Purchase agreements vary by state or even metro area. They can come standard with certain contingencies, which may be called by different names, and should have deadlines. If the deadline on a contingency passes and you haven't acted to leave the deal, it will often be automatically waived. Other contingencies must be removed in writing.

Inspection, appraisal, financing, and title contingencies often come standard in one way or another. When you make an offer on a home, you can cross out the contingencies you want to waive or introduce new ones. The seller can then negotiate their terms or add their own contingencies. When a home is under contract with active contingencies, the listing status is "contingent." Once all contingencies are met, the listing becomes "pending."

» Ready to make an offer? Connect with top-rated realtors in your area — and qualify for cash-back after closing!

Listing status: Pending vs. contingent

How contingencies affect home sales

Contingency clauses are very common in real estate deals: in January 2020, about 75% percent of purchase contracts had at least one contingency, according to the National Association of Realtors.[1] Because they add complexity to the sale, they're also a major cause of delays — and some issues can take days or weeks to resolve.

When markets heat up, buyers can waive contingencies to make their offers more attractive — which can speed up the sale.

This guide breaks down the most frequent contingencies you'll come across in a home purchase contract, as well as when you should consider adding or waiving them.

» MORE: 12 Biggest Deal Breakers for Home Buyers

3 most common contingencies

Inspection | Financing | Appraisal

Inspection contingency

Home inspection contingencies let the buyer walk away if the inspection uncovers something serious. The last thing you want as a new homeowner is to spend thousands of dollars on unexpected repairs after closing.

» LEARN: How Much Does a Home Inspection REALLY Cost?

If you're considering waiving any contingencies to make your offer more competitive, most agents and real estate experts recommend NOT waiving the inspection contingency. Otherwise, you're buying the home as-is, along with all of its problems.

Only consider waiving your inspection contingency if you:

• Can afford to deal with any and all unforeseen problems with the house — including major ones like a bad foundation or a high-radon area

• Are willing to forfeit your earnest money deposit if the inspection uncovers any deal breakers

After a home inspection, the inspector submits a detailed report of the home's general condition. You will typically have 7–15 days to enact the contingency and walk away with your deposit.

A repair contingency focuses on repairs up to a dollar amount.To show the seller you're serious, you can modify the generalized home inspection contingency:

• A hazard contingency targets specific environmental hazards, such as radon, lead paint, or pests.

For example, with a $5,000 repair contingency and a mold contingency, it would take over $5,000 worth of needed repairs OR the presence of mold for you to walk from the deal.

Financing contingency

Financing contingencies — also known as mortgage contingencies — let the home buyer exit the deal if they can't secure a proper loan, usually within 30 to 60 days of the offer being accepted.

If you need a loan to buy a house, a financing contingency offers an extra layer of protection. If a lender denies your loan — because of an unclear title, a low appraisal, or any other financing-related issue — you can use the financing contingency to exit the deal without losing your deposit.

If you're buying a home in a competitive market or financing is not an issue, you can waive the financing contingency to improve your offer. You might opt to waive your financing contingency if you’re:

• Making an all-cash offer, so no financing is involved

• Confident you’ll be approved (and are willing to lose your deposit if the loan falls through)

• Using seller financing to fund the purchase

Financing contingencies can be written in specific terms, like the exact dollar amount of the loan and the maximum interest rate the buyer will accept. The specific time frame can also be negotiated or depend on the market — for example, boilerplate financing contingencies in California have a deadline of 21 days.

Appraisal contingency

Appraisal contingencies let buyers off the hook if the house appraises for less than the sales price. If the appraisal comes in low and there's no contingency, the buyer faces a lose-lose situation: come up with the difference between the contract price and the appraised value, or forfeit their deposit.

A low home appraisal can be grounds for the lender to deny the loan altogether, and it can mean that the home isn't as valuable an investment as the buyer initially thought. As such, appraisal contingencies are the most common source of delayed or terminated contracts.[1]

» LEARN: What Is a Home Appraisal and Do I REALLY Need One?

Do I need an appraisal contingency?

If you want to stand out as a strong buyer in a hot market, but you're uncomfortable waiving the contingency entirely, an appraisal gap contingency can be a middle ground for both you and the seller.

Appraisal gap contingency

The appraisal gap contingency lets you exit a deal if the home you want to buy appraises for a specific amount less than the purchase price. Otherwise, you'll have to come up with the difference between the appraised value and the sticker price — the appraisal gap.

Here's how an appraisal gap contingency can work: let's say the home's asking price is $300,000 and you have an appraisal gap contingency of $15,000. If the appraisal comes in $15,000 below asking price, you're on the hook for the entire amount. If it appraises for $16,000 below, you can safely exit the deal.

Other buyer contingencies

Title contingency | Home sale contingency

Title contingency

Sometimes called a marketable title or survey clause, a title assurance lets you leave the deal if there's something amiss with the title — i.e., the right to own a particular house. This contingency might be required by your lender or local government, but it's highly recommended to include regardless.

Why do I need a title search?

As part of the home-buying process, the title company performs a title search to uncover any issues — like liens, easements, or boundary disputes — that could prevent the buyer from being granted the title. If you buy a home with a problematic title, your investment in the house is at risk.

Even if you don't include a formal title contingency, you should still perform a title search. Title histories are public records so you can do the search yourself — some can be accessed online through your country's appraisal or clerk's office.

Title insurance

Most mortgage lenders require the buyer to purchase title insurance as part of closing. On rare occasions where an issue arises that wasn't uncovered during the title search, title insurance will cover legal expenses to defend your ownership and reimburse you for related financial losses.

» LEARN: What Is Title Insurance — And Do You REALLY Need It?

Home sale contingency

The home sale contingency lets the buyer exit the contract if they can't sell their current home. This contingency is usually used when the buyer can't float two mortgages and wants extra security.

Sellers don't like home sale contingencies since they add both time and uncertainty, so you probably only want to use them in a buyer's market.

There are two types of home sale contingencies:

• A settlement contingency prevents the seller from accepting other offers, meaning they have to wait until the buyer's home is sold. It's typically used for when the buyer's home sale is underway but not yet closed.

• A sale and settlement contingency is a type of kick-out clause that allows the seller to accept a better offer that comes along before closing.

Want to make a cash offer but still need to sell your house first?

Consider using a real estate tech company that will let you buy a new house before selling your current home. Companies like Homeward, Knock, and Orchard can let you take out large amounts of equity to make a cash offer. Some, like Knock, offer bridge loans and home-swap products.

» LEARN: What Is an iBuyer? (And Should I Sell My House to One?)

Contingencies that protect sellers

Home of choice contingency | Rent-back contingency | Kick-out contingency

Sellers can include contingencies in real estate contracts, too — typically as a way to guarantee they have a place to live or move into.

Home of choice contingency

Also known as the suitable property contingency, the home of choice contingency allows the seller to cancel the deal if they can't find another house to buy. The time frame is specified in the contract: it could be weeks if the seller has a place lined up or months if they're still house hunting.

A home of choice contingency can turn away buyers, who may not want to wait around for a house that may ultimately not be available. Sellers who fear being left without a place to hang their hat may also want to consider the rent-back contingency.

Rent-back contingency

The rent-back or lease-back contingency lets sellers remain in their home as tenants to the buyer. Most lenders will allow renters to only stay for 60 days before considering it an investment property, which means higher mortgage rates.

The rent-back contingency can be a good option for sellers who are worried about finding another place to live. It also offers the buyers more leverage since the sellers can't stay in the home forever or scrap the deal if they can't find a new home.

