Understanding VA Appraisal Costs: What Homebuyers Need to Know

A VA appraisal fee is the cost of having a licensed VA appraiser evaluate the home you want to purchase with your VA loan. This is not just about putting a price tag on the house; it’s a crucial safeguard for both you and your lender.

Here’s what the appraisal covers:

• Fair market value: The appraiser ensures the home is priced appropriately compared to similar properties in the area that have sold within a recent period.
• Minimum Property Requirements (MPRs): The VA requires homes financed with VA loans to meet certain health, safety, and livability standards. The appraisal confirms whether the property meets these Minimum Property Requirements (MPRs) set by the VA.

It’s important to note that a VA appraisal is not the same as a home inspection. A home inspection is optional but strongly recommended if you want a detailed look at the property’s condition, including potential maintenance issues the VA appraisal won’t cover.

The bottom line: The VA appraisal fee is money paid to the appraiser for their work in the homebuying process. These appraisers look to confirm the investment is protected and your new home is safe for your family, while also giving lenders confidence that the property is worth financing.

Unlike conventional or FHA appraisals, VA appraisal fees are not negotiated between borrower and appraiser. Instead, the Department of Veterans Affairs sets maximum allowable fees, which vary based on location, property type and property size. This makes the process more standardized, but it also means costs aren’t identical across the country.

Generally, most VA appraisals range from $600 to $1,200, although rural or high-demand areas may incur higher costs. The maximum VA appraisal fee is $1,300 for high-cost areas.

Below is a table showing the VA appraisal fee by state, as outlined in VA regional loan center guidelines. These represent the maximum allowable charges for single-family properties.

Even though the VA sets maximums, several factors can influence the VA appraisal cost:

• Location: Properties in rural or hard-to-access areas may require additional travel for the appraiser, which increases fees.
• Property size and type: Larger homes, multi-unit properties or manufactured homes can be more complex to appraise.
• Unique or historic homes: Properties with unusual features or extensive land may require more research and work.
• Market demand: In competitive housing markets, appraisers may charge toward the higher end of the VA’s allowed range.
• Rush orders: If you’re on a tight closing timeline, expediting the appraisal may come with an additional premium. Typically, appraisals take one to three weeks.
• Remote locations: If the property is in a hard-to-reach area, like parts of Alaska, Hawaii or island territories, the appraiser may add mileage or travel costs.
• New construction: For proposed or under-construction properties, an additional $50 fee may apply.
• Re-inspections: If the home needs repairs to meet VA standards, the appraiser may need to return to verify the work. This follow-up visit can cost an additional $150 fee.

Being aware of these possibilities helps ensure you’re not caught off guard during the VA appraisal process.