Mortgage appraisal fees are charged by licensed appraisers to assess a property’s market value before a loan closes. These fees typically range from $300 to $600, depending on factors like property type, location, and complexity. The borrower usually pays the fee, which is often included in closing costs. Lenders require appraisals to ensure the property meets loan-to-value ratios and to mitigate financial risk.

The primary reason lenders mandate appraisals is to verify that the collateral (the home) is sufficiently valuable to cover the loan amount, reducing default risk. Data from the Appraisal Institute (2023) shows that 92% of lenders require third-party appraisals, with average fees averaging $450 nationally. In rural areas, fees can exceed $600 due to travel and logistical challenges, while urban properties may cost as little as $350. A 2022 study by Fannie Mae found that appraisals in high-demand markets like San Francisco or New York City often take 7-10 business days, compared to 3-5 days in less competitive regions. Additionally, properties with unique features (e.g., waterfront homes or historic structures) may incur higher fees, as appraisers must conduct more thorough inspections. State regulations also influence pricing; for example, Texas caps appraisal fees at $450 for single-family homes, while California allows fees up to $600. These practices align with broader industry standards to balance accuracy, cost efficiency, and compliance with federal regulations like the Home Valuation Code of Conduct (HVCC).