Who pays for Appraisal?

Question

The seller agreed to pay the closing cost for a house I am buying. My lender is asking for me to pay $900 for the appraisal. I had only planned to pay the 5% down payment on the house. I was expecting the seller to pay all closing cost and I thought that included the appraisal. Does the buyer always pay for the appraisal or the person who agreed to pay the closing cost?

Raymond J. Rodrigues · Answer

@Tatiana Jimenez, the buyer generally pays for their home inspection and appraisal up front on all purchases. The seller is giving you a closing cost credit at closing, not before the transaction is closed. Therefor you have to pay for it now, and you will be “reimbursed” at closing. I hope this helps.

-I am a licensed lender

Nathan Gesner · Answer

An appraisal is the Buyer's responsibility, just like the home inspection. You - or your lender - want to verify the value of the home, so you pay for the appraisal.

Eliott Elias · Answer

Buyer usually pays appraisal. Everything is negotiable

Lucia Rushton · Answer

@Tatiana Jimenez

1) buyer pays for appraisal if they have a lender and financing

2) please be specific what does it say in your contract regarding “ seller pays your closing costs”?

Steve K. · Answer

@Tatiana Jimenez buyer pays for appraisal because they’re the ones who typically need it for their loan (cash buyers can opt to get one if they want, or opt out). Sellers also sometimes get an appraisal before listing to nail down the list price, but that’s rare.

Tatiana Jimenez · Answer

@Raymond J. Rodrigues Del Rio, Texas

Raymond J. Rodrigues · Answer

@Tatiana Jimenez, out of curiosity, where are you buying?

Tatiana Jimenez · Answer

@Nathan G. Ok, thank you.

Tatiana Jimenez · Answer

@Raymond J. Rodrigues Yes this helps, thank you.

Who pays for Appraisal?

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