The Appraisal Fee Item on the HUD-1 Settlement Statement

In the 800 series of items on the HUD-1, the appraisal fee is listed. Generally the appraiser is chosen from an approved list by the lender. This fee can also be paid by the buyer up front, and in that case would be shown on the HUD-1 as an item "paid outside closing (POC)."

The Real Estate Settlement Procedures Act (RESPA) prohibits charging for services not actually performed. Thus, the amount you see on this line should be the actual fee charged by the appraiser, not an amount marked up for added money to the lender.

The appraisal fee would normally be shown as a DEBIT to the Buyer side in the the left column, "Paid from Buyer's Funds at Settlement." Again, if it was paid in advance, the DEBIT would not be posted, and the entry would be informational only.