Whether you’re applying for a home loan or preparing to sell, home appraisals are something that you need to consider. These appraisals are inexpensive but add another expense to a costly process. Fortunately, there are some ways to get a home appraisal for free. Take some time to evaluate your options.
Key Takeaways
- Borrowers or homeowners are typically required to pay for a home appraisal.
- There are some options for getting a house appraised for free.
- Many options for free home appraisals depend on the current real estate market.
What Is a Home Appraisal?
A home appraisal is when your property is assessed to determine its fair market value. Lenders typically require home appraisals when you take out a mortgage or other home loan. The lender usually chooses the home appraiser who will evaluate your property. Then, the lender will use the appraisal report to confirm the amount it will lend you — lenders will not want to offer a mortgage amount higher than the home's appraised value.
When Should You Get a Free Home Appraisal?
There are a few reasons you might consider seeking a free home appraisal. These include thinking of selling your home soon or renovating it. You might also consider it if you’re looking into a home-equity loan or even if you’re just curious about the current value of your home.
How to Get a House Appraised for Free or at a Low Cost
In many cases, the borrower or homebuyer must pay for the home appraisal. However, there are some ways to get an appraisal for free or at a low cost.
Utilize 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.
Pros
- Online home value estimators are free and easy to use
- This tool can be an excellent way to understand how much a home might cost in your desired neighborhood
- You can use these tools yourself instead of hiring someone.
Cons
- These tools can only provide an estimate based on comparable homes and the property’s details
- Most lenders will not accept a free online estimate as an appraisal during the mortgage process
- Online home value estimators cannot evaluate the condition of the systems and appliances within the home
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. 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.
Pros
- Asking for your real estate agent’s advice is 100% free
- Your real estate agent might have connections or knowledge from being in the business that could help you out
- Your real estate agent can also pull data from recently sold homes to help you determine how much to offer on a home
Cons
- Your real estate agent might not have any suggestions for you
- Your agent might have relationships with local home appraisals, but that doesn’t guarantee you a free appraisal
- Even if you receive a recommendation from your agent, your lender might require an appraisal from someone else
Take Advantage of Appraisal Service Promotions
Appraisal companies may offer promotions from time to time to attract new customers. Look on local neighborhood websites such as NextDoor for appraisers promoting their services. Remember to compare the pricing between different companies to find the best deal.
Pros
- You could get a home appraisal at a significant discount
- You can perform this research and contact the appraisal companies on your own
- If you start your search early, you can sign up for email lists and be informed if the company offers a promotion in the future
Cons
- Researching appraisal company promotions can be time-consuming
- If it’s a busy season or there is a lack of appraisers in your area, it’s less likely to find a promotion
- Your lender might require a different appraiser that does not offer a promotion
Use Comparative Market Analysis (CMA)
Your real estate agent can use a CMA to perform an information appraisal. The real estate agent will look at the recent home sales with similar property statistics to see what they sold for. Some factors that will be considered include the home's square footage, the style of the house, the property size, the number of bedrooms and bathrooms and other amenities. This is a good option if you’re about to make an offer on a home and want to have an estimate of what the home could be worth.
Pros
- Your real estate agent can perform a CMA for free
- Real estate agents can perform a CMA on multiple homes
- This is a great tool that you can use to determine how much you’re willing to offer to pay for a home
Cons
- CMAs are an informal type of appraisal
- Your lender will not accept a CMA as the required home appraisal for a loan
- You’ll need to have a relationship with a real estate agent for them to perform this service for you
Leverage Lender Offers
Some lenders offer free appraisals upfront, while others include the fee in your closing costs. When comparing lenders, you can ask whether any cover the costs of a home appraisal. You can also negotiate with the lender to cover some or all of the appraisal costs. This is especially true if you’re getting an appraisal for refinancing your mortgage. It’s always worth asking, but lenders might not always be willing to negotiate and cover the costs.
Pros
- If a lender is willing to cover the cost, there is less for you to worry about
- Since the lender often chooses the appraiser, you’ll know that the appraiser you use will be covered
- You can ask lenders whether they’d be open to covering the cost of an appraisal before you apply for a loan from them
Cons
- Lenders are not required to cover your home appraisal, even if you ask
- A lender will likely be unwilling to negotiate if there is a high demand for home loans
- Negotiating with lenders takes time and effort on your part
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.
Pros
- There’s no harm in researching government programs
- Government programs are set and do not require any negotiating
- There are several government programs available.
Cons
- You’ll likely have to go through an application process to qualify for a program
- Some government programs might run out of funds for the year before you can apply
- Not everyone qualifies for a government program.
How to Have 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.
How Likely Is It To Get a Free House Appraisal?
It’s not unreasonable to wonder how to get a house appraisal for free. Dealing with the real estate market is expensive, so if there is a way to save money, it’s worth looking into. There are several options to explore to get a free home appraisal. However, you should know that many options largely depend on the current market. Lenders and appraisers are less likely to offer promotions or negotiate to attract new customers if the real estate market is quite busy.
Frequently Asked Questions
Can you get a free home appraisal?
Getting a free home appraisal is possible, but it isn’t always easy.
When should you get a house appraised?
If you’re taking out a home loan, your lender will likely require a home appraisal. You should also get an appraisal if you plan to sell your home.
How much does it cost to get your house appraised?
This depends on where you live and the size of your home. The average price for a single-family home is around $500, but the cost can be higher if you have a large property or a multifamily home.