How much does Real estate appraisal cost?

If you’ve been involved in either the home-buying or home-selling process, you may have used a real estate appraisal service. Real estate appraisals are detailed reports that assess a home’s value in fair market conditions. They’re most often ordered before a home sale, but may also be required when refinancing a mortgage, applying for a home-equity loan, or dividing up assets during a divorce or after a death.

These reports are compiled by certified appraisers, whose credentials come from the Appraiser Qualifications Board (AQB). The appraiser will consider a variety of factors, including type of loan, type of property, condition of the home, square footage of the house and land, number of bedrooms and bathrooms, and other issues that affect a home’s value—such as the desirability of a neighborhood and its proximity to schools and grocery stores.

Any home upgrades, renovations, remodels, and home improvements that increase curb appeal can also add value to a residential appraisal. On the other hand, poor maintenance or structural issues, including foundation problems, leaking plumbing, or a damaged roof, may vastly reduce the appraised value.

To determine a property’s value, the appraiser will visit the home, describe the interior and exterior in detail, and perform a market analysis by looking at the recent sales prices of comparable homes in the area (known as “comparable sales,” or “comps”). After the appraisal process, they’ll provide a detailed written analysis of the value of the home based on their observations.

This guide explains how much you can expect to pay for a real estate appraisal, based on the kind of evaluation you need and type of property involved.

An appraisal is required by mortgage lenders before a loan is approved, and is used by real estate agents, borrowers, and lenders to determine a property’s correct purchase price. In a sale, the home buyer typically pays for the real estate appraisal. But this is often a negotiable closing cost—if the seller is especially anxious to sell the property, they may volunteer to pay the appraisal fee. 

The average cost of a home appraisal is $350–550. However, this can vary depending on the type of appraisal and property.

There are a several types of home appraisals:

Drive-by home appraisal. These reports involve viewing just the home’s exterior. Because the appraiser doesn’t enter the home for a full inspection, lenders don’t typically accept drive-by appraisals for securing home mortgages. However, they can be used for other forms of lending, such as lines of credit or a refinance, as long as you have enough equity in your home. Average cost: $100–200.

Hybrid home appraisal. This appraisal report combines a drive-by inspection and a traditional appraisal. A third party enters the house and collects data on measurements, conditions, and other features. This information is then passed on to the appraiser, who uses it, along with data from a drive-by appraisal, to determine the property’s value. This method is most often used to determine whether a home’s value covers the mortgage in a fluctuating market, though some lenders allow them for mortgage and refinance appraisals. Average cost: $250–400.

Traditional home appraisal. This is the most common form of real estate appraisal report and the one most often required to obtain a mortgage. Traditional home purchase appraisals involve a complete onsite evaluation of the home, property, and surrounding neighborhood to determine an accurate market value. Average cost: $350–500.

The price of an appraisal is also affected by the type of property being evaluated. Here are the most common types of properties and their average appraisal costs.

Mobile home. Mobile homes tend to be more standardized and have less square footage than other homes, making them easier to evaluate. However, some mobile home owners also have land surrounding the home, which can increase the cost of an appraisal. Average cost: $300–600.

Condominium. Unlike single-family homes, multi-family homes such as condos don’t typically have a land evaluation attached to them. However, a professional appraiser must determine the worth of the entire building, as well as the individual unit, to obtain an accurate value. Average cost: $375–450.

Land. Land-only appraisals don’t involve a walk-through of a structure on the property. However, other features of the land, such as water supply, must be inspected. Often, an evaluation requires the appraiser to do additional research on the surrounding properties in the area to determine an accurate value. Average cost: $300–500.

Single-family home. The price of a single-family home appraisal will depend on size of home, amount of property surrounding it, and number and type of upgrades to the home and property. Average cost: $375–450.

Estate. Estate appraisals are typically performed after the owner’s death or in a divorce situation to determine the value of the home and its contents. The appraised value helps determine the taxes due on the property and how to divide the estate equitably. The number of items in the home that need to be cataloged can affect the appraisal price considerably. Average cost: $400–1,000.

Does a messy house affect an appraisal?

Clutter can affect a home’s valuation during a real estate appraisal. It makes the property look poorly maintained, and can also prevent the appraiser from gaining access to important areas that are required to determine value. If you have trouble keeping your house tidy, it may be worthwhile to hire a professional organizer before a home appraisal.

What are the types of real estate appraisals?

The most common kinds of real estate appraisals are drive-by (in which the appraiser views a home’s exterior), hybrid (in which the appraiser views the exterior and someone else collects data on the interior), traditional (a full evaluation of the house and property), and estate appraisals (which include the home’s contents). During the sale of a single-family home, a mortgage lender will typically require a traditional appraisal, which is usually paid for by the buyer.

What does an appraisal tell you?

A home appraisal is a complete report, compiled by a certified appraiser, to assess a property’s value in fair market conditions. It’s based on an examination of the home and land, as well as information about the neighborhood and recent sales prices of similar homes. An appraisal is required by mortgage lenders before a mortgage loan is approved, and helps sellers, buyers, realtors, and lenders value a property correctly before making a sale or getting a loan.

Find real estate appraisal services in your area.