How Much Does a Home Appraisal Cost? A 2024 Guide to Fees, Factors, and Who Pays

A home appraisal typically costs around $400, but the final fee is influenced by your loan type, property characteristics, and location. While the buyer is usually responsible for this fee, it can sometimes be negotiated with the seller. Understanding the factors that determine the appraisal cost is crucial for an accurate home-buying budget.

An appraisal is a professional, unbiased assessment of a property's market value, ordered by a mortgage lender to ensure the loan amount does not exceed the home's worth. This protects both the buyer from overpaying and the lender from over-lending.

Who Pays for the Home Appraisal?

The buyer is typically responsible for paying the appraisal fee at closing. This cost is part of the mortgage loan's closing costs. However, this is a negotiable item. A buyer can request that the seller cover the appraisal cost as part of seller concessions, which are terms negotiated during the offer contract period.

What Is the Average Cost of a Home Appraisal?

The national average for a standard, single-family home appraisal is approximately $400. However, market demand and inflation have caused prices to rise in certain regions. Based on industry data from the last two years, appraisal costs can vary significantly by state.

What Factors Influence the Home Appraisal Cost?

Several key elements determine your final appraisal fee. The primary factors are detailed below.

1. Your Mortgage Loan Type Government-backed loans often require more comprehensive appraisal reports, leading to higher costs compared to conventional loans.

• Conventional Loans: Appraisals average around $400. The process is generally straightforward.
• FHA Loans: FHA appraisals cost slightly more, as the U.S. Department of Housing and Urban Development (HUD) mandates specific property condition standards. Fees must be "customary and reasonable" for the area.
• VA Loans: Appraisals for VA loans range from $550 to $1,500, with an average of $732. The Department of Veterans Affairs sets regional cost limits.
• USDA Loans: For single-family homes using a USDA direct loan, the appraisal cost is a flat fee of $750, as established by the U.S. Department of Agriculture.

2. The Type and Scope of the Appraisal Lenders order different types of property valuations based on the loan program and situation. A full, traditional appraisal is most common for home purchases.

• Desktop Appraisal: An appraiser uses public records without a physical inspection. Cost: $75 - $200.
• Drive-by Appraisal: Includes an exterior visual assessment only. Cost: $100 - $150.
• Hybrid Appraisal: One professional inspects the home and another analyzes the data. Cost: $250 - $375.

3. Property Characteristics The physical attributes of the property directly impact the appraiser's time and effort.

• Home Type: Appraisals for manufactured homes and multi-family properties are often more expensive than for single-family homes or condominiums.
• Square Footage and Lot Size: Larger homes and lots are more time-consuming to evaluate, leading to higher fees.
• Condition: A well-maintained home is typically quicker to appraise. Unique, older, or poorly maintained properties may require more research, increasing the cost.

4. Location and Market Conditions Geographic location influences cost in two ways: travel time for the appraiser and local market demand.

• Travel Distance: In rural areas, appraisers may charge more due to longer travel times.
• Market Demand: In high-demand real estate markets, appraisal fees can be higher due to increased workload for appraisers.
• Availability of Comparables: Comparables (or "comps") are recently sold, similar properties used to determine value. In rural areas or for unique properties, finding accurate comps is more challenging, which can increase the appraisal time and cost.

To budget accurately for your home purchase, obtain a fee estimate from your lender early in the process. Remember that while the appraisal is a required cost, its parameters are often negotiable between the buyer and seller during the offer stage.