Appraisal Fee
Definition and meaning of Appraisal Fee in real estate.
An appraisal fee is the payment required to hire a licensed professional appraiser to estimate the current market value of a property.
In more detail
Lenders require an independent property appraisal to ensure the home's value justifies the loan amount, protecting the lender from over-financing. The borrower typically pays this fee upfront or at closing, though the appraiser is selected by the lender to maintain independence. The cost is determined by property size, location, complexity, and local market conditions.
This fee is separate from the home inspection fee, which focuses on physical condition rather than market value.
Key facts
| Category | Mortgages & Financing |
|---|---|
| Who pays | Home buyer or borrower |
| Typical cost range | Three hundred to five hundred dollars |
| Paid to | Independent licensed appraiser |
A buyer paid an appraisal fee, typically ranging from three hundred to five hundred dollars, to their lender to confirm the purchase price of the home matched its market value.
Frequently asked questions
Can I choose my own appraiser to save on the appraisal fee?
No, federal regulations require the lender to select the appraiser independently to prevent conflicts of interest.
Is the appraisal fee refundable if the loan does not close?
No, because the appraisal work is completed early in the loan process, the fee is non-refundable once the appraiser visits the property.
Does the seller ever pay the appraisal fee?
Typically the buyer pays, but a seller might agree to credit the fee back to the buyer as part of closing cost concessions.