How Much Does a Home Appraisal Cost?

2. Average Appraisal Fees

a. MAI Appraisal Cost

MAI appraisals, often reserved for commercial properties, cost between $2,000 to $10,000. MAI stands for Member of the Appraisal Institute and any appraiser holding an MAI designation has the equivalent of a doctorate in appraising properties.

3. Appraisal Cost by Home Type

a. Residential House Assessment Price

A residential home’s appraisal fees range from $300 to $500 depending on the type of loan, the location of the home and the condition of the building. Expect to pay slightly more in urban areas. But rural areas may have high costs too if the appraisal has a lack of good comparable properties or other unusual circumstances.

b. Farm and Land Appraisal Prices

Land appraisals cost $1,000 to $3,000 on average with some reports of $8,000 or more. They’re much harder to appraise than a home with more variables. Most pros use one of three methods:

• Cost

• Sales Comparison

• Income Approach

c. Average Condo Appraisal Cost

A condo, being a single-family home, costs $300 to $500 to appraise. It’s no different than a standard home. However, because it’s often surrounded by plenty of comparable properties, values tend to be a little easier to find.

4. Home Appraisal Costs Near You

5. Home Appraisal Cost Factors

The cost of your home appraisal may be affected by factors like:

• Size of the house: A larger home will take your appraiser longer to evaluate.

• Local cost of living: An appraisal will cost more in an expensive city than in a smaller town.

• Damage to the house: A damaged home takes more effort to determine the fair value.

• Lack of nearby comparable homes: Appraisers compare your house to similar nearby homes to form a baseline for their estimate. If there are no comparable houses, it'll take more time to evaluate.

6. Why Do I Need an Appraisal?

If you’re buying a house with a mortgage, your lender or the laws governing mortgages require an appraisal. All FHA loans require an appraisal. There are a few other reasons you may need one.

• Determining what to sell your home for.

• Making sure you’re not overpaying for a property.

• Determining gift value to a relative.

• Determining estate values.

7. Who Pays the Appraisal Fee?

The buyer usually pays the appraisal fee in a real estate transaction. If you’re a homeowner looking to find out the value for any other reason than selling, you’ll pay it.

8. Home Appraisal vs. Home Inspection

Home appraisals and home inspections are both important, but they're not the same thing. A home inspection protects the buyer by making him aware of any structural defects in the home. The home appraisal, on the other hand, protects the financial institution from lending more money than the home is worth. Different professionals offer these services but it’s not uncommon for an appraiser to offer both.

9. FAQs

a. How much is a bathroom worth on an appraisal?

You can estimate a bathroom addition’s value between 10% to 20% of a home’s value. But this also accounts for extra square footage since homes with more bathrooms tend to have more space. When considering adding, you should know that a bathroom generally adds only $5,000 to an appraisal price initially, with adjustments made for other factors like local home values.

b.How much is a garage worth in an assessment?

Garages tend to increase a property’s value by about 80% of the build price. However, on an appraisal, a garage contributes to the whole rather than as a part. For example, if you have a garage, your appraiser then tries to compare it to nearby homes with garages, which often have a higher value.

c. How much is the value of a bedroom in an average appraisal?

A bedroom can add anywhere from $10,000 to $25,000 or more to an appraisal. It depends heavily on the size of the bedroom, the overall home’s value, the location and what amenities might be included (like a walk-in closet).

d. How do I get the highest appraisal?

Appraisers are busy, so any information (enhancements and what you paid) are usually welcome. If you provide a list, and leave it on the kitchen counter or personally hand it to the appraiser, s/he will most likely use that information to determine the value of your home. For example:

• Installed Level 4 granite in all 3 baths at a cost of $9,000

• New HVAC for $6,500

• Roof replaced for $12,000

• Replaced water heater with tankless water heater for $3,400

Your appraiser will most likely increase the value of your house for 50% or more of these costs.

e. How much does a drive-by appraisal cost?

A drive by appraisal usually costs $100 to $150.

f. How can I get a free appraisal?

The best way to get a free appraisal is to have the other party agree to accept the cost of it. If you have time before you want to sell your house, look into a no-cost home refinance, where the lender pays for all costs, including an appraisal. In most cases, the lender will pay for and give you a copy of the appraisal.

g. How much do FHA appraisals cost?

An FHA appraisal costs $400 to $500.