The lender requires that the property they are lending you money on is worth at least as much as the purchase price, so a professional appraiser will look at the property and a few properties that have sold nearby to get a comparable price for the property.

You will need to pay your lender in advance for this service.

Depending on the home, the cost typically ranges from $250 to $350, more if travel or other costs are incurred by the appraiser.