For commercial property, the party who pays for the appraisal is usually the buyer, but it can vary depending on the situation:
| Situation | Who Pays | Notes |
|---|---|---|
| Purchase with a bank loan | Buyer | Lenders usually require an appraisal to approve the loan; buyer pays as part of closing costs. |
| Refinancing | Property owner / borrower | The lender will require an updated appraisal; borrower covers the cost. |
| Property tax appeal | Property owner | If challenging assessed value, the owner hires the appraiser. |
| Sale negotiation without financing | Negotiable | Buyer and seller can agree who covers the appraisal cost. |
Key point: Even if the lender requires it, the buyer typically pays upfront, but it may be factored into the overall deal price.
Related
Who pays for commercial appraisals?
What is the most common appraisal method for commercial property?