To get your home appraised, you hire a state-licensed or state-certified appraiser who inspects the property, pulls recent comparable sales, and delivers a written opinion of market value. For a mortgage, your lender orders the appraisal and you pay the fee, typically $300 to $500 for a standard single-family home. The whole process usually takes one to three weeks from scheduling to final report.
When an Appraisal Is Required
A lender will almost always require an appraisal before funding a mortgage. The report tells the lender whether the home is worth enough to serve as collateral, so that if the loan defaults and the property is foreclosed on, the outstanding balance can be recovered. That is the entire purpose of the exercise from the lender’s side.
Not every mortgage needs a full appraisal. Federal regulators raised the threshold in 2019, so residential real estate loans below $400,000 may qualify for a less rigorous evaluation instead of a formal appraisal, provided the lender determines the evaluation is consistent with safe and sound banking practices.1FDIC. New Appraisal Threshold for Residential Real Estate Loans In practice, many lenders still order full appraisals below that threshold because they sell loans to investors like Fannie Mae, which has its own valuation requirements.
Outside of lending, people get appraisals for estate settlements, divorce proceedings, property tax appeals, and private sales where both sides want an independent opinion. You can order one any time; the cost comes out of your own pocket rather than getting rolled into a mortgage closing.
Who Picks the Appraiser
If you’re getting a mortgage, you don’t choose. Federal law prohibits borrowers from selecting their own appraiser for federally related transactions, and lenders must keep the appraisal process independent from anyone with a financial stake in the loan closing.2Federal Reserve. Frequently Asked Questions on the Appraisal Regulations and the Interagency Appraisal and Evaluation Guidelines Most lenders use an Appraisal Management Company to assign appraisers on a rotating basis, which puts distance between loan officers and the valuation.
Appraisers carry either a state license or a state certification. Licensed appraisers can handle non-complex residential properties. Certified appraisers hold higher credentials and are required for transactions valued at $1,000,000 or more, as well as complex residential appraisals above $400,000.3eCFR. 12 CFR 34.43 – Appraisals Required; Transactions Requiring a State Certified or Licensed Appraiser You can verify anyone’s credential through the Appraisal Subcommittee’s National Registry.4ASC gov. National Registries Every appraiser working a federally related transaction must follow the Uniform Standards of Professional Appraisal Practice.5The Appraisal Foundation. USPAP – Uniform Standards of Professional Appraisal Practice
For a private appraisal unrelated to a mortgage, you do pick the appraiser yourself. Look for someone with recent experience in your neighborhood. An appraiser who regularly works your area knows which comparable sales are most relevant and can spot local pricing trends an outsider might miss.
What It Costs and Who Pays
A standard appraisal for a single-family home generally runs $300 to $500. Prices climb for properties that are unusually large, in rural areas with few comparable sales, or involve complex ownership structures like co-ops.
In a purchase, the buyer almost always pays. Some lenders collect the fee upfront when the appraisal is ordered; others fold it into closing costs. Either way, you owe it even if the loan falls through. For refinances, the homeowner pays. For a private appraisal, you pay the appraiser directly.
Documents to Have Ready
Organized records help the appraiser work faster and produce a more accurate report. Pull these together before the inspection:
- A list of significant upgrades with approximate dates and costs. Roof replacements, HVAC systems, kitchen remodels, and bathroom renovations are the ones that most commonly affect value.
- A property survey or blueprints, which help verify lot boundaries, structural layout, and finished square footage. If you added a room or converted a garage, the original plans show what changed.
- Recent tax bills, which confirm assessed value, lot size, and any tax exemptions.
- HOA information, if applicable, including monthly dues and any special assessments.
Missing renovation records are one of the most common reasons appraisals take longer than expected.
Preparing the Property
The appraiser needs to see and access every part of the home, so clear a path to utility rooms, the attic, crawl spaces, and the basement. You can’t get credit for finished space the appraiser couldn’t inspect.
Handle minor maintenance before the visit. A dripping faucet or a cracked window won’t tank your appraisal on its own, but multiple deferred-maintenance items signal neglect, and the appraiser will note the home’s overall condition. You don’t need to repaint the whole house. Fix what’s visibly broken.
FHA loans carry an extra layer. FHA appraisers evaluate the property against health, safety, and structural-soundness standards. Common items that trigger required repairs include chipped or peeling paint in homes built before 1978, exposed electrical wiring, missing handrails on stairs, and non-functional utilities like water or heating systems.6HUD Archives. HOC Reference Guide Repair Conditions Addressing these before the inspection avoids a required-repairs addendum.
