The appraisal fee feels like a scam? What does the appraiser actually do?

What does an appraiser actually do?

You're paying an appraisal fee and want to know what the appraiser actually does for that money. The appraiser visits the property to measure, photograph, and evaluate its condition, then researches recent sales of similar homes in the area to determine the property's market value. This process typically takes a few hours at the property plus additional time for research and report preparation.

The appraiser creates a detailed report that includes the property's square footage, room count, condition notes, and comparable sales data. The lender uses this report to confirm the home's value supports the loan amount—lenders won't loan more than the appraised value. The report also protects you from overpaying for a property.

Appraisal fees commonly range from $400 to $600 and appear on your Loan Estimate and Closing Disclosure. You can review the final appraisal report, which shows how the appraiser calculated the home's value using comparable sales. If the appraised value comes in lower than expected, you can ask your lender about options like requesting a reconsideration of value or getting a second appraisal.