The downside to a rent-back contingency is that the buyer and seller will need to figure out an agreement that includes things like rent, security deposit, and utility payments.

Kick-out clause

Kick-out clauses let the seller withdraw from a sale under certain conditions — mainly the home sale contingency — in favor of a better deal.

If a buyer includes a home sale contingency, the seller can negotiate for a sale and settlement kick-out clause, allowing them to keep showing their home while the buyer searches for a new house. If a better offer comes along, the seller must present the buyer with a 72-hour notice to perform to remove the contingency or leave the deal.

» MORE: What Is a Kick-Out Clause?

Backing out of a contingent contract

If one of your deal-breaker contingencies has not been met by a certain deadline, you can safely exit the home sale and get your earnest money deposit back. If you choose to leave for any reason other than the ones listed in your agreement, you risk losing your deposit as a penalty.

Buyers have to notify the seller in writing about invoking a contingency and their intent to cancel the contract. Without seller contingencies in place, sellers have very few options to back out of a deal after the contract is signed.

» MORE: Can a Seller Back Out of an Accepted Offer on a House?

If you can prove that either party breached the contract, misrepresented the sale, or committed fraud, you may need to take legal action to void the sale or receive damages.

Serious faults or hazards discovered after the home sale may be grounds for a breach-of-contract lawsuit. Sellers may be held accountable if the seller knew about the hazards and thwarted your state's disclosure laws — otherwise, the home inspector may be on the hook if they were negligent.

Notice to perform

The notice to perform is a document that sets deadlines for sellers or buyers to meet or remove contingencies. Some states, like California, require a notice to perform before a real estate contract can be canceled.[2]

In practice, a notice to perform is a more aggressive maneuver than just reminding the buyer or seller about deadlines:

• Sellers may be looking to wrap up contingencies if the buyer is taking too long to put down earnest money or hasn't shown their pre-approval paperwork.

• Buyers may be prodding sellers if they're dragging their feet on things like property disclosures.

» MORE: What Is a Notice to Perform and When Can It Be Used?

FAQs about contingencies in real estate

Related links

6 Things to Know About Loan Contingencies When Buying a Home

Buying your home with a mortgage? Here are the six things buyers need to know about structuring a loan contingency.

What is a Real Estate Purchase Agreement? (In-Depth Guide)

Rather than go into your real estate contract unaware, we’ve created an in-depth guide that breaks down the real estate purchase agreement line by line.

Contingent vs. Pending: What's the Difference in Real Estate?

A big difference for a home buyer: a house that's contingent sits much earlier on the home-purchase timeline. But there's more to know.

The post What Are Contingencies in Real Estate? appeared first on Semya-Moya.

The average cost for a home inspection in 2021 is $340, nationwide[1],with most people paying between $300 and $500.

Home inspection costs vary by market rates, square footage, and home type. Some properties may also require specialized inspections, which can increase costs significantly.

Home buyers typically pay for the home inspection out of pocket. For a relatively low upfront cost, a home inspection can give buyers leverage to negotiate a lower price for expensive repairs or walk away from a deal without losing their deposit.

Don't skip a home inspection! This step is essential for your home-buying due diligence. Be sure to shop around and compare options to get a quality inspector at a fair price. You can use free online tools to find inspectors or ask your realtor for recommendations.

» SAVE: Buy with a top local agent, get cash back!

Average home inspection costs near you

Square footage

Many home inspectors charge primarily by square footage. Here's how a home inspector might charge at a rate of $50 per 200 square feet (not including other fees).[2]

Property type

• Single-family homes are the most common. Because every home is different, inspection costs for these vary the most.
• Condos are usually less expensive to inspect because the inspector is only going to look at what the buyer is responsible for — not the roof or anything else belonging to the HOA.
• Multi-family homes are more expensive to inspect because they are larger and have more components, like extra air conditioning and heating units. Some inspectors might also charge by the unit.
• Manufactured homes are typically smaller and simpler than site-built homes, and will usually cost less than single-family homes to inspect.

Specialized inspections add up

Specialized inspections may be a good idea if the inspector sees evidence of defects or hazards, or if the area has a history of certain issues.

An inspector might recommend a specialized inspection in instances such as:

• Signs of mold, infestations, or outdated wiring

• Visible, significant cracks in the foundation

• Older homes with possible lead paint or asbestos

• Buying in an area with high levels of radon (check the EPA's radon maps)

These specialized tests are usually optional, though some loans may require them — for example, in some states, VA loans require a termite inspection.

Some inspectors may offer multiple inspections in a package deal — such as for indoor air quality — while others may contract out an expert or recommend one to you.

What affects home inspection costs?

Many inspectors start with a base fee and add on job-specific costs. Pricing can vary, depending on these factors:

• Time. Inspectors may charge by the hour or offer a range if they feel the job will take longer than expected.

• Size and complexity of property. Larger homes take more time to inspect, as do those with unusual features.

• Age. Older homes tend to take longer to inspect; inspectors can even bake the home's age into their fee.

• Experience. Licensed or certified inspectors or those with years of experience may charge more.

• Equipment. Use of high-tech equipment, like drones or thermal imaging, can increase the fee.

• Cost of living. Inspections can cost more in areas with a higher cost of living (New York City costs more than in Wichita).

• Distance traveled. Inspectors can charge mileage fees.

• Specialized inspections. Some issues require an expert or more technology for further evaluation.

Other factors, like the busy season, can drive rates up or down. And some inspectors can charge extra for certain tasks, like examining a crawlspace.

Example home inspector bill

Every inspector has their own way of billing, but here's what a bill might look like for a simple 2,400 square-foot house.

For a mansion with a lot of extra features, the inspector might adjust the price for the additional time needed.

Who pays for the home inspection?

In most residential home sales, the buyer is expected to hire and pay for the home inspector. According to one survey, 79% of home inspections were paid for by the buyer[3]. A buyer can negotiate with the seller to pay for the inspection, but that only usually only works in a buyer's market.

Why home inspections are worth it

Home inspections are one of the most important tools that you have as a home buyer. They can:

• Help you avoid a money pit — and save your earnest money deposit, if your offer has an inspection or repair contingency

• Spot needed repairs and save you money in the long run

• Give you negotiating power

• Give you peace of mind — see the American Society of Home Inspectors' Standard of Practice guide for a thorough list of what home inspectors look for

Let's say the home inspector finds a wiring issue with a house you like and recommends an electrician. For an additional $200, the electrician discovers the home is partially wired with aluminum — a serious fire risk.

You could be on the hook for thousands of dollars in repairs after you bought the house — not to mention a major hazard. Equipped with this information from a home inspection, you now have options:

• Ask the seller to rewire the home with copper before you close

• Negotiate with credits to match the cost of the rewiring job

• Walk away from the deal

If you have an inspection contingency written into your contract, and the home inspection uncovers something you don't like, you can back out of the purchase and keep your earnest money.

How do I save money on a home inspection?

You can shop around for home inspectors to compare rates and quotes. Make sure to give prospective home inspectors accurate information for pricing — type of home, square footage, age, location, etc., — and see if they have package deals for specialized inspections.

Ideally, your real estate agent will know of a reliable home inspector. Some agents have preferred inspectors, and they may be able to get you a discount.

Should I waive the home inspection?

In most cases, we don't recommend waiving the home inspection. However, it may make sense in some situations, like these:

• You're buying a fixer-upper or heavily damaged property.

• You're an investor and you've planned for major renovation expenses.

• You're trying to make your offer more desirable within a very hot market. Waiving the inspection is still very risky, so talk with your agent before putting pen to paper.

