Yes, in almost every case you have to pay for an appraisal when you take out a mortgage. The borrower covers the fee on both home purchases and refinances, and a standard single-family appraisal typically runs $300 to $600. The lender orders the report to confirm the property is worth enough to back the loan, then passes the cost to you.
Who Pays in Each Situation
Buying a Home
The buyer pays the appraisal fee on a standard home purchase. This is true for conventional, FHA, and VA loans, though VA treats the appraisal as a negotiable closing cost, so you and the seller can agree on who covers it.1Veterans Affairs. VA Funding Fee and Loan Closing Costs
Refinancing
When you refinance, you also pay for the appraisal. The lender needs a current valuation to confirm the home supports the new loan terms, and the fee is collected the same way as on a purchase.
Pre-Listing Appraisals by Sellers
Sellers sometimes order and pay for a pre-listing appraisal to help price the home. That report is optional and does not replace the lender-ordered appraisal a buyer’s loan will trigger later.
Estate and Probate
If an appraisal is done as part of settling an estate, the estate itself pays. The personal representative uses estate funds to cover appraisal costs alongside other administration expenses before beneficiaries receive anything.
How Much an Appraisal Costs
Budget $300 to $600 for a standard single-family home. Several things move the price:
- Property complexity. Multi-unit buildings, large acreage, or homes with unusual features take more work and can push the fee past $1,000.
- Location. High-demand urban markets and remote rural areas both tend to cost more. Rural appraisals may add a mileage surcharge when the appraiser travels a long distance.
- Appraisal type. A desktop appraisal, where the appraiser works from public records and data models without visiting, typically runs $150 to $300. A hybrid appraisal, which pairs a third-party inspection with a remote valuation, usually falls between a desktop and a traditional in-person appraisal.
- Rush orders. Expedited timelines carry a surcharge that varies by market.
The number you see on your paperwork may bundle the appraiser’s fee with an administrative fee from an appraisal management company, the firm lenders use to hire and coordinate appraisers. That can make it hard to see how much the appraiser alone receives. The fee itself appears on your Loan Estimate under “Services You Cannot Shop For,” meaning the lender picks the provider and you cannot comparison-shop for a different one.2eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions
When and How You Pay
Most lenders collect the appraisal fee upfront, shortly after you submit your application and sign initial disclosures. You typically hand over a credit card number or write a check. Lenders collect early because the appraiser gets paid whether or not your loan closes.
Once the appraiser has inspected the property, the fee is generally non-refundable. The work is done. If you cancel before the inspection happens, some lenders will refund it, but that depends on the lender’s policy, not a federal rule.
Some lenders will let you roll the appraisal fee into your total closing costs so you pay at settlement instead of out of pocket when the appraisal is ordered. This usually requires lender approval and is not available on every loan program.
Ways to Reduce or Avoid the Fee
Ask the Seller to Pay
You can negotiate for the seller to cover closing costs, including the appraisal. On conventional loans backed by Fannie Mae, the cap depends on your down payment: up to 3 percent of the sale price with less than 10 percent down, up to 6 percent with 10 to 25 percent down, and up to 9 percent with more than 25 percent down.3Fannie Mae. Interested Party Contributions (IPCs) FHA caps seller concessions at 6 percent of the sale price.4U.S. Department of Housing and Urban Development. Mortgage Insurance for Disaster Victims Section 203(h)
Lender Credits
Some lenders offer credits that cover part or all of your closing costs, including the appraisal, in exchange for a slightly higher interest rate. That trades upfront cash for a larger total cost over the life of the loan, so it makes more sense when you plan to refinance or sell within a few years.
Appraisal Waivers
Fannie Mae and Freddie Mac sometimes waive the appraisal requirement entirely, which saves you the full fee. Freddie Mac’s Automated Collateral Evaluation uses proprietary models, historical data, and public records to assess collateral risk without a traditional report.5Freddie Mac Single-Family. Automated Collateral Evaluation (ACE) Fannie Mae’s equivalent, called value acceptance, runs through its automated underwriting system.
Not every loan qualifies. Waivers are generally unavailable for multi-unit properties, co-ops, manufactured homes, new construction, properties valued at $1 million or more, and manually underwritten loans, among other exclusions.6Fannie Mae. Value Acceptance The lender’s automated underwriting decides eligibility; you cannot request a waiver on your own.
Desktop or Hybrid Appraisals
If a full waiver is not available, your loan may still qualify for a desktop or hybrid appraisal. Desktops skip the in-person inspection and are available for one-unit properties like single-family homes and condos valued under $1 million. Hybrids pair a third-party inspection with a remote valuation by a licensed appraiser. Either can save roughly $100 to $300 versus a traditional appraisal.
You Get a Free Copy of the Report
Even though you pay for the appraisal, you are entitled to a free copy of every appraisal or written valuation the lender develops for your application. The lender must deliver it promptly after completion or at least three business days before closing, whichever comes first, and cannot charge a separate fee for the copy. You get it whether the loan is approved, denied, or withdrawn.7eCFR. 12 CFR 1002.14 – Rules on Providing Appraisals and Other Valuations
Keep it. If the deal falls apart and you apply with a different lender later, some lenders accept a transferred appraisal, which can spare you a new fee. The new lender is not required to accept it, but having the copy in hand gives you the option to ask.
If the Appraisal Comes in Low
A low appraisal can put your deal at risk because the lender will not finance more than the property is worth. If you think the number is wrong, you can request a reconsideration of value through your lender. This is a formal process for flagging factual errors, missing information, or comparable sales the appraiser overlooked.8Consumer Financial Protection Bureau. Mortgage Borrowers Can Challenge Inaccurate Appraisals Through the Reconsideration of Value Process
Contact your lender to ask how their reconsideration process works, then gather evidence: recent comparable sales the appraiser did not use, documentation of upgrades or features that were missed, or errors in the report. The lender reviews the request and decides whether the value should change. Lenders must make the process available to all borrowers on a nondiscriminatory basis.
If the number does not move, you can renegotiate the price with the seller, bring extra cash to cover the gap, or walk away if your contract includes an appraisal contingency.