What Is an Appraisal Fee?

Introduction

The appraisal fee pays for a licensed appraiser to assess the property's market value. Lenders require an appraisal to ensure the loan amount does not exceed what the property is worth. The fee typically appears on your Loan Estimate and Closing Disclosure under "Services You Cannot Shop For."

What the Appraisal Covers

The appraiser inspects the property, compares it to similar sales in the area, and produces a report with an estimated value. The lender uses this to verify that the loan-to-value (LTV) ratio is acceptable. See What Is LTV.

Typical Costs

Appraisal fees vary by property type and location. For a single-family home, expect roughly $300–$600. Condos, multi-unit properties, and jumbo loans may cost more. The fee is usually paid at closing or when the appraisal is ordered.

Frequently Asked Questions

What is an appraisal fee?

The appraisal fee pays for a licensed appraiser to assess the property's market value. Lenders require an appraisal to ensure the loan amount does not exceed the property's worth.

How much does an appraisal cost?

Typical appraisal fees range from about $300 to $600 for a single-family home, depending on property type, location, and complexity. The fee is usually paid at or before closing.

Can I shop for an appraiser?

Usually no. Lenders typically order the appraisal through an appraisal management company (AMC) to maintain independence. The fee is disclosed on your Loan Estimate under "Services You Cannot Shop For."

Is the appraisal fee refundable?

Generally no. If the loan does not close, the appraisal fee is typically non-refundable because the work was already performed.