Repair contingencies

Consider a repair contingency, which says you'll perform an inspection but you're only concerned about total repair costs above a certain threshold. This shows the seller you're a serious buyer and are only looking for big problems — you won't bail just because the house needs a new front door.

If you include, say, a $5,000 repair contingency in your purchase offer, that means all repairs that you request to be uncovered by the home inspection must tally to at least $5,000 for you to exit the sale without losing the earnest money.

The home inspector might be able to give estimates for repairs or recommend a contractor.

Even if you need additional specialized inspections, it's not worth skipping out on the cost. If you're looking to save money when buying a home, try Clever. Clever will connect you with a top-performing agent who can help you navigate the entire home-buying process — plus you can get cash back.

How to find a home inspector near you

Your real estate agent will likely be able to recommend several home inspectors they've worked with in past transactions. Additionally, free online services like Angi or HomeAdvisor make it easy to find local home inspectors, read reviews, and request quotes.

You can also use these tools to find licensed or certified inspectors in your area:

• NACHI's certified home inspector finder

• ASHI's Find An Inspector

• Certified Master Inspector

Related articles

The Best Low Commission Realtors (2023 Broker Rankings)

Find the best low commission real estate agents and brokers, so you can sell with a full-service realtor and save thousands on commission fees!

3% Commission Realtors: Should You Use One?

Paying 3% commission to your realtor is a longtime industry standard, but listing fees often cost less today. Sellers can even pay a total 3% commission.

Redfin vs Zillow vs Trulia: Honestly, Which Is Best?

Comparing Redfin vs Zillow vs Trulia? We'll explain who has the most accurate home value estimates, the best real estate agents, and more.

Home Buyer Rebates: Get Cash Back When You Buy!

You can get cash back when you buy a home if you receive a home buyer rebate. We'll show you where they're available and how to get one on your next purchase!

Frequently asked questions about home inspections

The post How Much Does a Home Inspection Cost? appeared first on Semya-Moya.

FSBO.com is a business that hosts its own for sale by owner (FSBO) listings and offers a competitively priced option for getting your home on the MLS.

FSBO.com's MLS service costs $399.95 and will get you 20 listing photos in most states, which is a fair deal. FSBO.com is available in every state except North Dakota.

Note that FSBO.com doesn't get you on the MLS directly — it connects you with a state-level broker. FSBO.com also offers a $99.95 option, but that won't get you on the MLS and isn't worth the cost.

FSBO.com offers a straightforward, no-frills way of getting on the MLS, but its upgrade options are state-specific and generally bare-boned. Plus, you'll still be doing all the work yourself. If you'd prefer having professional assistance during your sale, but still want to save money, a discount broker may be a better option.

» MORE: The BEST Discount Real Estate Brokers

FSBO.com, at a glance
💲 FSBO.com and Redfin listing package	$99.95
💰 MLS package	$399.95
🎯 Locations	Every state except North Dakota

Show more

FSBO.com has been in business for over 20 years and offers a simple way of getting your home listed on its site or on the MLS without hiring a full-service agent.

If you're familiar with all the DIY aspects of FSBO, FSBO.com is a pretty good option. The site is easy to navigate — you don't have to be tech savvy to use it. FSBO.com also sells a bunch of state-specific FSBO paperwork like disclosure forms and contracts. Other than contracts, which can be purchased without signing up, FSBO.com offers sporadic, state-specific extras.

How does FSBO.com compare to its competitors?

If price is your concern, there are cheaper options to get on the MLS. And honestly, most of those listing alternatives provide more comprehensive packages than FSBO.com. Even if you don't care about being on the MLS and just want your home listed online, there are less expensive websites.

Houzeo: Most tech-savvy

Houzeo is a FSBO platform that is geared toward more tech-savvy sellers. Their dashboard includes several options, like an open house management system.

Houzeo's $299 Silver package comes with the maximum number of photos allowed by the MLS and a 6-month listing, which is cheaper than FSBO.com.

But for those who shy away from technology, FSBO.com or Flat Fee Realty may be better suited for them.

Homecoin: Most inexpensive

Homecoin offers the rock-bottom rate of $95 to get on the MLS. That option comes with a 12-month listing term, maximum photos, and 10 free listing changes.

The basic plan is a steal, but it's only available in CA, FL, GA, MI, NC, SC, TN, and VA. If it's available in your area, Homecoin is worth checking out and comparing prices.

» MORE: Read our full Homecoin review.

Flat Fee Realty: Most widely available

Flat Fee Realty is available in every state and offers very competitive rates of $179–349. However, not all areas in a state may be covered.

Flat Fee Realty offers no upgrades other than a $50 photo upgrade, although individual brokers may offer additional services.

If you're looking for the cheapest way to get on the MLS, in many states, Flat Fee Realty might be your best bet.

How can I sell my house with FSBO.com?

FSBO.com offers two packages: the "FSBO package" and the upgraded "MLS package." The MLS package comes with everything the FSBO package has, plus an MLS listing.

$99.95 FSBO.com package

👍We recommend this package for sellers who want to get on Redfin's listing site on the cheap and have other home-marketing strategies.

👎 We don't recommend this package for home sellers who don't have other marketing strategies planned.

The $99.95 FSBO package option gets your home on FSBO.com and a FSBO listing on Redfin.com. It's one of the only ways to get a FSBO listing on Redfin — you can't do it yourself. The video feature is nice and can help show off your property when sharing it on social media.

It's tough to say how many buyers regularly look at FSBO.com for listings, so there's no guarantee on how much exposure the basic package will get you. So while this is an inexpensive plan, it's non-comprehensive and won't get you the same amount of views as being on the MLS.

» MORE: How to Get Access to MLS Listings Without a Realtor

$399.95 MLS package

👍We recommend this package for sellers who are familiar with the DIY work required to sell FSBO.

👎 We don't recommend this package for sellers looking for the best deal — do some comparison shopping with its competitors.

The MLS package is a fair deal. For the price, you get a six-month MLS listing which could syndicate to major sites like Redfin, Zillow, and Trulia (FSBO.com does not guarantee it, as it's up to your local MLS feeding into those sites).

You'll also get 20 photos in most states. Some states have more or fewer photos — in Michigan you get 40 photos, while in Minnesota, you only get 15.

There are additional upgrades to purchase as well, like lockboxes and additional photos. But the type of upgrade and general availability is seemingly random.

For example, in North Carolina, you have to pay an additional $15 per photo if you want to add more than 20. In Vermont, you can get a same-day MLS entry for a $100 fee. Some states have no additional services at all.

However, understand that, like many flat fee MLS services, FSBO.com doesn't list your home itself. The company acts as a middleman that connects you to a local brokerage that will put you on the MLS.

FSBO.com doesn't show you what broker it's connecting you to before you pay, but you can email and ask who services your ZIP code. That way you can vet them before committing to a package since there are no refunds.

» MORE: What Is a Real Estate Broker?

What other services does FSBO.com offer?

FSBO.com has an online storefront that sells FSBO signs. It also sells state-specific paperwork like disclosures and contracts. Prices range from $10–30 for single forms to $60–70 for package deals.

For investors, FSBO.com offers a subscription-based foreclosure listing service.

» MORE: Do "For Sale" signs work?

FSBO.com refunds

MLSmart.com, which handles the MLS listings for FSBO.com's MLS package, does not offer refunds once you have submitted your listing to the MLS. That's pretty standard across flat fee MLS companies.

FSBO.com also says there "are no credits or refunds whatsoever" after you pay FSBO.com for its personal listing services. You can cancel your FSBO.com listing at any time by logging in and clicking on "modify your listing."

