SDI Productions/ Getty Images; Illustration by Austin Courregé/Bankrate
Key takeaways
- Home appraisals are typically required by mortgage lenders before the loan can be approved.
- The cost can run several hundred dollars, and can depend on factors like the home’s size, condition and more.
- Appraisal fees are typically paid by the buyer as part of their closing costs.
Whether you’re a homeowner looking to sell or a buyer about to close on a purchase, a home appraisal is an important step. Conducted by licensed professionals, appraisals objectively determine how much a home is worth. This can be helpful information for homeowners to have before deciding on a list price for their property. And for buyers, it will be required by mortgage lenders to confirm the home is worth at least the amount of the loan. But a home appraisal isn’t free, and the exact cost will vary depending on the home’s size and location. Read on to learn more.
Why is an appraisal important?
Home appraisals provide a great benefit to homebuyers. “An appraisal is always in the best interest of the buyer, as it will assess the value of the property and help the buyer have confidence in the purchase price of the home,” says Jackie Boies, senior director of housing counseling at Money Management International.
It’s also a useful tool to establish the parameters of the mortgage loan. “The appraised value of a home is crucial in determining the loan-to-value ratio, or LTV, which lenders use to assess risk,” says Bruce McClary, senior vice president of membership and communications at the National Foundation for Credit Counseling. “A lower LTV, often achieved with a larger down payment, typically results in more favorable interest rates. While a well-maintained property can contribute to a higher appraisal, its impact on the interest rate is primarily through its effect on the LTV.”
With rare exceptions, lenders always require home appraisals both for home purchases and mortgage refinances. These evaluations are required to be independent and objective. Appraisers typically visit a home in person to conduct a visual inspection and analyze a number of factors, including its location, age and condition. They also look at the neighborhood and recent home sales nearby, known as comparables or comps, as part of their assessment of the home’s value, and may also consider the local market conditions and the overall economy.
Home inspection vs. home appraisal
While these two terms sound very similar, they are not the same thing. A home appraisal assesses a home’s value. A home inspection, on the other hand, is focused on identifying whether a home has any safety or structural issues that might be cause for concern. While an appraisal will likely be mandatory and an inspection is technically optional, both steps are equally important for homebuyers.
How much does a home appraisal cost?
The average price for an appraisal of a single-family home is $357, according to 2025 data from Angi. This typical range is between $314 and $423, and the final cost depends on a number of factors, including the property’s size and condition and the level of detail involved in the appraisal. A large home or property will usually cost more to appraise, as will one in a larger city or an area with a higher cost of living.
What factors influence home appraisal cost?
| Location | Different areas will have different average prices — for example, Angi data shows that the average home appraisal cost in Cleveland is $325, while in Seattle it’s $500. Federal law requires that appraisers’ pricing be “reasonable and customary” for the geographic area. |
| Property size | Generally, a larger property will cost more to appraise. |
| Condition | Expect to pay more for a home in poor condition or in need of extensive repairs, because it requires extra effort on the appraiser’s part. |
| Number of local comps | If the home is isolated or has unusual features and there are few similar properties nearby, the appraiser might charge more for the additional time it will take to evaluate. |
| Seasonal conditions | You might be charged more at specific times of year if conditions (for example, deep snow) make it more challenging for the appraiser to access the property. |
| Loan type | The cost of an appraisal may also depend on the type of mortgage loan involved: Evaluations for government-backed loans (like those from the VA or FHA) may cost a bit more than those for conventional loans. |
Who pays for a home appraisal?
In a real estate transaction, the appraisal is typically ordered by the lender and paid for by the homebuyer — or by the refinancing homeowner. It’s one of a real estate transaction’s many closing costs.
But if you’re a homeowner and you want an appraisal to determine your home’s value before listing it, the price of the appraisal would fall to you.
Who chooses the appraiser?
Under federal regulations, neither the buyer nor the seller can choose the appraiser themselves. The lender is also prohibited from having a relationship with the appraiser and must hire this individual through a third party. This helps ensure a fair, unbiased valuation of the home.
“Since the 2008 financial crisis, regulations like the Dodd-Frank Act mandate that appraisers be hired through third-party management companies to prevent conflicts of interest,” says Nancy Kowalik, owner of Your Home Sold Guaranteed Realty in New Jersey. “This ensures that neither the buyer, seller, nor lender can influence the appraisal process, safeguarding fair market valuations.”
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