Who Hires the Home Appraiser?

In most financed home purchases, the buyer’s mortgage lender hires the home appraiser, even though the buyer typically pays the fee. However, sellers, homeowners, attorneys, and others may also hire an appraiser depending on the situation.

If you are buying, selling, refinancing, or simply trying to understand property value, this guide explains who orders the appraisal, how the process works, and what to expect.

What Is a Home Appraisal?

A home appraisal is a professional opinion of a property’s market value completed by a licensed or certified appraiser. It is often required when a buyer is using financing, but appraisals are also used for refinancing, divorce, estate planning, tax disputes, and pre-listing pricing decisions.

It is common for people to confuse a home appraisal with a home inspection, but they serve different purposes. A home inspection evaluates a property’s visible condition and systems, while an appraisal focuses on determining value. For a full breakdown of how appraisals work from start to finish, including what affects value locally, review this Wellington home appraisal guide.

Three Common Approaches Appraisers Use

• Sales Comparison Approach: compares the home to similar recently sold properties and adjusts for differences.
• Cost Approach: estimates what it would cost to rebuild the home today, minus depreciation, plus land value.
• Income Approach: used more often for income-producing properties and estimates value based on potential rental income.

For most single-family homes, the sales comparison approach is usually the most important.

Who Orders the Home Appraisal?

The answer depends on the situation.

In a Financed Home Purchase

When a buyer is getting a mortgage, the lender orders the appraisal through an appraisal management company or approved appraisal panel. Buyers do not usually select the appraiser directly, even though they generally pay the appraisal fee as part of their closing costs.

Lenders require appraisals because they want to confirm the property is worth the amount being financed. If the value comes in below the contract price, the lender will typically base the loan on the lower appraised value rather than the agreed purchase price. This can create an appraisal gap that the buyer and seller must resolve through renegotiation, additional cash from the buyer, or in some cases contract cancellation. For a full breakdown of what happens in that situation, see what happens when a home doesn’t appraise.

In a Cash Purchase

If a buyer is paying cash, no lender is involved, so an appraisal is optional. Some cash buyers still hire an appraiser for peace of mind, especially when purchasing a luxury property, unique estate, or home with limited comparable sales.

For Homeowners

Homeowners may hire an appraiser directly for several reasons, including:

• Pricing a home before listing it for sale
• Refinancing an existing mortgage
• Divorce or legal proceedings
• Estate settlement or probate matters
• Property tax appeal support

Who Pays for the Home Appraisal?

Even though the lender hires the appraiser in most financed purchases, the buyer typically pays for the appraisal as part of their closing costs. This is one of the most commonly misunderstood points in the appraisal process.

The buyer paying the fee does not mean the buyer is the appraiser’s client. In a lender-ordered appraisal, the lender is the client and the report is prepared to meet the lender’s underwriting requirements. The buyer pays the cost but does not direct the appraiser’s conclusions or have the same access rights as the lender does.

What Affects a Home Appraisal Value?

Appraisers consider many factors when forming a value opinion, including living area, condition, upgrades, lot characteristics, location, and recent comparable sales. For a detailed look at every factor that can influence appraised value, see the Wellington home appraisal guide.

How Long Does a Home Appraisal Take?

Larger or more complex properties may take longer at both the inspection and report stages.

How Much Does a Home Appraisal Cost in Florida?

Many standard single-family appraisals in Florida typically fall around $400 to $650 depending on property complexity. Larger or more unique properties may cost more.

How to Prepare for a Home Appraisal

The most important steps are completing visible repairs, decluttering, preparing a written list of upgrades, and making sure all areas of the home are accessible on appraisal day. For a full step-by-step checklist, see the complete guide on how to prepare for a home appraisal.

Where to Find a Licensed Home Appraiser

If you need to hire an appraiser directly, asking your real estate agent for a recommendation is often a good starting point. You can also search directories of licensed real estate appraisers.

Formal appraisal reports must be completed by licensed or certified appraisers who follow USPAP standards. This is different from a CMA, which provides pricing guidance but is not a formal appraisal.

Frequently Asked Questions About Home Appraisals

Can I be present during the appraisal?
Yes, a homeowner is often present, although not required.

What if the appraisal comes in low?
The buyer and seller may renegotiate, adjust terms, or the deal may not move forward. For a full breakdown of options, see what happens when a home doesn’t appraise.

Is the county property appraiser value the same as market value?
No. The county appraiser value is used for tax purposes and is not the same as a licensed market appraisal.

Does a CMA replace an appraisal?
No. Only a licensed appraiser can issue a formal appraisal report. A CMA is a pricing tool prepared by a real estate agent and is not accepted by lenders in place of an appraisal.

How long does the home appraisal process take?
The on-site visit often takes about 20 to 60 minutes. The full process usually takes 7 to 20 days depending on timing and availability.

How much does a home appraisal cost in Florida?
Most standard single-family appraisals in Florida range from about $400 to $650 depending on property complexity.

Can a home appraisal be challenged or disputed?
Yes. A reconsideration of value can be requested through the lender if there are factual errors, overlooked upgrades, or stronger comparable sales that were not fully considered. The appraiser may or may not revise the value depending on the supporting data provided.

Final Thoughts

So who hires the home appraiser? In most financed transactions, it is the buyer’s lender. In other situations, the homeowner, buyer, or another party may hire the appraiser directly. Understanding this distinction can help buyers and sellers navigate the appraisal process with clearer expectations.

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About the Author

Michelle Gibson is a Wellington Realtor with Hansen Real Estate Group Inc. who has been helping buyers and sellers throughout Wellington and Palm Beach County since 2001.