If you want to cancel your MLS listing, you have to notify your listing broker to cancel. They may charge a fee.

FSBO.com customer support

To get a better idea of how FSBO.com works with customers, we acted as secret shoppers considering its services. When we reached out, FSBO.com offered us helpful support via email, with responses made within a few business hours.

We were able to reach someone on the phone immediately, and they were both helpful and knowledgeable. Email may still be the best option since it recommends that when you call its initial automated answering service.

How much can I save with FSBO.com?

If you successfully sell your house with FSBO.com, you eliminate the seller's agent's commission, which is typically 2–3% of the sales price. On a $350,000 home, that's $10,500. While you don't get the same level of service, FSBO.com's prices are much lower than that.

However know that if the buyer has an agent, you still need to pay the buyer's agent commission. FSBO.com recommends offering the standard 2–3% fee.

While FSBO.com will save you money on an MLS listing, your overall takehome could be much less than hiring an agent. FSBO homes sell for significantly less than agent-assisted homes — about 5.5% less, according to research by Collateral Analytics. That wipes out commission savings twofold.

Instead, we recommend going with a discount brand like Clever. Clever's full-service agents will help get your home priced at maximum value for only 1.5%.

Customer reviews of FSBO.com

There are few online reviews of FSBO.com, and they're a mixed bag of positives and negatives.

That's probably because FSBO.com connects sellers with local brokerages. Once you pay FSBO.com, you work with a local listing broker — whose levels of service can vary.

✅ Great customer service, easy-to-use website

Both Chris C. and Ashley T. had a great experience with FSBO.com, noting that the website was very easy to navigate and that FSBO.com provided excellent customer service.

✅You could get a great listing broker

Tony A. noted that the broker they worked with was very helpful and provided support. Unfortunately, they don't say if they paid extra for those services or what kind of support they received.

❌You might get a bad broker

Josh W. had numerous complaints about the broker that FSBO.com connected them with. Citing errors in the listing, an unresponsive broker, and lack of showings, Josh ended up going with a discount real estate agent.

This review has been truncated and edited. You can read Josh's full review at Cool Computing.

❌ Agent spam

Michael says they received spam calls from real estate agents attempting to get their business. It's not clear if this is a negative review for a listing on FSBO.com's own site or if Michael listed on the MLS, but spam like this is a common complaint among FSBO sellers.

FSBO.com alternatives

Other flat fee MLS services

Does FSBO.com not seem right for you? Consider these options:

• 🤓 Houzeo is good for tech-oriented sellers who want an online way of managing FSBO documents. Plus it has MLS options that are less expensive than FSBO.com.
• 🏠 Flat Fee Realty is good for sellers who want to get on the MLS on the cheap. However, while it's in most states, it might not cover your county.
• 🏅 Homecoin is the cheapest option for sellers, but only available in CA, FL, GA, MI, NC, SC, TN, and VA.

You can also skip the middleman by finding a local MLS service in your area. Find a few flat fee services in your state and compare options.

Discount brokers

Discount brokers offer built-in deals with local agents to cut down on commission rates for home sellers. There are two kinds of discount brokers:

Limited-service discount brokers offer low fees but don't provide a lot of support.

Full-service discount brokers offer the same basic services you get from a traditional realtor while offering low fees.

Limited-service discount brokers don't provide enough support to justify their cost, which is why we recommend going with a full-service discount broker.

• 🔍 Redfin charges a 1.5% fee. It has a strong reputation and good remote showing technology, although it's more expensive than the competition for what you get.
• 🏡 Ideal Agent uses experienced agents but charges a 2% listing fee, which is high for this space. It also has a small agent network which means less coverage in smaller markets.
• ⭐Clever offers a low fee of 1.5%, making it one of the most affordable full-service discount brands. Clever matches you with top-rated local agents with no upfront fees, hidden costs or obligations.

FAQs

The post FSBO.com Reviews: Pros, Cons, and Better Options appeared first on Semya-Moya.

[inline-image url="6018fd00-b6bc-11ec-a642-7195085ee56f-flat-fee-group.png" alt=Flat Fee Group 3 stars"]

Flat Fee Group is an organization of brokers located throughout the United States who offer flat fee services for home sellers looking to sell without an agent.

Flat Fee Group is available in most states, with one broker handling each state — although some brokers cover multiple states.

Costs vary depending on that state's broker and the services offered. All brokers offer a listing on the multiple listing service (MLS) in addition to services that cost upwards of several thousand dollars or a percentage of the sales price.

Because each state is different, you'll want to compare the cost and services of these brokers to Flat Fee Group's competition. Some brokers may not offer the services you need or are too expensive if you only want to get your for sale by owner (FSBO) house listed on the MLS.

While most brokers offer full service support options, there's no option to choose between agents — and if a single broker is covering an entire state (or two states), it's a better idea to research and compare other discount brokers in your immediate area.

» MORE: The BEST low-commission discount brokers

Flat Fee Group, at a glance
💰 Cost	Varies by broker
⭐ Customer rating	Varies by broker
📍 Locations	Available in every state except Montana and New Mexico

Show more

Should I use Flat Fee Group to sell my home?

Flat Fee Group is a limited liability company that serves as an organization of brokers. As far as we can tell, there is no headquarters or head broker. All brokers operate independently, and there's no uniformity in price or services offered.

The biggest positive for Flat Fee Group is that it's transparent about its brokers. Flat Fee Group encourages sellers to vet their state's broker beforehand to see if they're a good fit, whereas the competition obscures their listing brokers and doesn't allow sellers to see them before paying.

If you're just looking to get your FSBO listed on the multiple listing service (MLS), Flat Fee Group may not be your best option. Some brokers have listing fees that are significantly higher than other flat fee MLS companies.

Additionally, brokers offer limited or full-service options. But many of them charge upfront, non-refundable fees which means you lose money if you decide to go with another agent or back to selling your home on your own.

Flat Fee Group is not available in Montana or New Mexico. In Alaska, West Virginia and Wyoming, there's no broker available but services are still offered. We reached out to Flat Fee Group about those non-brokered states but received no response.

» MORE: The BEST Flat Fee MLS companies near you

How does Flat Fee Group compare to its competitors?

Fsbo.com: Best Redfin option

FSBO.com offers a $99.95 package that will get you a FSBO listing on FSBO.com and Redfin.

FSBO.com's MLS option is a $399.95 package with 20 photos in most states (some have more photos, some less) with a 6-month listing term. States may also have a la carte add-ons, like lockboxes and yard signs, although pricing isn't uniform.

FSBO.com is a good, no-frills way to get on the MLS, although it may be more expensive than Fizber, ISoldMyHouse.com, or Flat Fee Group depending on the state.

» MORE: Read our in-depth FSBO.com review

ISoldMyHouse.com: Most straightforward

ISoldMyHouse.com offers a $299 MLS package that gets you 6–10 MLS photos and a $399 package that gets you the maximum photos allowed on your state's MLS. It also offers two simple optional add-ons: lockboxes for $50 each (2 for $90) and yard signs for $75 each (2 for $140).

ISoldMyHouse.com doesn't offer extra options like a comparative market analysis or contract negotiation support like many brokers at Flat Fee Group. But if you just want a quick and easy way to get your FSBO on the MLS, ISoldMyHouse is a solid choice.

» MORE: Check out our ISoldMyHouse.com review

Fizber: Most widely available

You can list your FSBO home for free on Fizber.com, which allows for unlimited photos and makes a nice way to market your home on social media.

To get your FSBO home listed on the MLS, Fizber offers $295 and $395 packages, with the $395 package allowing for maximum photos on the MLS. Fizber is available in every state.