The Inspection
The physical inspection for a typical single-family home takes about 30 to 60 minutes. Larger or more complex properties can run two to three hours. The appraiser measures the exterior and interior to calculate gross living area, photographs every room and the outside of the home, and examines structural elements like the foundation, roof, and siding. They note the quality of materials, the overall condition, and any features that add or subtract value.
This is not a home inspection. The appraiser won’t test appliances, run the HVAC through its cycles, or crawl through ductwork. If something isn’t working, they’ll note it as deferred maintenance and factor it into the valuation, but they won’t diagnose the problem.6HUD Archives. HOC Reference Guide Repair Conditions
When an Appraiser Won’t Visit the Property
Not every appraisal involves a walkthrough. Fannie Mae allows hybrid appraisals, where a trained third party such as a real estate agent or inspector collects the property data on-site and the appraiser completes the valuation remotely using that data along with public records and comparable sales.7Fannie Mae. Hybrid Appraisals Desktop appraisals skip the property visit entirely. Your lender’s automated underwriting system decides which option is available. These alternatives are more common for refinances and lower-risk purchase transactions and can shave days off the timeline.
How the Value Is Determined
After the inspection, the appraiser applies the sales comparison approach, the standard method for residential properties. They identify recently sold homes nearby that are similar in size, age, condition, and features. Fannie Mae requires a minimum of three closed comparable sales in the report.8Fannie Mae. Comparable Sales
No two homes are identical, so the appraiser makes dollar adjustments for differences. If a comparable property has one more bathroom than yours, the appraiser subtracts value from that comp. If your home has a two-car garage and the comp has a one-car, the appraiser adds value to the comp. The adjusted prices of the comparables converge on a final opinion of value.
Neighborhood expertise matters here. An appraiser unfamiliar with the area might pull comps from a different school district or miss that a nearby sale closed below market because it was distressed.
Getting the Report
The completed report typically arrives seven to ten days after the on-site inspection. For mortgage transactions, federal regulations require the lender to give you a copy promptly after it’s finished, or at least three business days before closing, whichever comes first.9eCFR. 12 CFR 1002.14 – Rules on Providing Appraisals and Other Valuations If the loan doesn’t close, the lender must still provide the appraisal within 30 days.
Don’t skip to the final number. Check the basics first: square footage, bedroom and bathroom count, lot size, and whether the appraiser noted your improvements correctly. Factual errors in these fields directly affect the value conclusion and are the easiest to correct. Then review the comparable sales. If you know the neighborhood, you may spot a comp that sold under unusual circumstances or a better one the appraiser missed.
If the Appraisal Comes In Low
A low appraisal happens more often than people expect, especially in fast-moving markets where contract prices outpace recent sales data. When the appraised value falls below the agreed purchase price, the lender will only finance based on the lower figure. Someone has to cover the gap.
Your options:
- Negotiate a lower price. Many sellers will reduce the contract price to match the appraised value rather than lose the deal and start over.
- Pay the difference in cash. If you have the funds and still believe the home is worth the contract price, you can bring extra cash to closing.
- Split the difference. Buyer and seller each absorb part of the gap.
- Request a reconsideration of value. If you believe the appraisal contains errors or missed better comparable sales, ask your lender to submit a formal request to the appraiser. The lender acts as the intermediary; you don’t talk to the appraiser directly.
- Walk away. If your purchase contract includes an appraisal contingency, you can cancel and get your earnest money back. Without that contingency, walking away likely means forfeiting your deposit.
Making a Reconsideration of Value Work
A reconsideration only works with concrete evidence. Vague disagreements won’t move the number. Identify specific issues: a comp the appraiser used that was a distressed sale, a stronger comp the appraiser overlooked, or factual errors like wrong square footage or a missing renovation. Submit the evidence to your lender in writing, including the property address, the appraiser’s name, and a clear explanation of what you’re contesting. The lender forwards the information to the appraiser, who decides whether the new data warrants a revised value. Clear factual errors almost always get corrected. Genuinely superior comps can shift the number.
Why the Appraisal Contingency Matters
An appraisal contingency is a clause in the purchase contract that lets you back out without penalty if the home appraises below the contract price. In competitive markets, buyers sometimes waive it to make offers more attractive. That leaves you on the hook for the full contract price even if the appraisal doesn’t support it. If you can’t cover the cash difference and the seller won’t budge, you could lose your earnest money deposit. For most buyers, keeping the contingency is the safer move unless you have enough cash reserves to absorb a gap.