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A real estate appraiser is a licensed professional who provides an independent opinion of a property’s market value. Appraisals are required for most mortgage transactions and serve various other purposes including tax appeals, estate settlement, and divorce proceedings. Appraisers must be licensed or certified by their state and follow Uniform Standards of Professional Appraisal Practice (USPAP).

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What This Section Covers

Types of Appraisals

Purchase, refinance, FHA, VA, estate, and specialty appraisals

The Appraisal Process

What happens during an appraisal and how values are determined

Understanding the Report

Reading appraisal reports and what the numbers mean

Appraisal vs Other Valuations

How appraisals differ from CMAs, AVMs, and assessments

When Appraisals Come in Low

Options when appraised value is below purchase price

Comparing Appraisers

Questions to ask and what to look for

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Why Appraisals Matter

Mortgage lenders require appraisals to confirm the property is worth at least the loan amount. The property serves as collateral for the loan.If the appraisal comes in low, the lender may not approve the full loan amount requested.
Appraisals help buyers avoid overpaying for a property. An independent valuation provides objective confirmation that the purchase price is reasonable for the market.
Beyond purchases, appraisals may be required for:
  • Refinancing
  • Home equity loans
  • PMI removal
  • Estate settlement
  • Divorce proceedings
  • Property tax appeals
  • Bankruptcy filings

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How Appraisers Determine Value

Most common method for residential properties. The appraiser identifies recently sold properties similar to the subject property and adjusts for differences.Adjustments account for differences in size, features, condition, location, and sale date.
Estimates what it would cost to replace the property. Calculates land value plus construction cost minus depreciation.Often used for new construction or unique properties with few comparables.
Used for investment properties. Calculates value based on the income the property generates.Considers rental income, operating expenses, and capitalization rates.

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Cost and Timeline

Property TypeTypical Cost
Single-family home$300 - $500
Condo$400 - $750
Multi-family (2-4 units)$600 - $1,500
FHA appraisal$400 - $700
VA appraisal$425 - $1,200
Vacant land (residential lot)$200 - $1,000
Drive-by/desktop appraisal$100 - $150
National average for single-family home: approximately $350 - $400.Costs vary significantly by state. Appraisals average 300 in states like Kentucky and Georgia, and $550 - $625+ in states like New Jersey, Washington, and New York.
  • Property size and complexity
  • Property type
  • Location and local market
  • Loan type (conventional, FHA, VA)
  • Availability of comparable sales
  • Rural vs urban location
  • Unique features requiring additional research
  • Scheduling: 1 to 7 days depending on market
  • Property visit: 30 minutes to 2 hours
  • Report delivery: 3 to 10 business days
  • Total process: 1 to 2 weeks typical
Busy markets and complex properties take longer.
Costs vary significantly by location, property type, and market conditions. These figures represent national averages as of 2024-2025. Get multiple quotes to understand actual costs in your area.

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Who Pays for the Appraisal

The buyer typically pays for the appraisal as part of closing costs. The fee is usually collected upfront when the appraisal is ordered.Sellers may pay for a pre-listing appraisal if they choose to get one.
The homeowner pays for the appraisal. The fee may be collected upfront or rolled into closing costs.
The party requesting the appraisal typically pays:
  • Estate appraisals: Estate or heirs
  • Divorce appraisals: One or both parties
  • Tax appeal appraisals: Property owner
  • PMI removal: Homeowner

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Who Selects the Appraiser

Federal regulations require lender independence in appraiser selection. Borrowers cannot choose their own appraiser for mortgage transactions.Most lenders use Appraisal Management Companies (AMCs) to assign appraisers. This prevents improper influence on valuations.
For appraisals not tied to mortgage lending, property owners can select their own appraiser.This includes estate appraisals, divorce appraisals, tax appeals, and pre-listing appraisals.

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Appraiser Licensing

Trainee: Working under supervision of licensed appraiser.Licensed Residential: Can appraise non-complex properties up to $1,000,000.Certified Residential: Can appraise any residential property regardless of value or complexity.Certified General: Can appraise all property types including commercial.
Appraisers must:
  • Complete education requirements
  • Pass state examination
  • Complete supervised experience hours
  • Maintain continuing education
  • Follow USPAP standards
  • Carry errors and omissions insurance
Verify appraiser credentials through:
  • State appraiser regulatory board
  • Appraisal Subcommittee National Registry
  • Professional association membership (if applicable)

Find Appraisers

Research licensed appraisers in your area.