Your property appraisal guide

We might require an independent appraisal when you finance a home purchase or refinance with NewCastle Home Loans. Here's what you need to know about how appraisals work, what they cost, and what to expect.

 

What is a property appraisal?

A property appraisal is a professional report that estimates the value of a home.

A licensed appraiser inspects the home and compares it to similar properties in the area. Lenders use this report to ensure the home’s value and condition meet the loan requirements.

Example: 

When Jasmine bought a two-flat in Logan Square, her appraiser reviewed recent sales of nearby two-unit homes to estimate the property's value. That helped confirm the property met loan guidelines and was worth the purchase price.

 

How much does an appraisal cost?

Appraisal fees vary based on the type of property, loan program, and location. In most cases, expect to pay between $450 and $900.

Here are the key factors that affect the cost:

• Property type: Multi-unit appraisals (2–4 units) cost more than single-family homes.
• Loan program: FHA and VA appraisals may require additional reporting.
• Occupancy: Appraisals for investment properties typically cost more than those for primary residences.

 

 

Who pays for the appraisal?

You, the borrower, are responsible for paying the appraisal fee upfront.

The appraisal won’t be scheduled until payment is received. Once paid, the appraiser will contact the seller’s real estate agent (for purchases) or you directly (for refinances) to set the appointment.

 

How do I pay for the appraisal?

After we order the appraisal, you’ll receive an email from the Appraisal Management Company with a secure payment link.

Here’s how it works:

1. Check your inbox for the payment request.
2. Click the link to pay the fee by credit card.
3. After payment, the appraiser will schedule the inspection.
4. You’ll receive the final appraisal report by email, usually within 7 to 10 business days.

 

How to cancel the appraisal

Yes. If you change your mind, let us know right away by emailing:

processing@newcastle.loans

 

Do I get a refund if I cancel the appraisal?

• Full refund: Cancel at least 24 hours before the scheduled inspection.
• Partial or no refund: Cancel less than 24 hours before or after the inspection. In that case, the appraiser may have already started work.

 

How do we select appraisers?

At NewCastle Home Loans, we partner with an Appraisal Management Company (AMC) to manage the appraisal process. The AMC acts as a neutral third party between lenders and appraisers, helping ensure each appraisal is fair, accurate, and compliant with federal regulations.

The AMC handles:

• Ordering and tracking the appraisal
• Assigning an appropriate, qualified appraiser
• Ensuring quality control and timely delivery of the report

Who qualifies to appraise your home?

Appraisers must meet strict professional standards. Here’s what we require:

State licensing:  The appraiser must be licensed in the state where the property is located.

Local market expertise: They must be familiar with the area and have experience appraising similar property types.

Required education: Appraisers complete approved courses in appraisal principles, procedures, and market analysis.

Background checks: All appraisers undergo screening and must be in good standing with state regulators.

Ethical standards: Appraisers must follow the Uniform Standards of Professional Appraisal Practice (USPAP), which ensures ethical conduct, impartiality, and accurate reporting.

By working only with vetted, independent appraisers, we help protect your interests and maintain trust in the valuation process.

 

What if the appraised value is less than the purchase price?

If the appraisal comes in lower than the purchase price, we must base your loan on the lower appraised value.

Example:

You offer $300,000 and plan to put 10% down. If the appraisal values the home at $290,000, your loan is based on 90% of $290,000, not $300,000. That changes your loan amount from $270,000 to $261,000.

In this case, you would have three options:

1. Ask the seller to lower the price
2. Increase your down payment
3. Cancel the contract if your purchase agreement allows it

 

What if I'm refinancing, and the value comes at a low price?

When refinancing, the new loan amount is based on the appraised value, not the estimate you submitted on your application.

A lower-than-expected appraisal could affect your loan options.  We'll review the report with you and talk through your updated options.

 

What is a Reconsideration of Value?

When the appraisal is complete, you'll receive a copy of the report. If you believe it’s inaccurate, incomplete, or unfair, you have the right to request a Reconsideration of Value (ROV).

An ROV asks the appraiser to re-evaluate the home's value based on:

• Errors in the report
• Poor selection of comparable properties
• Missing details about the home
• Concerns about bias or discriminatory influences

Example: 

Taylor noticed that the appraiser had missed key upgrades, including a new kitchen and a finished basement. With our help, Taylor submitted a ROV with better comps, and the appraised value was adjusted accordingly.

 

How do I request a Reconsideration of Value?

To initiate an ROV, you can contact your NewCastle loan officer and explain why you think the appraisal may be flawed or incomplete.

We’ll guide you through the process and help submit relevant information, such as better comps, photos, or property facts the appraiser may have overlooked.

 

Have questions about your appraisal?

We're here to help you every step of the way,  from ordering the appraisal to understanding the final report.