How much does a home appraisal cost?

A standard home appraisal costs $350-$600, depending on the property and location. Complex properties, rural areas, and FHA/VA loans may cost $500-$800+. The buyer typically pays the appraisal fee as part of closing costs.

What happens if the appraisal comes in low?

If the appraisal is lower than the purchase price, you have four options: (1) renegotiate the price with the seller, (2) pay the difference in cash (appraisal gap coverage), (3) challenge the appraisal with comparable sales data, or (4) walk away (if your contract has an appraisal contingency). About 8% of appraisals come in below the contract price.

Home Appraisal Guide: What to Expect, Costs, and What to Do If It's Low (2026)

A home appraisal is a required step in nearly every mortgage transaction. Understanding the process helps you prepare — and handle problems if they arise.

What Is a Home Appraisal?

Aspect	Details
Purpose	Determine fair market value for the lender
Who orders it	The lender (after loan application)
Who pays	The buyer (typically $350-$600)
Who performs it	Licensed/certified appraiser (independent from lender)
Duration	1-2 hours on site; report in 3-10 business days
Required for	All purchase mortgages and most refinances
Not required for	Cash purchases, some VA streamline refis, waiver-eligible loans

Appraisal Costs

Appraisal Type	Typical Cost	When Used
Standard single-family	$350-$500	Most conventional purchases
FHA appraisal	$400-$550	FHA loans (additional health/safety checks)
VA appraisal	$425-$600	VA loans (set by VA fee schedule)
Rural property	$450-$700	Limited comparable sales
Multi-family (2-4 units)	$500-$800	Investment/multi-family properties
Condo	$350-$500	Additional condo-specific review
Luxury/estate ($1M+)	$600-$1,500	Complex, unique properties
Desktop appraisal	$75-$200	Lender-approved (no physical visit)
Drive-by appraisal	$150-$300	Exterior-only (refinances)

What Appraisers Evaluate

Exterior Assessment

Factor	What They Look At
Lot size and location	Compared to neighborhood
Condition of exterior	Roof, siding, foundation, gutters
Landscaping	General curb appeal
Driveway/garage	Condition and type
Outbuildings	Sheds, barns, pools
Neighborhood	Quality, proximity to amenities, zoning

Interior Assessment

Factor	What They Look At
Square footage	Measured and verified
Room count	Bedrooms, bathrooms, living areas
Kitchen and bathrooms	Condition, updates, functionality
Flooring	Type and condition
HVAC system	Type, age, working condition
Plumbing and electrical	Adequate and functional
Structural integrity	Foundation, walls, ceiling
Basement/attic	Finished vs. unfinished, condition
Safety issues	Smoke detectors, handrails, hazards

Market Analysis (Comparable Sales)

Element	Methodology
3-6 comparable sales (“comps”)	Similar homes sold within 6-12 months
Proximity	Ideally within 1 mile (0.5 mile preferred)
Adjustments	+/- for differences (bedroom count, garage, pool, updates)
Market conditions	Active listings, days on market, trends
Final value opinion	Based on adjusted comparable sales

How to Prepare for an Appraisal

Action	Impact	Priority
Deep clean the entire home	Creates positive impression	High
Complete minor repairs (leaky faucets, chipped paint)	Shows well-maintained home	High
Ensure all systems work (HVAC, lights, appliances)	Appraiser tests these	High
Provide list of improvements with costs and dates	Ensures appraiser accounts for upgrades	High
Mow lawn, trim hedges	Curb appeal matters	Medium
Clear clutter, especially from rooms being measured	Accurate square footage	Medium
Unlock all areas (attic, basement, garage)	Appraiser needs full access	High
Have comparable sales ready (just in case)	Can share with appraiser	Low

What to Do If the Appraisal Comes in Low

About 8% of purchase appraisals come in below the contract price.

Your Options

Option	How It Works	Best When
Renegotiate price	Ask seller to lower price to appraised value	Buyer’s market, seller motivated
Split the difference	Buyer and seller each cover half the gap	Both parties want the deal
Appraisal gap coverage	Buyer pays the difference in cash	Competitive market, strong buyer
Challenge the appraisal	Submit comparable sales to lender for reconsideration	Appraiser missed relevant comps
Request second appraisal	Order a new appraisal (buyer pays again)	First appraisal appears flawed
Walk away	Use appraisal contingency to cancel contract	Gap is too large, better options exist

Appraisal Challenge Process

Step	Action
1	Review the appraisal report for errors (wrong square footage, missing features)
2	Gather 3-5 better comparable sales your appraiser may have missed
3	Submit a Reconsideration of Value (ROV) request to the lender
4	Lender forwards to appraiser for review
5	Appraiser may adjust value, maintain value, or explain reasoning
6	If unsuccessful, consider second appraisal or renegotiation

FHA and VA Appraisal Differences

Requirement	Conventional	FHA	VA
Standard property assessment	✅	✅	✅
Health and safety inspection	❌	✅ (extensive)	✅
Peeling paint must be addressed	No	Yes (if pre-1978 home)	Yes
Handrails on stairs	No requirement	Required	Required
Working utilities required	Preferred	Required	Required
Minimum property standards	No	Yes (HUD standards)	Yes (VA MPRs)
Termite inspection	Not required	Required in some states	Required
“Sticky” value (stays with property)	No	Yes (6 months)	Yes (6 months)
Repair requirements before closing	Rare	Common	Common

Appraisal Waivers

Some loans don’t require a traditional appraisal:

Waiver Type	Requirements	Lender
Automated Appraisal Waiver	Strong LTV, good credit, recent data	Fannie Mae/Freddie Mac
Desktop Appraisal	Appraiser reviews data without visiting	Various
Property Inspection Waiver (PIW)	Fannie Mae’s AVM-based waiver	Fannie Mae
VA IRRRL (refinance)	Streamline refinance, no appraisal	VA
FHA Streamline (refinance)	Streamline refinance, no appraisal	FHA