How Much Does a Home Appraisal Cost?

By Elizabeth Marcant

April 01, 2026

You've made an offer on a home, signed a contract and are underway with the mortgage application. One of the first steps is the home appraisal.

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Why Do People Need a Home Appraisal?

Common reasons people need a home appraisal include:

Buying a home: An appraisal during the home-buying process is typically required by mortgage companies. Lenders want to protect their investment, and they're unlikely to offer a loan above the value of a home.
Refinancing a home: You typically need an appraisal during refi processes for the same reason you need one when purchasing a home. It also helps you understand whether you may have equity you could cash out.
Estate purposes: During estate settlement, an executor might order a home appraisal to help determine how best to distribute assets.
Pre-sales valuation: Sellers sometimes pay for a home appraisal if they want to be sure their asking price will hold up through potential mortgage processes. In this case, the buyer typically still has to get their own appraisal via their lender.

How Much Does It Cost to Have Your Home Appraised?

According to Zillow, the average home appraisal costs $400 (CAD 552), though some appraisal fees are as high as $1,500 (CAD 2071) or more.

What Factors Influence Home Appraisal Prices?

Home appraisal cost depends on factors such as:

Where you live: Areas where the cost of living is higher tend to have higher service fees in general. These higher rates can apply to appraisal costs.
Mortgage type: Appraisals related to conventional loan processes tend to require less documentation than those related to FHA, VA or USDA loans. You may pay more for an appraisal if you're applying for a government-backed mortgage loan.
Appraisal type: Some appraisals involve using publicly available information or curbside assessments of a home. If the appraiser doesn't go inside the home, you'll typically pay less for the appraisal, though the report may not be as accurate or comprehensive.
Home size: Larger properties may take more time to survey, which can increase appraisal costs.

Home condition: Typically, a well-maintained home can be faster to appraise and document, and this might help keep costs in check. In many cases, however, appraisal fees are paid upfront and don't take overall condition into account.

Comp availability: Appraisers use the sales price of similar homes in an area to help them set the value of a particular property. If comps are difficult to find, an appraiser might have to do more research, which could increase fees.

Can You Have Your Home Appraised for Free?

No, comprehensive home appraisals aren't typically free. However, tools like Zillow and services from real estate agents may offer a free estimate of home value. These options provide an estimate based on analysis of market trends and public records about a home and nearby comparable house sales.

A free home valuation estimate is usually meant as an informational tool to help buyers and sellers make early decisions. They aren't official enough to support lender processes for mortgage approval.

Who Pays for Home Appraisals?

During the home-buying process, buyers almost always cover the cost of appraisals. You may be able to negotiate for sellers to cover these costs or reimburse you for them via credits at closing, but don't expect this to be the default process.

Outside of home-buying processes, the person who orders the appraisal usually pays for it. For example, if you're thinking about selling your home but want an official appraisal before you decide on pricing, you would pay for the service. The good news is that, in such a case, you can shop around for a good price.

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What Is the Home Appraisal Process?

The purpose of a home appraisal is to provide an unbiased, third-party report on a home's value. Appraisals are conducted by licensed appraisers.

Home appraisal process steps include:

Ordering the appraisal. Lenders order appraisals during the mortgage application process. Your lender will make arrangements and let you know how much you'll need to pay. Often, you pay the home appraisal fee through a lender's portal, but you might also be asked to write a check.
Setting an appointment. The lender works alongside real estate agents to set an appointment for the appraisal. Typically, neither the buyer nor seller is present during the inspection.
Conducting the inspection. A licensed appraiser visits the home and conducts an inspection, which includes measuring rooms, looking at any upgrades made to the home and assessing overall condition. During this process, the appraiser typically takes pictures to be included in their report. The appraisal inspection isn't the same thing as the home inspection, which involves a thorough evaluation of structure and function so home buyers can negotiate potential repairs.
Completing a market analysis: After the appraiser views the property, they look for comps, which are comparable homes in the area that have sold recently. Comps help an appraiser understand what the expected market value for a property might be.
Creating and delivering an appraisal report: Appraisers compile all of the information about the home and comps into a report. They also state an appraised value for the home. The report is sent to the lender, and home buyers receive a copy.

What Do Appraisals Look For?

In determining the value of a home, appraisers look at key factors such as:

Size of property: The total square footage of a home and how big a yard is impact property value. Typically, more means more, and bigger homes have higher values.
Number of rooms: The number of bedrooms and bathrooms matters, and how they're configured can also impact home values. For example, having a main bedroom with an en suite bathroom might increase value compared to a home with the same number of bedrooms and bathrooms but no primary suite.
Location: A neighborhood that's desirable, a good school district or other local amenities can increase a home's value.
Overall condition: While appraisers don't conduct a comprehensive home inspection for the purpose of notifying buyers of issues they may want to address, they do look at the overall condition of a property. Major damage to foundations, problematic upgrades or roof leaks can lower home value, for example.
Features and amenities: Appraisers consider amenities and how they might impact home value. Examples of amenities include garages, finished basement entertainment spaces, pools or second kitchens.

What Happens After You Get an Appraisal Back?

In cases where an appraisal is ordered to support the mortgage process, the lender reviews the appraisal report. Mostly, they're concerned with whether or not the value matches the purchase price.

If the appraisal value is equal to or more than the purchase price, lenders usually move forward with other underwriting processes. Home value isn't an obstacle for the mortgage.

When the appraisal value is under the purchase price, it becomes a potential obstacle. Options include:

Putting more money down: Buyers can make up the difference between the appraisal and purchase price with a larger down payment, if they have the means and desire to do so. Banks don't usually care whether you pay over the market value, as long as they aren't putting their loan funds at risk for it.
Contesting the appraisal: If the real estate agents think there's an error in an inspection report, they may contest it or ask for another appraisal.
Negotiating a different purchase price: Many buyers use appraisals to negotiate a lower price with sellers.
Canceling the sale: When the appraisal is too far below the asking price and the seller won't budge enough, buyers may have to walk away from the deal. In many cases, an appraisal coming in at or above the purchase price is a condition of the contract. If it's not, buyers may lose any good faith deposit.
Requesting repairs: Some mortgage lenders may require that sellers make repairs if home appraisals (or inspections) turn up safety issues. This is most common with government-backed mortgages like FHA and VA loans.

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