10/14/2026
What Is an Appraisal, and Who Pays for It?
If you’re buying a home, you’ll probably hear the word “appraisal.” But what is it, and who pays for it?
An appraisal is an estimate of a home’s market value prepared by a licensed appraiser. When you’re getting a mortgage, the lender usually requires an appraisal to make sure the property is worth what you’re paying for it.
So, who pays? In most home purchases, the buyer pays the appraisal fee as part of the loan process.
Now, what happens if the appraisal comes in lower than the purchase price? That can create a problem because the lender generally bases the loan on the appraised value, not necessarily the price you agreed to pay.
The buyer and seller may need to negotiate, or the buyer may need to bring additional money to closing.
I’m Robert Silva with Silva Real Estate Group. Understanding these steps ahead of time can help you avoid surprises when buying a home.
