The appraisal is usually a condition of final approval. A valid approval cannot exist without first having an acceptable valuation. An appraisal is done in order to establish the value of the house at the time of purchase. Lenders require detailed summary appraisals to ensure a true value of the property, The Appraisal is done by a third party, who performs a task, and the client has to pay the appraisal fee when the work is completed. For more than 20% down payment on a home it will always be a condition to have an appraisal completed and the fee for appraisal is a cost to the client. If deals are insured the insurer will cover the cost for the assessment value of the home as it is insured, also if a client buys a house through the builder, appraisal is required by the lender. The appraisal establishes whether or not the client is paying fair market value.