What to Expect During a Home Appraisal

🏡 What to Expect During a Home Appraisal

If you're buying or selling a home, one critical step in the process is the home appraisal. Whether you're a first-time buyer or a seasoned seller, understanding what an appraisal is—and what to expect—can help ease uncertainty and ensure a smoother transaction. Let’s break it down.

💬 What Is a Home Appraisal?

A home appraisal is a professional, unbiased opinion of a home’s value, conducted by a licensed appraiser. Lenders require an appraisal before issuing a mortgage to ensure the loan amount doesn’t exceed the property’s actual value.

In simpler terms: it protects the bank—and the buyer—by confirming the home is worth what you're paying (or selling it for).

🧾 Who Orders the Appraisal?

In most real estate transactions, the lender orders the appraisal, but the buyer pays for it as part of closing costs. The appraisal typically costs between $300–$600, depending on the location, size, and complexity of the property.

🕵️ What Does the Appraiser Look At?

During the appraisal, the appraiser will visit the property and assess:

• Size & Square Footage

• Condition of the Home (inside and out)

• Number of Bedrooms and Bathrooms

• Upgrades & Renovations

• Curb Appeal & Landscaping

• Comparable Sales (Comps) in the area

• Neighborhood & Location

They’ll take notes, photos, and measurements to compile a detailed report that includes recent sales of similar homes to justify the valuation.

📉 What Happens If the Appraisal Comes In Low?

This is where things can get tricky. If you're a buyer, and the appraisal comes in lower than the offer price, your lender may only approve a loan for the appraised value—not the full offer.

At that point, you have several options:

• Renegotiate the sale price with the seller

• Pay the difference in cash

• Challenge the appraisal or request a second opinion

• Walk away (if your contract has an appraisal contingency)

If you're a seller, it’s important to price your home realistically to avoid delays or price negotiations later.

📝 Tips to Prepare for a Home Appraisal

If you're selling your home, here are a few ways to make a great impression:

✅ Tidy up and declutter
✅ Make minor repairs (leaky faucets, chipped paint)
✅ Mow the lawn and touch up landscaping
✅ Provide a list of upgrades or renovations
✅ Ensure easy access to all areas (attic, basement, garage)

While you can’t control the comps, presenting your home in the best light may help the appraiser view it more favorably.

🏁 Final Thoughts

A home appraisal is a key checkpoint in the home buying or selling journey. It confirms that the value of the home aligns with the price being paid—and helps protect all parties involved.

If you're unsure how to prepare or have concerns about a pending appraisal, a real estate professional can guide you through the process and help you understand what it means for your unique transaction.