An appraisal is an estimate of value prepared by a Licensed Appraiser, hired by the Lender when a mortgage is to be put on a property. The Appraisal will determine if the property value is worth the sale price and loan amount. A detailed comparison is made between the features of your home and the houses sold in the neighborhood that are similar in size, condition, and style, for the previous 6 to 12 months. The data is derived from the Multiple Listing Service and a detailed review of the home and neighborhood. Appraisers must also determine compliance with FHA and VA guidelines. The cost is usually between $350 and $450 and is paid in advance to the lender. Non-qualifying assumptions and cash sales do not require an appraisal.