Fizber may be a better deal than Flat Fee Group in some states. But you need to ask customer service, as state-specific terms and deals to lower the price aren't listed on the site.

Fizber also offers a $95 option which will only get your FSBO on Redfin, but we recommend FSBO.com for that option.

» MORE: Read our full review of Fizber

How much does it cost to sell my house with Flat Fee Group?

Generally, you can expect to pay between $199 and $399 for a basic flat fee MLS listing on Flat Fee Group. But every broker on Flat Fee Group has their own specific pricing and services offered, and not all are great deals.

For example, in Florida, the basic MLS option costs $177 but only comes with 6 photos for a 6-month MLS term. On the flat fee MLS sites Homecoin and Beycome, you could pay $95 or $99 and get maximum photos allowed for 12 months. Some brokers charge too much for what you get.

Another example: Tennessee's broker charges $499 for an MLS listing with just 10 photos, but it comes with contracts and disclosures. If you just wanted the MLS listing, Fizber, FSBO.com, and ISoldMyHouse.com offer cheaper services and include more photos.

Flat Fee Group also has good deals. We haven't seen any flat fee MLS service offer a cheaper price than Flat Fee Group's broker in Washington, who charges just $75 to get listed on the MLS with 8 photos for 4 months.

Almost all of Flat Fee Group's brokers have a Basic or Silver plan, which will only get your FSBO listing on the MLS. For additional services, you'll need to pay extra.

What do Flat Fee Group's upgraded services cost?

Upgraded services vary, and typically cost between $400 and $1,000.

Upgraded services may include:

• Extra MLS photos and longer listing terms
• Yard signs
• Lockboxes
• Fliers
• Comparative market analysis (CMA)
• Contract reviews
• Negotiation assistance

Note that brokers who offer higher-end services like negotiation assistance and CMAs often charge a fee, which can be anywhere from 0.5% to 3% of the sales price. Some charge a nonrefundable, upfront fee — for example, in Minnesota, the broker charges $595 upfront and then $2,900 for full service assistance. At that point, you're not selling FSBO.

Some brokers offer a la carte services. The Illinois broker charges a basic MLS listing fee of $295 plus an extra $150 for a yard sign with installation, and $200 for an electronic lockbox ($100 of which is nonrefundable). Compare that to Texas, where that broker's basic $399 MLS option also gets you a yard sign and a lockbox.

» MORE: Find the best flat fee real estate agents and brokers

Breakdown of Flat Fee Group costs by state

It's important to remember these brokers operate statewide and can be located in a completely different area from your house. It doesn't make sense to purchase agent-assistance options from a broker that isn't nearby and doesn't know your area.

If you think you need expert help selling your house, Semya-Moya will match you with top local agents who know your area. Plus, there are no nonrefundable fees — in fact, there are no upfront fees at all! If you decide Clever isn't for you, you can walk away without losing a cent.

Interested? Plug in your ZIP code below to learn more.

Flat Fee Group refunds

Refunds and cancellation policies are handled on a per-broker basis.

Your state's broker may have some information about refunds and cancellations. To find your local policy click on your state on the Flat Fee Group homepage. Then, click the "FAQS" link in the upper right hand corner and look for the relevant question.

Not all brokers have included this information. You'll want to contact them directly, before you buy their services.

How much can I save with Flat Fee Group?

Savings with Flat Fee Group depend on what kind of services you want and what state you're located in. In some states, savings aren't worth it.

In Utah, for example, it costs $500 just to get listed on the MLS with 15 photos (you can get more for less on other sites) and then up to $2,000 for virtual assistance with a $1,000 nonrefundable upfront fee. While $2,000 can be significantly less than a 3% seller's agent fee, the cost might not be worth it if you're doing most of the heavy lifting. And that upfront fee isn't appealing.

Generally, if you manage to successfully sell FSBO while only spending a few hundred dollars to list on the MLS, you can save thousands. According to the St. Louis Fed, the median price of a home sold at the end of 2021 was $408,100. Without the 3% seller's agent fee, a FSBO seller can potentially save around $12,000 minus the MLS listing fee.

Just keep in mind, you'll likely still have to pay the 3% buyer agent's commission, even on a FSBO sale.

While there are other FSBO fees that will eat into your savings, it's the sales price that matters most. On average, FSBO homes sell for 25% less than agent-assisted properties. Those thousands of dollars in lost profit are way more than you'd ever pay for a seller's agent.

Our 2022 survey of 1,000 home buyers found that the majority of agented buyers believed they could out-negotiate a FSBO seller, which essentially means they thought they could snag the FSBO home for less than its market value.

» MORE: Read the research: Essential FSBO vs. realtor facts you need to know

Additional fees and minimum service laws

Brokers located in states with minimum service laws are required to provide extra services and charge extra fees accordingly. That fee is usually an extra few hundred dollars at closing or 0.5% of the sales price for flat fee listing services, although it can be more or less depending on the service, so shop around.

For example, Flat Fee Group's broker in Kansas charges a $299 MLS listing fee, plus a $395 broker administrative fee and a $500 agent closing fee. On ISoldMyHouse.com, the basic listing cost is $299 and the extra fee is $500.

In Colorado, the Flat Fee Group broker charges $399 plus an extra 0.5% with a $1,500 minimum, and $250 for their basic MLS listing service. FSBO.com charges $399 plus a 0.5% fee to get listed on the MLS.

In Arizona, there isn't even a basic, MLS-only option for FSBO sellers, as the $99 tier costs 1% at closing and comes with broker assistance. The MLS-only option costs $799 and is only open to "agents, investors, and flippers."

» COMPARE: The best for sale by owner websites

Flat Fee Group customer reviews

There are no Flat Fee Group customer reviews online. Instead, you'll need to look up your state's listed broker.

Some brokers show their ratings and link to their Zillow or Better Business Bureau rating page. Many do not. You'll need to do some more DIY work by searching online.

Most brokers had good reviews, but some had few reviews available online.

Flat Fee Group does not make any guarantees about the brokers on its website or include any information about how they've chosen which brokers to partner with.

While Flat Fee Group is transparent about what broker you'll be working with, you only get one option per state. Sellers who need expert help will be better off going with a discount broker that has multiple agents nearby to choose from.

Flat Fee Group alternatives

Don't think the Flat Fee Group broker in your state is right for you? Consider these flat fee MLS companies:

Other flat fee MLS services

• 🏠 ISoldMyHouse.com offers uniform pricing with two tiers of service. Lockboxes and addons are available in every state, although Flat Fee Group may offer better options depending on the broker.
• 🔑 FSBO.com is good for sellers who just want to get on Redfin and FSBO.com or have a no-frills way of listing on the MLS.
• 🎲 Fizber offers special deals and extra MLS options depending on the state, but they aren't listed on the website — you'll need to ask customer service.

Discount brokers

Many of Flat Fee Group's brokers offer services that are similar to low-commission agents. But if you don't like that state's broker, or if their office is located far away, Flat Fee Group doesn't offer alternatives. It's a good idea to compare Flat Fee Group's brokers to those from a trusted discount brand.

• 💡 Redfin has a 1.5% commission, but minimum fee requirements vary by market, which can result in less savings overall.
• 🔍 REX says it can eliminate the buyer's agent commission and charge you a total of 2.5%, but that poses significant risks to the seller.
• ⭐ Clever charges a flat fee of just 1.5% and will match you with top local agents. That means you'll have several to choose from and aren't hamstrung by a single choice. Best of all, there are no upfront fees or obligations!

