisal, though the appraiser fees usually get lumped into the overall mortgage. And with the average cost of a home surpassing $450,000, the $350 home appraisal cost barely impacts the final number.

That said, buyers can put in their offer contract that the seller pays for various fees, including the home appraisal. If the seller accepts the offer with those conditions, buyers don’t have to worry about that fee.

Home Appraisal vs. Home Inspection

While similar, a home appraisal is less thorough than a home inspection. A home appraisal is a process by which an independent appraiser assesses the overall value of a home, looking at feature lists, home data, and visible defects; mortgage companies generally require a home appraisal.

A home inspector, however, looks much more closely at the home and its systems—including electrical, plumbing, and appliances—to find problems. A home inspector’s job is to find any potential issues that the buyer should know about before moving forward with the purchase. If a home inspection reveals bad news—like a leaky roof, asbestos or mold, or an air conditioner on its last limb—the buyer can walk away from the deal or lower their offer.

While a home appraiser is independent and serves both the buyer and seller equally, a home inspector is supposed to keep the buyer’s best interests in mind. A home inspection costs between $275 and $400, on average.

Note: Most inspectors are generalized. Certain homes may require further, specialized inspectors, like a structural engineer or a roof inspector. A roof inspection costs $225, on average.

Home Appraisal Cost Factors

While the average home appraisal costs just $350, several cost factors can drive up that price.

Size of Home/Lot

Hiring an appraiser for the average single-family home costs $325 to $425, but a multifamily home could more than double the cost. Similarly, a small two-bedroom home costs less to assess than a massive 10-bedroom mansion, primarily because of the difference in the time investment for the appraiser.

Appraising vacant land functions the same. An appraisal for an empty residential lot might cost as little as $200, but you’ll pay much more for several acres of property.

Location of Home/Lot

If the appraiser can easily access your home or lot, standard appraisal costs should apply. But if you live in a popular metropolitan area with a higher cost of living, expect to pay more for your home appraisal (starting at $600 in some cases). Similarly, houses in remote areas, like up in the mountains, will be more difficult for an appraiser to reach, resulting in higher prices.

Time of Year

If your property is more challenging to access in the winter, the home appraisal will cost more.

Condition of Home

If your property is in good shape, a home appraiser can likely finish their job in 1 to 3 hours for the typical home size. If there are clear structural issues that require more time to review, however, expect to pay more. More complex appraisals can exceed $1,000 for a basic home.

Residential vs. Commercial

Commercial appraisals cost more than home appraisals, typically between $1,500 and $10,000 or more. Commercial appraisals may include a review of local zoning records, environmental impact studies, and other more complicated assessments that increase the length and complexity of the appraisal.

A Member of the Appraisal Institute (MAI) will often conduct a commercial appraisal. Because the MAI designation requires advanced education and experience, MAI appraisers can charge more.

Home Appraisal Costs Near You

Home appraisal prices vary by state. The table below explores the typical range in each state:

Appraisal Cost by Home Type

Residential House

A residential home’s appraisal fees range from $300 to $425 depending on the type of loan and the home’s location and condition. Expect to pay slightly more in urban areas. But rural areas may have high costs, too, if the appraisal lacks comparable properties or other unusual circumstances.

Farm and Land

Land appraisals for a residential lot cost just $200 to $600, but for raw land or farmland of several acres, expect to pay $1,000 to $3,000, on average, with some reports of $8,000 or more for larger acreage; large plots of land can be more difficult to appraise.

Before listing your land, you may need an updated land survey. A land survey costs from $375 to $750.

Condo

A condo costs $300 to $500 to appraise, like a single-family home. Because plenty of comparable properties often surround condos, values tend to be a little easier to find.

How to Hire an Appraiser

As a buyer or a seller, you can ask your real estate agent for a recommendation for good home appraisers near you. You can also search the government’s national registry of licensed appraisers. You should always talk to at least three appraisers to learn about their credentials, experience, and price, then pick the best fit.

If a mortgage loan is involved, the lender hires the appraiser.

FAQs

How much is a bathroom worth on an appraisal?

You can estimate a bathroom addition’s value between 10% to 20% of a home’s value. But this also accounts for extra square footage since homes with more bathrooms tend to have more space. When considering adding one, you should know that a bathroom generally adds only $5,000 to an appraisal price initially, with adjustments made for other factors like local home values.

How much is a garage worth in an assessment?

Garages increase a property’s value by about 80% of the build price. The national average cost to build a garage is $27,600.

However, on an appraisal, a garage contributes to the whole rather than as a part. For example, if you have a garage, your appraiser then tries to compare it to nearby homes with garages, which often have a higher value.

How much is the value of a bedroom in an average appraisal?

A bedroom can add anywhere from $10,000 to $25,000 or more to an appraisal. It depends heavily on the size of the bedroom, the overall home’s value, the location, and what amenities it might include (like a walk-in closet).

How do I get the highest appraisal?

Appraisers are busy, so any information (enhancements and what you paid) is usually welcome. If you provide a list and leave it on the kitchen counter or personally hand it to the appraiser, they will most likely use that information to determine your home’s value.

Small projects, like exterior landscaping improvement, can lead to a larger appraisal. You can make your home appear larger and more inviting by tidying it up, putting away countertop appliances, and pulling furniture away from the walls. This might provide a more pleasant experience for the appraiser.

How much does a drive-by appraisal cost?

A drive-by appraisal usually costs $100 to $150. For a drive-by appraisal, the appraiser only visually assesses the home's exterior, in addition to reviewing the real estate records on the home and comparing it to nearby homes.

How much do VA and FHA appraisals cost?

An FHA appraisal costs between $300 and $500, in line with the average home appraisal cost. Federal Housing Administration (FHA) loans are usually less strict, so the appraisals are often more affordable. VA appraisal fees range from $425 to $875 for a single-family home. Compared to FHA loans, VA loans can be more involved.

What do appraisers look for?

A home appraiser will look at the real estate paperwork related to the home, but they will also do an exterior and interior assessment. Reviews include the:

• Square footage of the home and acreage of the lot

• Age and location of the home

• Construction materials and current condition of the home

• Economy and local market

• Design and style of the home, as well as any special features, like a fireplace, pool, or upgraded energy-efficient appliances

While an appraiser won’t be as thorough as a home inspector, they will likely notice very obvious problems and defects.