How Much Does a Home Appraisal Inspection Cost?

A recent survey suggests that 82% of Canadians saw unexpected costs when buying a house, one of them being the appraisal fees. The average home appraisal inspection cost is around $300 to $600, but multiple factors like property size, location, and urgency can inflate the final bill quite a bit.

Let’s break down the price range and see how to get the best value for your appraisal fees.

Understanding Home Appraisal Inspection Costs

By paying the home appraisal inspection fee, a certified appraiser will evaluate your house’s market value. Keep in mind that the cost for this service isn’t an indicator of the property's value, as in fact, it reflects the complexity of the job as well as the required time to complete the appraisal.

After inspection, the expert provides an unbiased evaluation in a detailed report based on the findings and housing market situation. The inspection itself takes about 20 to 40 minutes; doing the research, analysis, and preparing the report comes later. The appraisal inspection cost covers this entire process, not just the on-site visit.

To better understand the difference between appraisals and inspections, check out this video.

How Much Is an Appraisal Fee for a House?

Typical appraisal inspection fees in Canada fall between $300 to $600 for residential properties. Commercial appraisals have a higher price range due to their complexity. Let’s break down the price range:

Note: Appraisal inspection cost may also include applicable taxes and disbursements related to the appraisal. In larger cities, charges tend towards the higher end of these ranges.

What Factors Affect the Appraisal Inspection Cost?

The following factors directly influence the fees:

• Property Size and Complexity: These two have a moderate to high impact on the cost. Larger houses or those with complex features need more time and effort for inspection and report writing.
• Property Condition: Appraisal assessments for houses with poor conditions are challenging, as it’s not easy to find comparable properties and make accurate repair-related adjustments.
• Property Type: Property type significantly impacts appraisal inspection costs. Single-family homes generally cost less than commercial or multi-unit dwellings.
• Location: In urban and high-demand areas, this service is usually more expensive due to market dynamics and higher operation costs.
• Turnaround Time: Quick-turn appraisals or rush jobs often come with additional fees.
• Additional Services: Extra requests like retrospective appraisal, detailed reports with extensive market analysis, or re-inspections increase the costs, too.

Who Pays the Appraisal Inspection Fee?

Usually, the buyer pays for the home appraisal as part of the mortgage application process. Although it can change depending on the transaction and negotiations between the parties.

The appraisal is generally ordered by the lender, but the fee is often passed on to the buyer. Sellers may pay the home appraisal inspection cost for listing or legal purposes.

Getting the Best Value for Appraisal Inspection Fee

Look for professionals with AACI or CRA certifications from reputable organizations like the Appraisal Institute of Canada. Prioritize candidates with experience in your area and property type. Get multiple quotes to compare pricing and services, and make sure what’s included (photos, follow-up visits, etc.).

You may want to consider negotiating fees as well. Some may offer lower rates if you help with scheduling or provide documents upfront. Also, always ask about potential extra charges like travel, rush fees, or re-inspections to avoid surprises.

Frequently Asked Questions

Is an appraisal an inspection?

Not exactly. Appraisals determine a home's market value, while inspections assess its condition.

What is the difference between a full appraisal and a drive-by appraisal?

In a full appraisal (common for mortgage approvals), the appraiser inspects both the interior and exterior, takes measurements, photographs, and analyses comparable sales in detail. Drive-by appraisal is limited to visual inspection from the outside. It reduces time and cost but may lead to less accurate valuations as well.

When is the appraisal fee paid?

The appraisal inspection fee is typically paid upfront by the buyer/borrower and is included as part of the closing costs.

Can I get a copy of the appraisal report?

Appraisal reports are usually the property of the lender, who ordered the appraisal. The borrower may receive a copy if the lender is OK with it. If the appraisal is privately ordered (e.g., for estate or legal matters), the client is entitled to receive the report.

What if the appraisal comes in lower than expected?

You can request a second appraisal at your cost, but there is no guarantee it will be higher. Also, you may be responsible for both fees. If the value is low, the offer price is probably too high, or market conditions have changed.

The Bottom Line

In conclusion, while the cost of a home appraisal in Canada varies, understanding the key influencing factors enables you to better prepare and budget for this essential step.

Need additional resources? Submit your request at Houmse and get free quotes from inspectors in your region, review their expertise, experience, client ratings and reviews, and hire the best option.