Buying a home comes with unexpected costs, and the mortgage appraisal is one that catches many buyers off guard. While it is a crucial step in securing your loan, the $300–$600 price tag (or more for larger properties) can feel like just another fee stacked on top of your down payment and closing costs.

But understanding what you are paying for, and why, can help you budget smarter and potentially save money. In this comprehensive guide, we break down everything you need to know about mortgage appraisal costs, from average pricing to factors that influence the final bill.

What Is a Mortgage Appraisal?

A mortgage appraisal is an unbiased professional assessment of a property’s market value. When you apply for a mortgage, your lender requires an appraisal to ensure the home is worth the amount you are borrowing. This protects the lender from lending more money than the property is worth.

During an appraisal, a licensed appraiser visits the property, examines its condition, measures the square footage, and compares it to recently sold homes in the area. They then provide a detailed report with their professional opinion of the home’s current market value.

Home Appraisal vs. Home Inspection: What Is the Difference?

Many first time homebuyers confuse appraisals with home inspections, but they serve completely different purposes. You typically need both when buying a home.

Feature	Appraisal	Home Inspection
Primary Goal	Determine market value	Determine property condition
Client	The lender (bank)	The buyer
Focus	Comparable sales, location, square footage	Safety issues, structural integrity, systems (HVAC, plumbing)
Outcome	A dollar value (for example, “$450,000”)	A list of repairs and defects

Average Mortgage Appraisal Cost in 2025

The cost of a mortgage appraisal varies based on several factors, but most homebuyers can expect to pay between $300 and $600 for a standard single family home appraisal.

Cost by Property Type

The size and nature of the property are the biggest cost drivers.

Property Type	Estimated Cost	Why?
Small Home (< 1,500 sq ft)	$300 – $400	Quick to measure and inspect.
Medium Home (1,500–2,500 sq ft)	$400 – $500	Standard workload.
Large Home (2,500–3,500 sq ft)	$500 – $650	Requires more time to measure.
Duplex (2 units)	$600 – $800	Requires rental income analysis.
Fourplex (4 units)	$1,000 – $1,500	Complex multi unit analysis.

Luxury and Complex Properties

High value homes or those with unique features require senior appraisers with specialized expertise, which drives up the cost.

• Luxury homes ($1M+): $800 – $2,000
• Historic properties: $750 – $1,500
• Properties with acreage: $600 – $1,200

Cost by Region

Where you live dramatically impacts the price. High cost of living areas have higher operating costs for appraisers.

• High cost (SF Bay Area, NY Metro, Seattle): $450 – $900
• Moderate cost (Phoenix, Denver, Chicago): $375 – $600
• Lower cost (rural Midwest, Southern states): $275 – $475

Factors That Affect Mortgage Appraisal Cost

Several key factors determine what you will pay for your home appraisal. Understanding these can help you anticipate costs and avoid surprises.

Property Size and Type

Square Footage

Larger homes take more time to measure, inspect and analyze. Appraisers typically charge more for homes over 3,000 square feet because they require additional time and effort.

Single Family vs. Multi Family

• Single family homes are usually more straightforward to appraise.
• Multi family properties (such as duplexes or fourplexes) require analysis of:
  • Rental income potential
  • Separate units
  • More complex valuation methods

Because of this, multi family appraisals are often significantly more expensive than single family appraisals.

Condo vs. Single Family Home

Condos can be either cheaper or more expensive to appraise, depending on the situation:

• In buildings with many recent sales, condo appraisals may cost less because comparable data is easy to find.
• In buildings with few sales or unique features, the appraiser may need to spend more time on research, which can increase the cost.

Property Location

Urban vs. Rural Areas

Rural properties often cost more to appraise because:

• Fewer comparable sales are available
• Appraisers must travel farther
• Properties may sit on larger lots
• Unique features are more common

Urban properties typically have abundant comparable sales data and are closer together, which makes the appraisal process more efficient.

Geographic Region

High cost of living areas usually have higher appraisal fees because appraisers’ operating costs are higher. For example, an appraiser in San Francisco has higher overhead than one in rural Kansas, and those higher costs are reflected in the appraisal fee.

Travel Distance

If your property is far from the appraiser’s office or in a remote location, you may be charged a travel fee in addition to the standard appraisal cost. This can add roughly $50–$200 to your final bill.

Custom/Unique Properties

Unique Features or Custom Construction

Homes with unusual designs or custom features require more research and expertise to value accurately. Examples include:

• Custom architectural designs
• Unusual building materials
• Non traditional layouts
• High end custom finishes

These properties often fall outside typical comparable sales, so the appraiser must spend more time on analysis, which increases cost.

