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Different situations require different types of appraisals. The purpose of the appraisal, the loan program involved, and the intended use of the report determine which type is appropriate. Understanding appraisal types helps property owners and buyers know what to expect.
Appraisal costs vary by location, property type, and loan program. These figures represent national averages as of 2024-2025.

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By Purpose

Required by lenders when financing a home purchase. Confirms the property value supports the loan amount.
  • Ordered by lender after contract acceptance
  • Buyer pays the fee ($300 - $500 typical for conventional)
  • Report sent to lender; buyer receives copy
  • Value must meet or exceed purchase price for full loan approval
Required when refinancing an existing mortgage. Confirms current market value supports the new loan amount.
  • Ordered by lender during refinance process
  • Homeowner pays the fee ($350 - $600 typical)
  • Determines loan-to-value ratio for new loan
  • May qualify for appraisal waiver in some cases
Required for home equity loans or lines of credit (HELOCs). Determines available equity.
  • Similar to refinance appraisal
  • Confirms value supports combined loan amounts
  • Homeowner pays the fee
Used to demonstrate sufficient equity to remove private mortgage insurance.
  • Homeowner requests and pays for appraisal
  • Must show loan-to-value at or below 80%
  • Lender may have specific appraiser requirements
Seller obtains appraisal before listing property for sale.
  • Helps determine appropriate listing price
  • Seller pays the fee
  • Optional but can inform pricing strategy
  • May reduce negotiation after buyer’s appraisal
Determines property value for estate settlement, inheritance, or probate.
  • May need value as of date of death
  • Used for estate tax calculations
  • Used to divide assets among heirs
  • Estate or heirs pay the fee
Establishes property value for equitable distribution in divorce proceedings.
  • Both parties may hire separate appraisers
  • May need current value and/or retrospective value
  • Used in settlement negotiations or court proceedings
  • One or both parties pay
Supports property tax assessment appeal.
  • Must demonstrate assessed value exceeds market value
  • Timing and format requirements vary by jurisdiction
  • Property owner pays the fee
  • May recover cost if appeal successful

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By Loan Program

Standard appraisal for conventional (non-government) loans.
  • Follows Fannie Mae/Freddie Mac guidelines
  • Cost typically $300 - $500
  • Most common residential appraisal type
  • May qualify for appraisal waiver in some refinance situations
Required for Federal Housing Administration loans.Additional requirements beyond conventional:
  • Health and safety inspection
  • Minimum property standards verification
  • Specific deficiency identification
  • Repairs may be required before closing
Cost typically $400 - $700 due to additional requirements.FHA appraisal stays with property for 120 days. If buyer changes, new buyer can use existing appraisal.
Required for Veterans Affairs loans.Additional requirements:
  • Minimum Property Requirements (MPRs)
  • Must be completed by VA-assigned appraiser
  • Notice of Value (NOV) issued
  • More stringent than conventional
Cost typically $425 - $1,200 depending on state. VA sets maximum fees by region.VA appraisal valid for 6 months.
Required for USDA Rural Development loans.Requirements:
  • Property must be in eligible rural area
  • Must meet USDA property standards
  • Similar to FHA requirements
Cost similar to FHA appraisals.

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By Format

Traditional, most comprehensive appraisal type.Process:
  • Appraiser visits property
  • Inspects interior and exterior
  • Measures and photographs
  • Researches comparable sales
  • Prepares detailed report
Required for most purchase transactions and many refinances. Cost typically $300 - $500.
Also called drive-by appraisal. Appraiser views property from street only.Limitations:
  • No interior inspection
  • Relies on public records for interior details
  • Cannot verify condition or updates
Used for some refinances where lender has sufficient data. Cost typically $100 - $150. Lower cost but less thorough.
Completed without visiting the property.Process:
  • Uses MLS data, public records, and photos
  • May use previous appraisal data
  • No physical inspection
Used when lender has high confidence in value and data. Cost typically $75 - $150. Fastest turnaround.
Combines elements of full and desktop appraisals.Process:
  • Third party collects property data and photos
  • Licensed appraiser completes valuation remotely
  • Faster than traditional appraisal
Gaining acceptance but not allowed for all loan types.

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Specialty Appraisals

Valuation of vacant land without improvements.
  • Uses comparable land sales
  • Considers zoning, utilities, access
  • May use subdivision development approach
  • Cost typically $200 - $1,000 for residential lots; more for large acreage
Valuation of property under construction or recently completed.May include:
  • Subject-to-completion appraisal (based on plans)
  • Progress inspections during construction
  • Final appraisal upon completion
Requires appraiser experienced with new construction.
Valuation of 2-4 unit residential properties.
  • Uses both sales comparison and income approaches
  • Considers rental income and expenses
  • More complex than single-family
  • Cost typically $600 - $1,500
Valuation of properties significantly above typical market.
  • Fewer comparable sales available
  • Requires appraiser with luxury market experience
  • May take longer due to research requirements
  • Higher fees due to complexity
Determines value as of a past date.Common uses:
  • Estate settlement (date of death value)
  • Tax matters
  • Legal disputes
  • Insurance claims
Requires research of market conditions at that time.

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Appraisal Waivers

In some cases, lenders may waive the appraisal requirement based on automated valuation models and other data.Eligibility factors:
  • Loan-to-value ratio
  • Borrower credit profile
  • Property type and location
  • Loan amount
  • Transaction type (refinance more common than purchase)
Pros:
  • Faster closing
  • No appraisal fee
  • No property access needed
Cons:
  • No independent value confirmation
  • May miss property condition issues
  • Not available for all transactions
Fannie Mae and Freddie Mac determine waiver eligibility through their automated underwriting systems.Lenders may still require appraisal even if waiver offered. Borrowers can also request appraisal if they want independent value confirmation.

Next: The Appraisal Process

What happens during an appraisal

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