Total third-party costs run 0.4% to 0.8% of loan amount on a routine deal. Appraisal $5K to $25K, Phase I $3K to $7K, PCA $3K to $8K, zoning $1.5K to $5K, lender legal $25K to $75K (negotiated cap ); title and survey costs vary by jurisdiction. All paid by the borrower outside loan proceeds.
Cost ranges by report and deal size
Appraisal: $5K to $10K on small deals (under $5M), $10K to $15K on mid-market deals ($5M to $30M), $15K to $25K+ on large or complex deals (multi-property portfolios, hospitality, specialty assets). Appraiser must be on the lender's approved panel.
Phase I environmental site assessment: $3K to $7K on routine deals; higher on industrial sites or properties with known historical use. Per ASTM E1527-21 standard. Phase II (if recommended) runs $10K to $50K+.
Property condition assessment: $3K to $8K, scaled to property size and age.
Zoning report (e.g., PZR or equivalent): $1.5K to $5K. Required by most institutional lenders on perm and CMBS; less common on bridge.
Lender legal: $25K to $75K on routine deals; higher on capital-stack deals with intercreditor work or multi-property portfolios. Negotiate the cap at term sheet, open-ended lender legal is a frequent cost surprise.
Title insurance: lender's policy is required, typically 0.10% to 0.25% of loan amount depending on jurisdiction and reissue credit availability.
Survey: $3K to $15K on a routine deal; existing recent survey may be reusable on refi.
Transfer taxes and recording: state and local; varies materially by jurisdiction. Borrower-paid; not a lender cost.
Sources
- ASTM E1527-21 Standard Practice for Phase I Environmental Site Assessments · ASTM International · 2021
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1