Bob Northern & Company
12540 Patterson Ave
Richmond, VA 23238
Tel: 804-708-9463 • Fax: 804-708-9467
Financial Information
House Appraisals

What is in the Appraisals?

Appraisals are an integral part of the real estate transaction. Many people don't realize that the appraisal is done to protect the bank's interest in the property, not necessarily yours! Normally appraisals cost from $350-$400 depending on the lender and type of loan utilized. Appraisals for conventional loans are usually about $350.

FHA (Federal Housing Administration) appraisals run about $425.

VA appraisals (Veteran's Administration) cost about $350.

You need to pay your lender approximately $350.00+ for the appraisal on your new home. You don't want to pay for an appraisal on a home if you and the seller cannot agree on the repairs to be done and you don't end up buying it! Wait until after your house inspection to order your appraisal!

What happens if the house doesn't appraise for the sales price?
One of three things will happen:
The contract sales price will be amended to reflect the lower appraisal amount and you will close on your new home based on the lower sales price.
The purchaser can pay the difference in cash between the loan the bank is willing to offer based on the lower appraisal.
The contract can be terminated. There is no penalty to the purchaser because the purchaser was unable to fulfill the financing contingency in the contract.
We highly recommend Northern Appraisal Group of Virginia. They have a staff of licensed residential appraisers. They are F.H.A. approved appraisers who offer excellent turn around times and a commitment to excellence. They are approved by hundreds of Virginia and out-of-state lenders because of their outstanding professionalism. Feel free to check out their website at

(Please note all amounts listed as approximates are estimates only and may vary up or down)