You can get a home appraised for free through government programs or if you’re in good financial standing.
A house appraisal is a necessary, sometimes costly, part of homebuying or selling. These appraisals can cost several hundred dollars, depending on your state, which is another added cost. To avoid that, we’ve asked real estate pros how to get a house appraised for free.
What’s more, you can determine your fair market value without breaking out the checkbook in several ways. We’ll walk you through all the ways to get a home appraised for free, along with some things to look out for during the process.
What is a House Appraisal?
A home appraisal is when your property is assessed to determine its fair market value. In most cases, the job is done by a certified home appraiser tasked with looking at the property’s condition (is it in good shape or in need of repairs), the size of the home and property and any renovations or projects that might affect its overall value.
The appraiser then compares the property to similar ones in the area before writing a final report with a final number, which can be used by homeowners looking to sell or refinance their property and banks wanting to confirm the home’s value before finalizing a loan.
Lenders typically require home appraisals when you take out a mortgage or other home loan or choose to refinance.
The lender usually chooses the home appraiser to evaluate your property. Lenders will not want to offer a mortgage amount higher than the home's appraised value.
RELATED: How Long Does an Appraisal Take?
How to Get a House Appraised for Free
You can get a home appraised for free or at a reduced cost in several ways.
Online Home Value Estimators
There are several free online home value estimators. This is an informal version of a home appraisal, but it can be worth considering if you are comparing home values or curious about what the home might be worth.
“Keep in mind, however, that this is ultimately just an estimate, so while it may be close to the true appraised value, it’s not going to be exact,” says Adam Hamilton, CEO of REI Hub.
Ask a Real Estate Agent
If you’re buying or selling a house, you’re likely already working with a trusted real estate agent. It doesn’t hurt to ask them if they have recommendations for inexpensive appraisals or free appraisal services.
“Most realtors have free comparative market analysis (CMA), which value a home through comparable home sales,” says Daniel Cabrera, owner of Sell My House Fast SA Texas.
If you’re not using an agent yet, you can also ask if they could include the appraisal cost in their service fee when interviewing agents.
Leverage Lender Offers
When comparing mortgage lenders, you can ask whether any cover the costs of a home appraisal. Some lenders offer free appraisals upfront, while others include the fee in your closing costs. This is especially true if you’re getting an appraisal for refinancing your mortgage.
Cabrera adds that some qualified borrowers with favorable loan-to-value (LTV) ratios, or the percentage of the loan to your property’s value, may have their appraisal fees waived by lenders.
Ali Zane, CEO and credit consultant at Imax Credit Repair Firm, adds that community banks or local credit unions might offer free appraisals to get your business. “If you're considering refinancing or a home equity line of credit (HELOC), talk to a few smaller lenders to determine if they will cover the expense,” Zane says.
It’s always worth asking, but lenders might not always be willing to negotiate and cover the costs.
Make Use of Government Programs
Utilize government programs that help with the costs of home appraisals. For example, the program will set fee schedules if you get a government-backed loan, such as a VA loan. You can also look into state and local government programs to see if any grants can help with home appraisal or closing costs.
Zane adds that you can also get a low-cost valuation if you challenge your county on your home’s tax assessment.
“Even though I was not drastically overpaying on taxes, I still regarded that formal assessment as a further opinion when precisely pricing my home,” he says. “In some areas, the charge for this is less than $100. That price is much lower than a full appraisal.”
Helpful Tips for a Successful House Appraisal
If you already own your home, there are a few things you can do to prepare your home for a successful appraisal.
- Tidy Up: Tidy up the interior of your home to make it more appealing and more accessible for the appraiser to move around and see everything.
- Do Some Landscaping: Your home's “curb appeal” is the first thing anyone – including the home appraiser – sees. Take some time to mow your grass to an appropriate height and maintain your lawn and shrubbery.
- Wash Up: Over time, the exterior of your home and porch can get dirty. Consider the look of your patio, driveway, windows and the exterior of your home itself. If necessary, rent a pressure washer to ensure everything is cleaned up and looks nice.
- Repair What’s Needed: Your appraisal will evaluate the condition of your primary home systems. If something needs repair or maintenance, get that done before the assessment.
- Consider Updates: Have you considered installing a new appliance, painting or making other home improvements before your home appraisal? Doing so can help increase its value.
Get Your House Appraised for Free
- You can get a house appraised for free through government programs or by talking with your lender.
- People with favorable loan-to-value ratios can sometimes have appraisal fees waived.
- Many options for free home appraisals depend on the real estate market.
- Some lenders may require you to pay the appraisal cost later on
Why You Should Trust Us
Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his coverage of the New York City economy. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.
For this story, we worked with Adam Hamilton, CEO of REI Hub, an accounting software for real estate businesses; Daniel Cabrera, owner of Sell My House Fast SA Texas; and Ali Zane, CEO and credit consultant at Imax Credit Repair Firm.
Frequently Asked Questions
Can you get a house appraised without a realtor?
Yes, there are several ways to appraise your house without a realtor, including working directly with the appraiser, taking advantage of government programs and asking if lenders will cover the costs.
Can I hire my own appraiser?
Yes, you can hire your own appraiser, but the bank or lender you’re working with may still hire their own (and may or may not require you to cover the cost) as part of their approval process.
What adds the most value to a home appraisal?
Upgrades such as a new heating and/or air conditioning system, improved curb appeal and ensuring that everything in the home is in working order can increase your fair market value.
Sources
- Adam Hamilton, CEO of REI Hub
- Daniel Cabrera, owner of Sell My House Fast SA Texas
- Ali Zane, CEO and credit consultant at Imax Credit Repair Firm
About Anthony O'Reilly
Anthony O’Reilly is an updates editor for Benzinga. He’s won numerous journalism awards for his coverage of the New York City economy and Long Island school district budgets.