FAQs

The post Flat Fee Group Reviews: Pros, Cons, and Alternatives appeared first on Semya-Moya.

Fizber is a flat fee MLS company that connects for sale by owner (FSBO) sellers to a local broker.

Those brokers put FSBO sellers on the local multiple listing service (MLS), which in most areas, will syndicate to big real estate sites like Zillow, realtor.com, and Redfin.

Fizber offers a free Fizber listing and 3 paid packages for $95, $295, and $395. The Digital Boost $95 option only gets your listing on Redfin, while the other 2 packages will get your home listed on the local MLS. The $295 MLS Boost package gets you 6 MLS photos in most states, while the $395 Premium MLS Boost package gets you 25 photos in most states.

The biggest downside to Fizber is that it has state-specific variances in its packages — some states offer more photos and longer listing terms — but they're not listed on the site. To find out what your state offers, you'll have to ask the chat bot.

Fizber isn't a one-stop FSBO shop. If you're a seller who needs extra help or services, or if you aren't sure if going FSBO is right for you, you should look into discount brokers. A good discount broker will provide you with all the help of a full-service agent while still saving you thousands on agent commission fees.

» MORE: The BEST discount real estate brokers

Fizber, at a glance
💰 Cost	Free–$395
⭐ Customer rating	3.8 (178 reviews)
📍 Locations	Nationwide

Show more

Should I use Fizber to sell my home?

Fizber has been in business since 2007. Its business model has changed since then, and it now functions as a flat fee MLS company.

Fizber is not a broker. It will connect you to a local listing broker after you pay for one of its MLS packages.

If you're already familiar with the many aspects of selling FSBO and simply want to get your home on the MLS or have a FSBO listing on Redfin, Fizber might be a good choice.

However, Fizber might not be the best choice if you need extra help. Fizber doesn't really offer any of the DIY stuff necessary for a FSBO sale, like tools for scheduling showings, and its state-specific options are obscured. You'll need to ask the chat about what your state's MLS listing terms and max photos are.

And to entice buyers, you'll still need to offer a buyer agent's commission.

» MORE: Average Real Estate Commission Rates Near You

How does Fizber compare to top competitors?

If you're looking for a comprehensive site — something that offers things like paperwork, lockboxes, and marketing material — you'll want to look elsewhere.

If you're just looking to get your FSBO home on Redfin or the MLS, Fizber may offer a competitive price. But you'll need to ask the chat about what's available in your state.

ISoldMyHouse.com: Most straightforward

ISoldMyHouse.com is a flat fee MLS company offering a $299 package with 6 photos and a $399 package with 25 photos or the maximum allowed. Depending on the state, ISoldMyHouse.com's $299 package may offer less than Fizber's same-priced MLS Boost package.

ISoldMyHouse also offers add-ons, like a 1-month featured listing on its website for $25, yard signs for $75 (or 2 for $140), and lockboxes for $50 (or 2 for $90).

One final drawback — ISoldMyHouse.com isn't available in ND, SD, or WY, whereas Fizber is available everywhere.

» MORE: Read our full review of ISoldMyHouse.com

FSBO.com: Best Redfin option

Fizber and FSBO.com offer a similarly priced option to get your home listed on the FSBO section of Redfin (outside of those two sites, there's no other way to do this).

To get on the MLS with FSBO.com, you'll pay $399.95. For that price, FSBO.com will connect you with a local broker and get you on the MLS with 20 photos for 6 months in most states (some state MLSes offer more or less photos).

FSBO.com has extras like lockboxes, but availability and pricing are state-specific. If you don't need more than six photos — small properties like condos may not need more — you're better off going with Fizber's or ISoldMyHouse.com's cheaper packages.

» MORE: Read our in-depth FSBO.com review

Flat Fee Group: Easiest to vet brokers

Flat Fee Group is an organization of state-specific brokers that offer flat fee MLS listing services. Because of this, you'll be able to see exactly who you're working with. That's a key difference between Fizber, ISoldMyHouse.com, or FSBO.com, which obscure the listing broker.

The downside is that everything Flat Fee Group offers entirely depends on the state. Some states have good MLS listing deals and multiple options, while others may offer few options or are overpriced.

» MORE: Read our full review of Flat Fee Group

Important tips to know before using Fizber

While Fizber says its MLS Boost package gives you an MLS listing with 6 photos for 6 months and its Premium MLS Boost package offers 25 photos for 6 months, that's not the case in every state.

Fizber actually offers more photos and longer listing terms in some states. In California and Florida, you only get what's advertised. But in Connecticut, you get 10 listing photos for 12 months with the MLS Boost package and up to 40 photos for 12 months with the Premium MLS Boost package.

The only way to find out what your state offers is to email customer service or ask the online web chat. It pops up in the lower left hand corner of the screen on Fizber's website.

Fizber uses Sold.com for some services, which we don't recommend

Fizber works with an online real estate matching service company called Sold.com to perform its agent-matching and comparative market analysis (CMA) services.

In our review of Sold.com, we found the company made misleading claims and had absolutely terrible customer service. If you decide to use Fizber, just use it for its MLS packages.

» MORE: Yikes! Read our full review of Sold.com

Outdated website

Don't be surprised if you stumble across a page that mentions services Fizber no longer offers. Fizber's website really needs a refresh, as some of the information on pages like its terms and conditions and about us pages mention things like Fizber agents and posting to Google Plus.

Fizber no longer has agents, and Google Plus has been discontinued since 2019. Nor does Fizber do any posting to social media for you — it just gives you a shareable link.

On the plus side, Fizber's free listing service is easy to use.

» MORE: The BEST For Sale By Owner Websites

How can I sell my house with Fizber?

Fizber offers four different options:

• Free Fizber listing
• Digital Boost
• MLS Boost
• Premium MLS Boost

Free Fizber listing

👍 We recommend this option for sellers who want a nice and easy way to share their listing.

👎 We don't recommend this option for sellers who don't plan to market their home in many other ways.

The free Fizber listing is an easy way to market your home online. The nice thing about the Fizber listing — other than it being free to use — is that it comes with virtually unlimited photos which can be captioned. It's also straightforward and easy to get set up in minutes.

Plus, Fizber's online chat is very helpful if you encounter any problems.

On the downside, you'll still need to market your home yourself. We don't know how many buyers are looking at Fizber's FSBO listings, but it's certainly a smaller buyer pool than those who use sites that pull from the MLS.

As previously noted, we don't recommend using its free CMA service, since it will sign you up with Sold.com.

Other than having a Fizber listing to show off your home, you'll still need to do all the other FSBO work yourself.

» MORE: How to Sell a House By Owner: The Ultimate Guide

$99.95 Digital Boost

👍 We recommend this package for sellers who just want to get their FSBO on Redfin.

👎 We don't recommend this package for sellers who want to get their FSBO listed on the MLS.

The Digital Boost package gets you a FSBO listing on Redfin as well as access to an open house manager tool and a featured Fizber listing status.

The Digital Boost package is an easy and pretty cheap way to get on Redfin. It's also one of only two ways to do so — FSBO.com's FSBO package is the other way to get listed on Redfin.

FSBO.com costs the same amount, and we would recommend using that company over Fizber for this service because you'll also get a FSBO.com listing, and FSBO.com is a more popular site than Fizber. You can also get a free Fizber listing, and then have your home listed on both sites.

Be sure to check and see if Redfin covers your area before buying.

» MORE: How to Get Listed on the MLS Without a Realtor

$295 MLS Boost

👍 We recommend this package for sellers with small or fixer-upper properties that don't need many photos.

