HELOC Appraisal: What to Expect, Costs & How to Prepare (2026)

Your HELOC amount depends on your appraisal. The higher your home's appraised value, the more equity you can access. Here's exactly what happens—and how to prepare.

Do You Always Need an Appraisal for a HELOC?

Usually yes, but the type varies.

For smaller HELOCs with low loan-to-value ratios, lenders might use an automated valuation model (AVM) instead of sending someone to your home. For larger amounts or higher LTVs, expect an actual appraisal.

Factors that determine appraisal type:

• Loan amount requested
• Your loan-to-value ratio
• Property type (single-family vs. condo vs. multi-unit)
• Lender's internal policies

Types of HELOC Appraisals

Desktop Appraisal ($0-150)

The appraiser never visits your home. They analyze public records, tax assessments, and recent sales data to estimate value. Some lenders use AVMs (computer algorithms) which cost you nothing.

Best for: Low LTV requests, established neighborhoods with lots of recent sales.

Drive-By Appraisal ($100-250)

An appraiser visits but only views the exterior. They verify the property exists, note obvious condition issues, and compare to similar homes.

Best for: Moderate loan amounts, homes in good exterior condition.

Full Appraisal ($300-500)

An appraiser tours the interior, measuring rooms, noting upgrades, and documenting condition. This is the most thorough—and most expensive—option.

Required for: Higher LTV ratios, larger loan amounts, unique properties.

What Happens During a HELOC Appraisal

For full appraisals, here's the timeline:

Week 1: Scheduling Your lender orders the appraisal. An appraiser contacts you to schedule—usually 1-2 weeks out depending on local demand.

The Visit (45-90 minutes) The appraiser walks through your home, measuring rooms and taking photos. They note:

• Square footage and layout
• Number of bedrooms and bathrooms
• Kitchen and bathroom conditions
• Updates and renovations
• Overall maintenance and repair needs

After the Visit (3-7 days) The appraiser researches comparable sales ("comps")—similar homes that sold recently nearby. They adjust for differences and arrive at a final value.

You Receive Results Your lender shares the appraisal report, usually within a week of the visit.

How to Prepare for Your HELOC Appraisal

Maximize your home's value with these steps:

Before Scheduling:

• Compile a list of all upgrades and improvements with dates and costs
• Research recent sales in your neighborhood so you know what to expect
• Address any obvious repairs (leaky faucets, broken fixtures)

The Day Before:

• Deep clean everything—kitchens and bathrooms especially
• Clear clutter to make rooms feel larger
• Improve curb appeal (mow lawn, trim bushes, clean walkways)

During the Visit:

• Be available to point out improvements the appraiser might miss
• Provide your upgrade list with documentation
• Mention any non-obvious features (new HVAC, updated electrical, etc.)

Appraisers are professionals, but they only see what's visible. Your job is to make sure they don't overlook value-adding improvements.

What If Your HELOC Appraisal Comes in Low?

A low appraisal isn't the end. You have options:

Request Reconsideration Provide additional comparable sales the appraiser may have missed. If you know of recent sales at higher prices, submit them to your lender with a reconsideration request.

Pay for a Second Appraisal Some lenders allow this. A different appraiser might select different comps and reach a different conclusion. It's a gamble, but sometimes worth it.

Accept a Lower HELOC Amount If you don't need the maximum, you can proceed with whatever amount the appraisal supports.

Wait and Reapply If the market is appreciating, waiting 6-12 months might get you a better value. Not ideal if you need funds now.

Who Pays for the HELOC Appraisal?

Typically you—the borrower—pay the appraisal fee. Expect $300-500 for a full appraisal.

Some lenders waive appraisal fees for:

• High credit scores
• Large loan amounts
• Existing customers
• Promotional offers

Ask about waived or reduced appraisal fees when you apply. If the lender covers it, that's $300+ back in your pocket.

If your HELOC doesn't close for any reason, you generally don't get the appraisal fee back. It pays for the appraiser's time, regardless of outcome.

Frequently Asked Questions

How long is a HELOC appraisal valid?

Most lenders accept appraisals for 90-120 days. If your application takes longer, you might need a new one.

Can I appeal an appraisal I disagree with?

Yes, through the reconsideration process. Provide evidence—comparable sales, documentation of improvements—to support a higher value.

What if my home is unique or hard to compare?

Unique properties (waterfront, custom builds, large acreage) are harder to appraise. Expect a full appraisal and potentially more conservative values.

The Bottom Line

Your HELOC appraisal directly determines how much equity you can access. Prepare your home, document improvements, and be present to point out what makes your property valuable.

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