How much does a home appraisal cost? A guide for homebuyers

If you’re buying your first house or refinancing your current mortgage, chances are a home appraisal will be part of the process. This key step pinpoints your property’s value and informs decisions for buyers, sellers, and mortgage lenders alike.

But how much does a home appraisal cost? Read on to learn how home appraisals work, how long they take, and what they cost — so you know what to expect as you move toward closing.

What is an appraisal on a house?

A home appraisal is a professional estimate of your property’s fair market value. It’s performed by a licensed appraiser — an expert trained to assess how much homes are worth by looking at factors like location, condition, and comparable sales in your area (called “comps”).

Home appraisals usually come into play during a purchase or refinance. In both cases, the mortgage lender needs to verify that the home is worth at least as much as the requested loan amount.

An appraisal of a home involves a full evaluation of the property, inside and out. Appraisers investigate the structure, design, features, updates, and anything else that might influence what your home is worth.

Depending on the situation and property type, there are a few different methods appraisers use to value properties:

1. Traditional in-person appraisal: This is the most common option. A licensed home appraiser views the property on-site, gathers data, and compares it to similar sales.

2. Hybrid appraisal: A hybrid appraisal blends virtual and in-person elements. An appraiser reviews documentation like listing photos to perform an initial evaluation, and a third party collects details and photos locally.

3. Desktop appraisal: In this case, the appraiser doesn’t visit the property at all. Instead, they use publicly available data like tax records, MLS listings, and prior appraisal reports to estimate the property’s value.

4. Drive-by appraisal: This is also called an exterior-only appraisal. The appraiser observes the property from the outside and uses online data and comps to complete the evaluation.

Why do you need a home appraisal?

Homeowners looking to refinance usually need to get a new appraisal of the property to confirm its current value.

Appraisals keep everyone on the same page. For buyers, they’re a way to double-check that the home is priced fairly, especially when the market is hot. For lenders, they confirm that the collateral (the home) is worth enough to back the mortgage. Sellers might also order a pre-listing appraisal to set the right price from the beginning and avoid surprises later.

Appraisers aren’t there to flag problems or safety issues — that’s the inspector’s job. The goal of an appraiser is to settle on a reliable valuation that banks, lenders, and everyone else involved in the sale process can trust.

...in as little as 3 minutes – no credit impact

How much do home appraisals cost?

Home appraisal rates typically fall between $300 and $550, depending on where you live and what type of property you have.

Here are some of the main factors that influence home appraisal fees:

— Size of the property: Bigger homes take more time to appraise.

— Location: Appraisers may charge more in rural areas that involve extensive travel or in high-demand urban zones.

— Condition and complexity: Homes with upgrades or that need repairs may require a more detailed analysis.

— Availability of comps: In areas where similar sales are limited, the appraiser has to dig deeper.

— Appraisal turnaround time: Rush jobs may come with extra appraisal fees.

— Loan type: Government-backed mortgages like FHA, VA, or USDA loans require appraisers to follow stricter guidelines, which can lead to higher appraisal costs.

With Better’s AI-powered mortgage solutions, there are no surprises — you see appraisal costs and other fees upfront. The fast, fully digital application takes just 3 minutes.

What factors affect home appraisal costs?

Home appraisers follow a set of guidelines when evaluating properties. They’re trained to assess a variety of factors that can raise or lower the appraised value of the home.

Here’s what typical appraisals of homes are based on:

— Property age and condition

— Interior features like the layout, the number of bedrooms and bathrooms, flooring, lighting, and upgrades

— Exterior features like roofing, foundation, patios, and landscaping

— Structural elements like signs of water damage, mold, pest infestation, or foundation issues

— Property dimensions like overall square footage and lot size

— Distinctive features like fireplaces, custom design elements, and smart home technology

— Recent changes like renovations or additions

— Neighborhood characteristics like school districts, local amenities, and nearby property values

Once the appraiser gathers this information, they compare your property to similar homes sold in your area. If your home is larger or has better curb appeal than the comps, that can push the appraised value higher. If it’s outdated or needs repairs, that could bring it down.

Who pays for a home appraisal?

While lenders order the home property appraisal, the buyer usually pays the fee. You can pay upfront or roll the fees into the closing costs. Occasionally, sellers might agree to cover the appraisal to sweeten the deal for the buyer.

Better’s tech-forward approach uses advanced tools like automated valuation models (AVMs) to help you cut appraisal costs and close faster. If your plans shift, no problem — get a full refund as long as the appraisal hasn’t happened yet.

How long does a home appraisal take?

The appraisal process most often starts with a visit to the home. The appraiser takes measurements, notes the condition, snaps photos, and looks at anything that might affect the home’s value. Depending on the size and layout, this part of the process can take anywhere from 30 minutes to a few hours.

Appraisers typically schedule the visit within 48 hours after the lender places the order, though that can vary based on how busy they are. After the visit, they compare the property to recent local sales, do some research, and pull it all together into an official report. That part can take a few days or weeks, depending on how straightforward or complex the property’s condition is.

Get there faster with Better

An appraisal helps confirm your home’s value, keeping your mortgage or refinance on track. It’s a key step in the process, and knowing what to expect makes it easier to plan, budget, and move forward confidently. 

If you need help choosing the best option for you going forward — whether its buying a new home or refinancing yours — Better can help. You can get pre-approved in as little as 3 minutes and meet with experienced loan officers to find a solution that works for you. 

...in as little as 3 minutes – no credit impact

Frequently asked questions

Can I get a copy of the home appraisal?

Yes, buyers have a legal right to get a copy of the appraisal report. Just ask your lender to provide one.

Can I prepare for a home appraisal?

Yes, and it’s a good idea. A little effort before the appraiser shows up can go a long way in making sure the appraised value reflects your home’s best features. Here’s how to get your home appraisal-ready:

— Clean and declutter each room

— Tidy up the exterior by mowing the lawn, trimming shrubs, and cleaning walkways

— Make small repairs, like fixing leaky faucets, squeaky doors, or chipped paint

— Be available to answer questions or provide context (especially for unusual features)

What can hurt a home appraisal?

Certain issues can drag down the appraised value of your home. Here are some of the most common red flags home appraisers notice:

— Outdated or unfinished renovations

— Signs of water damage or mold

— A cracked foundation or roofing issues

— Poor curb appeal

— Location issues like noisy roads or poorly rated schools

Sometimes appraisal reports contain errors, like incorrect square footage or overlooking recent sales. If the final value seems off, you can ask your lender for a copy and request a revision.

What is an appraisal contingency?

An appraisal contingency is a clause in the purchase agreement that gives the buyer options if the home doesn’t appraise for the full offer price. If the value comes in low, the buyer can either back out and keep their deposit or try to renegotiate the price.

...in as little as 3 minutes – no credit impact