👎 We don't recommend for this package for sellers with large properties that would benefit from more than six photos.

The MLS Boost package gets you all of the perks from previous packages, plus access to the MLS via a local broker.

Your home will show up on hundreds of sites like Zillow and Trulia, but in many states, you'll only get six photos and a six-month term. Six photos can be adequate for small properties, like condos, manufactured homes, or fixer-uppers.

But most single-family homes benefit from having many more photos.

Fizber may offer more photos, depending on your state. You'll need to contact Fizber via the online chat or email to know exactly how many photos and how long the listing term is for your area.

Fizber won't tell you what local broker it's signing you up with, so you also can't vet the broker beforehand. If you get a bad broker, that can cause a lot of headaches or missed buyers.

» MORE: The Best Flat-Fee Agents and Real Estate Brokers

$395 Premium MLS Boost

👍 We recommend this package for sellers who want many listing photos.

👎 We don't recommend for this package for sellers in CO, ND, SD, or WY.

With the Premium MLS Boost package, you'll get at least 25 photos and a 6-month listing term. Check with Fizber to see if your state has more photos or a longer listing term. And remember to ask the chat about promotions for both MLS options, which can slash the price and strengthen Fizber's offerings.

The biggest downside for both the Premium MLS Boost and MLS Boost packages is the high 0.5% "success fee" paid at closing for sellers located in Colorado, North Dakota, South Dakota, and Wyoming.

That fee is due to minimum service laws, which require brokers to perform extra tasks for the seller (and that means higher fees). With Fizber, it costs an extra $350–500 service fee for some states although it's not listed upfront on Fizber's website.

This fee can vary by broker, and you may be able to find a flat fee MLS company near you that has a cheaper fee.

If not, you're better off going with a discount broker like Clever, which has a 1.5% fee and gets you full agent support so you can sell your house for top dollar without the hassles of FSBO.

Fizber's refund policy

With Fizber, your money is refundable for up to 30 days if you haven't submitted your MLS information to the listing broker. After those 30 days, or if you've submitted your MLS documentation to the broker, it's non-refundable.
There are no refunds for its Digital Boost option.

How much can I save with Fizber?

When you use Fizber to sell your home FSBO, you won't have to pay the 2–3% seller agent's commission. However, these savings come at a cost — your own time and energy.

While Fizber can get your home listed on the MLS, you'll still need to do all the work of selling FSBO, which includes managing showings, getting the right legal paperwork in order, and negotiating offers.

And don't forget — whether you go with Fizber, another company, or an agent, you'll still need to account for the buyer's agent commission. You'll be able to set how much you're willing to pay the buyer's agent fee, and Fizber recommends the traditional 2–3%.

The biggest downside of selling FSBO is, according to research, FSBO homes sell for much less than agent-assisted homes — 26% less on average, according to the National Association of Realtors.

Likewise, in our 2022 survey of 1,000 homebuyers, 73% of buyers who said they would consider a FSBO sale would do so because they believed they could out-negotiate a FSBO seller.

Bottom line: you don't know what you're doing, you could end up losing money when selling FSBO. If you think you need expert help, we recommend a discount broker or low-commission agent.

» MORE: Where to Find 1% Commission Realtors Near You

Fizber customer reviews

Most of the 178 online reviews of Fizber are positive. But Fizber has been around since 2007, and a significant number of those reviews mention services that are no longer offered.

Fizber is now primarily a flat fee MLS company, so we are showing reviews that discuss those services.

✅ Great customer service

Many reviews noted that Fizber's customer service team was on-point and available to help.

Richard M. noted that while FSBO isn't right for everyone, he had the time and energy to do so — and Fizber's customer service rep, Lynn, made his process even easier.

(This review has been shortened; you can read Richard's full review on Trustpilot.)

Jim said that he wasn't very good with the computer, but Fizber's customer service helped him out. Note that Fizber no longer offers a 3D tour, but you can send photos to customer service and they will post them for you.

❌ There's a risk of getting a bad broker

Similarly, a complaint made with the Better Business Bureau cited a broker that did not forward them any interested buyers and was unresponsive. The complaint was made in June 2020 and has gone unanswered.

Fizber alternatives

Other flat fee MLS services

Don't think Fizber is right for you? Consider these other flat fee services:

• 🏠 ISoldMyHouse.com is good for sellers who want lockboxes and yard signs for a reasonable fee. However, it's not available in every state like Fizber, and Fizber may offer more photos in some states.

• 👍 FSBO.com is better for sellers who just want to get on Redfin. Plus, some states offer extras — although those extras depend on the state.

• 🔍 Flat Fee Group is good for sellers who want to vet their listing broker beforehand. However, services and prices vary greatly by state.

Full-service discount brokers offer the same kind of support you would get from a traditional agent, but at half the cost or less. They'll help sell your home for top dollar while still saving you money.

• 🏡 Ideal Agent has experienced agents on hand, but its 2% listing fee doesn't offer much in the way of savings.

• 💡 Upnest offers a free and easy way to match with an agent, but its customer service isn't great, and the lowest commission rate we got was 2%.

• ⭐ Clever offers a low commission fee of 1.5% and matches you with top local agents. It's also free, so try out Clever and another discount broker like Upnest to see which one works best for you.

FAQs

The post Fizber Reviews: Everything You Need to Know appeared first on Semya-Moya.

A property appraisal is a professional estimation of a home's value, usually based on a physical inspection and recent comparable home sales in the area.

Lenders require appraisals as part of the approval process for most home purchase and refinance loans.

The appraisal process usually takes about one to two weeks in total, from the initial order to the report submission.

If the appraised value of a home is lower than expected, the lender may adjust the amount of your loan or deny the applicant outright. This can delay a transaction or, in some cases, result in it falling through entirely.

Standard home appraisals usually cost $250 to $500 dollars[1] and are paid for by the loan applicant — the buyer in a home purchase, or the homeowner when refinancing.

If you're not yet at the point where you need an appraisal and just want to know what your house may get on the open market, you can use our free online home value estimator below.

Situations that usually require an appraisal

While appraisals are only legally required in specific situations,[2] almost all lenders require them in the loan approval process. Chances are you'll need to get an appraisal if you're:

• Purchasing a home with a loan, whether conventional or government backed, to ensure the home is worth the agreed-upon purchase price

• Refinancing an existing loan to verify the amount of equity you have in your home and set the terms of the refinance loan

• Giving or receiving a "gift of equity," when a home is transferred for less than its actual market value — between family members, for example

Why do most lenders require appraisals?

Appraisals offer lenders some degree of financial protection, so they don't loan out more than a property is actually worth. This helps ensure the bank will be able to recoup its money if it ends up having to foreclose upon and resell the property.

Situations that may NOT require an appraisal

An appraisal may be optional or avoidable if you're:

• Making an all-cash purchase. Because no lender is involved, getting an appraisal is entirely up to you. That said, it's usually a good idea to protect your investment and verify the price is fair.

• Recently appraised homes. If the lender already has a recent appraisal on the books — typically within the past 120 days — they might not require a second appraisal.

• Refinancing with certain types of government-backed refinancing loans, such as:

  • Federal Housing Administration (FHA) streamline

  • Department of Agriculture (USDA) streamline or streamline-assist

  • Department of Veteran Affairs (VA) interest rate reduction

How does the appraisal process work when buying a home?

Step-by-step | Finding an appraiser | Who pays, and how much? | During the appraisal | Remote appraisals

If you’re buying a home, you must have an accepted offer and signed contract before the approval process — which includes the home appraisal — can actually begin.

