How Much Do Home Appraisals Cost in California, and Other FAQs

In a previous article, we answered some of the most common questions California home buyers have regarding the home appraisal process. Today, we’ll zero in on one of those cost-related questions, to offer a more comprehensive explanation.

What’s the average or typical cost of a home appraisal in California?

In California, home appraisals typically range from $400 – $600. This average has been updated for 2023 and 2024 based on numerous sources. But the cost can vary due to the size of the home, the overall complexity of the appraisal, and other factors.

Average Cost of a Home Appraisal in California

A home appraisal is an unbiased estimate of the market value of a home. It is performed by a licensed appraiser who considers factors such as the property’s location, condition, size, features, and recent sales of comparable homes in the area.

Mortgage lenders typically require appraisals to be sure they are not lending more money than the home is worth. Appraisals can also be used for other purposes, such as estate planning and refinancing.

In California, the average cost of a home appraisal for a typical property ranges from $400 – $600. But it can exceed that range in rarer cases.

Here are some of the factors that can determine the cost of an appraisal:

• Property size and type: Larger homes or more complex property types often require more time and effort to evaluate, which can lead to higher appraisal costs.
• Location: The geographic location of the property matters as well. Appraisal costs can vary by region, with urban areas typically being more expensive to appraise due to higher demand and cost of living.
• Expertise: The experience and qualifications of the appraiser can influence the cost of a home appraisal in California. Highly experienced and sought-after appraisers might charge more for their services.
• Property condition: The condition of the property plays a role. Properties with damage or other issues often require a more detailed inspection, which can increase the cost.
• Demand: Appraisals may cost more during peak times of year, such as the spring and summer months. This is because appraisers are typically busier during these times and may charge a premium for their services.
• Urgency: If you need a rush appraisal, expect to pay more. Appraisers often charge extra for expedited services. But in a typical home-buying scenario, this is usually not a factor.

When you first apply for a mortgage loan in California, you’ll be given an estimate of all costs including the appraisal fee. So there shouldn’t be any surprises.

Who Pays for It, and When?

In California, the buyer is usually responsible for covering the cost of the home appraisal. (At least in cases where a mortgage loan is being used.) The buyer’s lender will require an appraisal to ensure that the property value matches the loan amount.

The cost can be paid when the appraisal is conducted, or rolled into the closing costs. This can vary from one lender to the next, depending on the arrangement and relationship they have with their preferred appraisers. It’s the lender that orders the appraisal, in most cases.

Like many aspects of a real estate transaction, the payment of the appraisal can be negotiated between the buyer and seller. And in a slower market, a seller might be willing to cover the cost of the appraisal. In most cases, however, the buyer will pay for it.

Homeowners sometimes order their own appraisals, prior to listing their homes for sale. They do this to find out what the property might be worth in the current market. This allows the homeowner to set a realistic asking price, based on local market conditions.

In the case of mortgage refinancing (when a person replaces their existing home loan with a new one), the homeowner typically pays for the property appraisal.

How the Process Works, at a Glance

Let’s zoom out for a moment and look at the broader process that takes place, in a standard home-buying scenario. Here’s a simple example of how an appraisal works in California:

• A buyer and seller agree on a purchase price for a home.
• The buyer’s lender orders an appraisal to determine the current market value.
• The appraiser visits the home to inspect it and collect information about its features and condition.
• The appraiser also researches recent sales of comparable homes in the area.
• The appraiser then writes a report that states their opinion of the home’s market value.

If the appraised value is equal to or greater than the purchase price, the mortgage lender will likely approve the loan. However, if the appraised value is lower than the purchase price, the buyer and seller may need to renegotiate the price. Or the buyer might need to come up with more cash for a down payment.

Learn More About the Appraisal Process

We have created one of the largest libraries of educational articles geared toward home buyers in California. Many of them focus on the home appraisal process in particular, including the following articles:

Why Mortgage Loans Require an Appraisal
In California, nearly all purchase loans require a property appraisal prior to closing. This is true for FHA, VA and conventional mortgage products alike. This article explains why they are required and how it relates to you, as a home buyer.

How a Home Appraisal Contingency Works
In a real estate context, a “contingency” is a condition that must be met for the transaction to proceed. An appraisal contingency, for example, allows you to back out of the deal if the house appraises for less than the amount you’ve agreed to pay.

Difference Between Appraisals and Inspections
First-time home buyers in California sometimes confuse the home appraisal with the inspection. But they are two different things. One focuses on the market value of the house, while the other focuses on the condition of the property.

How Do Home Appraisers Determine Value?
Appraisers use a variety of tools and metrics to determine the market value of a particular property, and this includes using comparable sales or “comps.” This article provides a in-depth look at the valuation process.

Mortgage questions? If you have questions about using a mortgage loan to buy a house in California, including the various costs that are involved, please contact our staff. We can answer any questions you have and even pre-approve you for a home loan!