Historic Homes

Historic homes present special challenges:

• Modern comparable sales may not exist or may not reflect the value of historic features
• The appraiser must understand the market value of original details and restorations
• Historic designation can bring restrictions that affect value

Because of this added complexity, historic home appraisals are often more expensive.

Properties With Acreage

Land adds both complexity and value that require separate analysis. Properties with more than one acre typically cost more to appraise, and fees tend to increase as acreage increases, especially when:

• The land has multiple potential uses
• There are outbuildings, barns or additional structures
• Topography or access issues affect value

Who Pays for the Mortgage Appraisal?

In most purchase transactions, the buyer pays for the mortgage appraisal. The lender is the one who orders the appraisal, but the cost is passed along to you as part of your closing costs.

In some cases, especially in a buyer’s market, the seller may agree to cover some or all of the buyer’s closing costs as a concession. When that happens, the seller is effectively paying for the appraisal, even though it is still ordered by the lender.

If you are refinancing your home, you as the homeowner are typically responsible for the appraisal fee. Since there is no buyer or seller involved, the cost is almost always paid directly by the person refinancing the loan.

Standard Mortgage Appraisal Cost vs. Other Appraisal Types

Not all appraisals are created equal. Different situations require different levels of detail and different types of reports.

Appraisal Type	Average Cost	Turnaround	When Used
Standard Mortgage	$300 – $600	7–10 days	Traditional purchases and refinances.
FHA Appraisal	$350 – $700	7–10 days	FHA loans, includes basic safety checks.
VA Appraisal	$450 – $800	7–14 days	VA loans, includes minimum property requirements (MPR).
Desktop Appraisal	$150 – $350	2–3 days	Low risk refinances, no site visit.
Drive by Appraisal	$150 – $250	2–4 days	Exterior only, used for some HELOCs.

What Is Included in a Mortgage Appraisal?

Understanding the process helps justify the cost. It is more than just a quick walkthrough.

1. Physical Inspection (30–60 minutes): The appraiser measures the home, checks the condition of the roof, siding and foundation, and notes upgrades (such as granite counters or new floors) or defects (such as peeling paint or broken windows).
2. Comparable Sales Analysis: The appraiser researches three to six similar homes (“comps”) sold nearby in the last six months.
3. The Report: You receive a report, often 25 or more pages, that includes specific measurements, photos of your home and the comps, and the final market value opinion.

What If the Appraisal Comes in Low?

Sometimes appraisals come in below the purchase price, which can create challenges and may lead to additional costs for the buyer. This is one of the most common fears buyers have. For example, if you offer 450,000 dollars but the appraiser says the home is only worth 430,000 dollars, an “appraisal gap” is created.

If this happens, you have four main options:

1. Renegotiate: Ask the seller to lower the price to the appraised value.
2. Pay the Gap: Bring extra cash to closing to cover the difference. The lender will not cover this portion.
3. Challenge the Appraisal: Provide better comparable sales data to the lender and request a reconsideration of value.
4. Walk Away: If you have an appraisal contingency in your contract, you can cancel the deal and get your earnest money back.

FAQs

Is a Mortgage Appraisal Tax Deductible?

Generally, no. For a primary residence, it is treated as a closing cost and is not deductible. However, it may be deductible for investment or rental properties as part of your business expenses. Always consult a tax professional for guidance on your specific situation.

Can I Use an Old Appraisal?

Appraisals expire. They are typically valid for 90–120 days for purchases. After that, you may need a new appraisal or an “update,” which can sometimes cost less than a full new appraisal.

Do I Get a Refund If My Loan Does Not Close?

No. The appraiser is paid for their time and work, regardless of whether the loan closes or the deal goes through.

Can I Choose My Own Appraiser?

No. To prevent fraud and maintain independence, federal regulations require the lender or an appraisal management company to choose an independent third party appraiser. You cannot hire your friend or relative to perform the mortgage appraisal.

Conclusion

For most buyers, a typical mortgage appraisal for a standard single family home will cost somewhere between $300 and $600, with higher fees for larger, luxury, rural or multi unit properties. Knowing this range helps you set realistic expectations and avoid surprise charges as you move through the loan process.

The exact price you pay will depend on several factors: the size and complexity of the property, your location, the type of loan you are using, and how busy the appraisal market is at the time you order it. Historic homes, properties with acreage, FHA or VA loans, and rush requests often sit at the higher end of the pricing spectrum.

Because every lender and local market is different, the best way to know what your appraisal will cost is to ask your lender directly. Request a detailed loan estimate, review the appraisal fee line item, and ask whether an appraisal waiver, desktop appraisal or lower cost option might be available for your situation. This simple step ensures you understand the exact fees upfront and can budget with confidence.