Appraisals typically take about one to two weeks from the date of the inspection to the submission of the report. The process can take longer in areas with high demand (i.e., many homes being sold) and relatively few appraisers.

An appraisal report is typically good for 120 days. So if you got an appraisal but your closing was delayed by several months, you would probably need a second appraisal before closing.

Step-by-step overview of the appraisal process

1. The lender orders the appraisal after an offer has been accepted and the purchase contract signed. Appraisals usually take place after the home inspection.

2. The appraiser visits and inspect the home, after coordinating with the seller and real estate agents (though nowadays this sometimes happens remotely).

3. The appraiser drafts the report and submits it to the lender. This can take several days or a few weeks.

4. The lender reviews the report, finalizes your loan terms, and sends a closing disclosure detailing your loan terms and closing costs.

How does the lender choose an appraiser?

How lenders can hire and interact with appraisers throughout a transaction is governed by a long list of rules and regulations:[3]

• Appraisers must be licensed or certified, independent, and objective.

• Loan officers and brokers cannot select the appraiser (neither can the borrower).

• Lenders can not discuss or convey a "target value" at the time of assignment.

Though not technically required, many lenders will order appraisals through a third-party appraisal management company to avoid any potential regulatory complications.

Some lenders have direct referral relationships with independent appraisers in their area. Others may have their own, internal appraiser branches, which are legal to use so long as they operates 100% independently from the loan production of the business.[4]

Who pays for the appraisal and how much do appraisals cost?

In almost all cases, the borrower — either the home buyer or refinancer — pays for the appraisal. A standard home appraisal is about $350 on average.

Appraisals for government-backed loans (FHA, USDA, VA) are more in-depth and stringent, which usually makes them slightly more expensive. FHA and USDA loans cost about $50 to $100 more than regular appraisals. Appraisals for VA loans are governed by the VA, and those fees vary by state.

Appraisals can cost more or less depending on the home and market rates. Homes in high cost-of-living areas cost more, as do complex properties — like huge mansions and homes with water frontage.

What happens during an appraisal inspection?

A traditional "full" appraisal involves an appraiser visiting the house — usually for about 30 to 60 minutes — and visually inspecting the interior and exterior of the home.

The appraiser evaluates the home's overall condition and physical features and takes photos, measurements, and notes.

» LEARN: What appraisers look for

The seller's agent will often attend the appraisal inspection; sometimes the buyer's agent will as well. Buyers and sellers themselves usually don't go to the appraisal.

After the on-site inspection, the appraiser goes back to the office to crunch the numbers and cross-reference the data with the prices of recently sold comparable homes ("comps") in the area.

The appraiser uses all of this information to arrive at an objective estimation of the home's fair market value, which they then submit to the lender.

Throughout the process, appraisers are expected to follow a set of consistent principles and code of ethics known as the Uniform Standards of Professional Appraisal Practice (USPAP).[5]

These rules and protocols have been adopted by Congress and are enforced on a state level. Many appraiser associations and lenders enforce these standards as well.

Fully and partially remote home appraisals are becoming more common

Appraisers don't always go on-site, especially in light of improved technology and COVID-19 safety precautions.

Three common alternative types of appraisals

• Hybrid: The appraiser analyzes data remotely while someone else — like an agent, trainee appraiser, or home inspector — performs the in-person inspection.

• Desktop: The appraiser estimates the market value at their desk, referencing the MLS, tax, and comparative sales data.

• Drive-by: The appraiser drives by the house, checks out the exterior and the neighborhood, then does a desktop appraisal.

Whether you're purchasing or refinancing, you typically won't have a say in what type of appraisal you get. Remote appraisals can sometimes be less accurate, but they're usually less expensive.

What appraisers look for when inspecting a home

To estimate a home's value, appraisers largely rely on recent sale prices for comparable properties in the same market.

When looking at a home, appraisers consider a variety of factors to determine which local properties are actually "comparable" — and how the property in question measures up, adding or subtracting value based on relative quality and desirability. These factors include:

• Innate aspects of the property. Location and neighborhood characteristics, zoning classification, lot size, public utilities, and natural amenities

• Exterior characteristics. Style and architecture of the home, quality of construction materials, condition of key facets (e.g., siding, roof, foundation), and exterior amenities (e.g., decks, porches, pool, outbuildings, landscaping)

• Interior characteristics. Square footage, number of beds and baths (and their sizes), general layout, age and condition of appliances and mechanical systems, upgrades, and renovations

Appraisers are generally looking for any signs of major defects or wear and tear. While something like a messy house or unmowed lawn shouldn't technically influence the assessment, appraisers are people and they might be influenced by unkempt properties.

What happens after the appraisal?

Value comes in high | Value comes in low | Options for dealing with a low appraisal | Requesting a reconsideration of value

After the appraiser conducts the inspection and prepares the report, they'll submit it to the lender. Total turnaround time for an appraisal takes anywhere from a few days to a couple of weeks.

The lender will look at the appraised value of the home, plus your loan application and financial profile, to determine the final amount and terms of your loan.

What if the appraisal comes in higher than the contract price?

In a home purchase, if the appraisal comes in higher than that contracted sale price, the simple answer is that the buyer got themselves a good deal.

Unless you agree to it, the seller cannot retroactively raise the sale price in light of a higher appraised value because that would be a breach of contract. The mortgage amount stays the same because the sale price doesn’t actually change.

What if the appraisal comes in low?

If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow — or even deny the loan application.

For example, if you were buying a home for $400,000 with a 20% down payment, that translates to a:

• $320,000 mortgage

• $80,000 down payment

Here, the loan to value ratio (LTV) — the size of the mortgage relative to the home's appraised value — is 80%. That's considered "safe" by most lenders.

But if the appraisal comes back at $375,000 instead of the $400,000 sale price, the bank now only wants to lend 80% of the appraised value — in this case, 80% of $375,000, which is $300,000. So your max loan amount drops from $320,000 to $300,000, creating a difference of $20,000.

Your options when an appraisal comes in low

Option 1: Come up with a bigger down payment

As the buyer, you can bring more cash and cover the $20,000 difference needed to hit the full $400,000 sale price now that the max loan amount has dropped. That's on top of the original $80,000 down, bringing the new total down payment to $100,000.

Option 2: You renegotiate the sale price with the seller

If you're unwilling or unable to cover the gap, you can try to negotiate with the seller to drop the sale price to the appraised $375,000 — or at least low enough so you can actually afford to cover the difference.

Option 3: Walk away

If the deal is no longer affordable, you can simply walk away. If you have an appraisal contingency in your purchase agreement, you can pull out of the deal without penalty. If not, you can still walk away, but you may lose your earnest money deposit.

What can you do when you think an appraisal is wrong?

Appraisers can and do make mistakes! If you see any obvious errors or omissions in the report that you think may have resulted in an incorrect appraised value, you can dispute the findings by requesting a reconsideration of value (ROV).

Things you can include in an ROV

• Up to three recent comparable sales that suggest a different market value

• A second appraisal report on subject property as evidence of inaccuracy

• A list of significant errors or omissions from the initial report, specifically citing physical aspects of the home or overlooked comparable sales

Things not to include in an ROV

• Personal property, like furniture or above-ground pools

• Sales data for non-similar homes (i.e., homes that don't qualify as comparable)

• Active or not-yet-sold listings

• Non-verifiable data like a realtor's opinion or automated online valuations (e.g., Zillow's Zestimates)

If you think the appraiser obviously got it wrong, it's certainly worth contesting — but note that these rebuttals aren't guaranteed to work. Your real estate agent will likely be able to advise on the best course of action for your situation.

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