Who pays for a commercial or residential appraisal usually depends on the situation:
- Home Purchase (Mortgage): The buyer usually pays for the appraisal, because the lender requires it to ensure the property is worth the loan amount.
- Refinancing: The homeowner pays, since the lender wants a current value.
- Commercial Property: Often the party requesting the appraisal pays—could be the buyer, seller, or a business seeking a loan or insurance.
- Divorce or Estate Settlement: The person requesting the appraisal pays, unless otherwise agreed.
💡 Tip: Whoever pays for it typically gets the appraisal report, but some lenders may restrict sharing it with other parties.
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Here’s a simple table showing who usually pays for an appraisal in different scenarios:
| Scenario | Who Pays | Notes |
|---|---|---|
| Home Purchase (Mortgage) | Buyer | Lender requires it; ensures loan amount matches property value. |
| Refinancing a Mortgage | Homeowner | Lender wants updated value before approving loan. |
| Commercial Property Purchase | Buyer (sometimes seller) | Depends on agreement; lender may require it for financing. |
| Commercial Property Refinance | Owner/Business | Needed to update property value for loan terms or insurance. |
| Divorce or Estate Settlement | Requesting Party | Paid by whoever hires the appraiser; can be split by agreement. |
| Property Tax Dispute | Property Owner | To challenge assessed value with local tax authorities. |