The borrower typically pays for the home appraisal, whether it's a purchase or refinance--it's included in your closing costs. For non-mortgage situations like divorce, estate settlement, or tax appeals, whoever orders the appraisal pays.
Home Purchase with Mortgage
When you buy a home and get a mortgage, the borrower (you) pays the appraisal fee.
It's typically built into your closing costs. You don't write a separate check—it's just included in the final bill.
The lender orders the appraisal to protect themselves. You pay for it because you're the one getting the loan.
Refinance
When you refinance your mortgage, the borrower (you) pays the appraisal fee.
Same as purchase. Your lender needs the appraisal to approve your refinance. You pay for it upfront.
Sale (No Mortgage Involved)
If you're selling and the buyer is paying cash (no mortgage), no appraisal is required.
The buyer might order an appraisal for their own purposes, but it's not required by a lender.
If a cash buyer orders an appraisal, they pay for it.
Divorce Appraisal
When property is being divided in divorce, typically the requesting attorney or spouse pays.
This is negotiable. Sometimes both spouses split the cost. Sometimes the spouse requesting the appraisal pays.
Ask your attorney. They'll tell you who's responsible.
Estate/Probate Appraisal
When a property is part of an estate, the estate pays the appraisal cost.
The executor handles the expense as part of settling the estate. It comes out of estate assets.
Charitable Donation Appraisal
When you're donating property for a tax deduction, the donor (you) pays.
It's a deductible expense. You pay for the appraisal, then deduct the cost as a charitable contribution expense.
Investment Property Appraisal
If you're buying an investment property with a loan, the borrower (you) pays.
Same as residential purchase. The lender needs the appraisal. You pay for it.
If you're just appraising property to establish income for investment analysis (no loan), you pay if you ordered it.
Tax Appeal Appraisal
If you're appealing your property tax assessment, you typically pay if you order the appraisal.
The county might require an appraisal to consider your appeal. If you're challenging an assessment, paying for an appraiser to defend your position is your cost.
Some jurisdictions have specific requirements. Check with your local assessor.
Pre-Listing Appraisal
Some sellers order an appraisal before listing to know their home's value, the seller pays.
This is optional. Many sellers skip it and let the buyer's lender order one.
Who Doesn't Pay
The appraiser doesn't get paid by the property owner. We get paid by the lender (through appraisal management companies) or whoever ordered the appraisal.
Sellers don't pay the appraisal when the buyer is getting a mortgage (the buyer pays).
The Cost Negotiation
For mortgage appraisals, the fee is non-negotiable. It's set by your lender. You pay what they tell you to pay.
For other appraisals (divorce, estate, charitable), you can negotiate with the appraiser on fees if you're flexible on timeline.
Call independent appraisers and ask. They sometimes offer discounts if you can wait 3-4 weeks instead of 1-2 weeks.
How It's Paid
For mortgage appraisals: Usually paid upfront (you write a check or include in closing costs).
For divorce/estate/charitable: Usually paid after the appraisal is complete (invoice upon delivery).
Ask the appraiser. They'll explain their payment terms.
The Bottom Line
In most real estate transactions, the borrower (the person getting the loan) pays the appraisal fee.
In non-transaction scenarios (divorce, estate, charitable), whoever orders the appraisal pays.
It's straightforward once you understand the context.
Ask your attorney or lender if you're unsure. They'll tell you exactly who pays and how much.