A home appraisal in Maryland is an independent estimate of the home’s value that your lender orders before approving the loan. You pay for it, usually up front or at closing, and the fee is listed on your Loan Estimate. If the appraisal comes in below the contract price, you can renegotiate, cover the gap in cash, challenge it, or walk away if your contract has an appraisal contingency.
Here’s how it works for buyers, as of October 2026. If you’re still house hunting, our buyer page explains how we write offers with the appraisal in mind.
This is general information. Your lender and loan program set the specific rules.
What an appraisal is (and is not)
An appraisal is a licensed or certified appraiser’s opinion of market value, written for the lender. It protects the lender from lending more than the house is worth. It’s based on recent nearby sales, the home’s size and condition, and the market.
It is not a home inspection. The appraiser notes condition and, for FHA and VA loans, checks certain property standards, but won’t run the dishwasher or test the furnace. You still want a separate inspection. See what a Maryland home inspection costs and finds.
It’s also not the tax assessment. SDAT’s assessed value is for property taxes and can be well above or below what the house would sell for.
Cost and who pays
The buyer pays. The lender orders the appraisal, often through an appraisal management company, so you don’t pick the appraiser and you don’t negotiate the fee directly.
The one published, official Maryland price list I know of is VA’s. Its appraisal fee and timeliness table, effective May 1, 2026, caps a single-family or individual condo VA appraisal at $700 in Anne Arundel, Baltimore, Charles, Montgomery and Prince George’s counties. Conventional and FHA fees aren’t set by a public schedule. Compare the appraisal line on two lenders’ Loan Estimates if it matters to you.
Expect more for large homes, multi-unit properties, rural properties with few comparable sales, and rush orders.
Timeline
Most appraisals are ordered right after your loan application and contract, and the report usually comes back within a week or two. VA’s schedule sets a 7 business day standard in the counties above. VA also reported that VA appraisals averaged seven business days nationwide in 2023.
Make sure your contract’s appraisal and financing deadlines leave room for a slow appraisal and a possible challenge. A tight deadline turns a low appraisal into a crisis.
Appraisals don’t last forever. For FHA loans, HUD’s Mortgagee Letter 2022-11 sets the initial validity period at 180 days, and a new appraisal is needed for each FHA case number. So if you switch lenders mid-deal, you may pay for a second one.
What moves the value
Appraisers start with comparable sales: closed sales of similar homes, close by and recent. Then they adjust for differences. The big ones:
- Location within the neighborhood, such as backing to a busy road or a park
- Finished square footage above grade (basements count separately)
- Bedrooms and full baths
- Condition and updates, especially kitchens, baths and systems
- Lot size, garage and parking
- Market direction, if prices are rising or falling fast
What doesn’t count much: your furniture, the paint color, or what the seller paid for the renovation. Permits matter, though. Work done without permits can be valued lower or questioned.
When it comes in low
A low appraisal means the lender will lend based on the lower number. Say you contract at $400,000 with 5% down, and the appraisal comes in at $385,000. The lender lends 95% of $385,000, so you’d need to cover the $15,000 gap on top of your planned down payment to close at the original price. Your options:
Renegotiate
Ask the seller to lower the price to the appraised value, or meet you partway. Sellers often agree when the comparable sales back up the appraiser, since the next buyer’s lender will look at the same sales.
Cover the gap
Pay the difference in cash. Some buyers agree to this up front in a competitive offer, up to a set amount.
Challenge it
Ask your lender for a reconsideration of value. For loans going to Fannie Mae, the Selling Guide (topic dated September 3, 2025) requires lenders to have a borrower ROV process. You get one borrower-initiated ROV per appraisal, you can submit up to five comparable sales with your reasons, and you have to do it before closing. FHA and VA loans have their own reconsideration processes, which your lender handles.
Walk away
If your contract has an appraisal contingency and you’re inside its deadline, you can cancel and keep your deposit. Without one, walking away can cost the deposit.
A challenge works when the appraiser missed something specific: a closer, more recent sale, a wrong square footage, a missed bathroom. It rarely works on “but we really like the house.” We pull comparable sales for our clients before writing an ROV.
What buyers can do before the appraisal
You don’t talk to the appraiser about value, and you shouldn’t try. But a few things help:
- Write the offer with the comparable sales in mind. We pull recent nearby sales before we suggest a price, so you know where the appraisal is likely to land.
- If you’re over the recent sales, decide in advance how much of a gap you could cover, and put it in the offer only if it helps you win.
- Make sure the appraiser can get in. A locked basement or no attic access can delay the report.
- If the seller did work with permits, ask for the list and receipts. Your lender can pass them along.
- For VA loans, make sure your agent is the point of contact on the order, so a Tidewater call reaches someone who can send sales quickly.
Appraisal contingency in the Maryland contract
An appraisal contingency makes your purchase depend on the home appraising at or above an agreed value. In Maryland it’s written into your offer, usually as part of the financing terms or an addendum, with its own deadline. Your options under it, and what happens to your deposit, are set by the exact wording, so read it with your agent before you sign.
In a multiple-offer situation, buyers sometimes shorten the contingency, cap the gap they’ll cover, or waive it. Each of those moves risk onto you. Only waive it if you have the cash to cover a gap you can live with.
FHA and VA appraisal differences
FHA
The appraiser also checks HUD’s minimum property standards. Defects that affect the safety, security or soundness of the home can be flagged as required repairs, and those usually have to be fixed before closing.
VA
The appraiser checks VA’s minimum property requirements, and the result is a Notice of Value. If the appraiser thinks the value may come in below the price, VA’s Tidewater process gives your agent and lender a short window to send additional sales before the report is final. After that, you can request a reconsideration through your lender. I cover it in buying a home with a VA loan in Maryland.
Bottom line
The appraisal is for the lender, you pay for it, and it usually takes a week or two. Protect yourself with an appraisal contingency and realistic deadlines, and if it comes in low, use real comparable sales to renegotiate or challenge it. If you’re selling and want to know where your home would appraise, start with our home value page. If you’re buying, talk to The Wilson Home Team of Samson Properties or call Stacey at (240) 913-5221.
Sources
- U.S. Department of Veterans Affairs, VA Appraisal Fees and Timeliness, effective May 1, 2026
- VA, Quick Reference for Real Estate Professionals, checked October 2026
- VA, Lender’s Handbook Chapter 12, Minimum Property Requirements, checked October 2026
- Fannie Mae, Selling Guide B4-1.3-12, checked October 2026
- HUD, Mortgagee Letter 2022-11, appraisal validity periods, July 12, 2022