what to expect during the home appraisal process

What Is a Home Appraisal?

A home appraisal is an unbiased professional opinion of a home's value conducted by a licensed appraiser. It’s typically required by lenders to ensure that the mortgage loan amount doesn’t exceed the property’s value. In essence, it protects the lender from over-lending, and it protects you from overpaying.

Why Is the Appraisal Important?

For buyers: It confirms that you’re not paying more than the home is worth.
For sellers: It can validate your asking price or reveal the need to adjust.
For lenders: It’s a safeguard to make sure the loan is secured by a properly valued asset.

If the appraisal comes in lower than the sale price, it can derail or delay the transaction. If it comes in higher, that’s great news—instant equity!

The Home Appraisal Process: Step-by-Step

1. Lender Orders the Appraisal

Once you’re under contract (or in the middle of a refinance), the lender will order an appraisal through a third-party Appraisal Management Company (AMC). This keeps the process fair and independent.

2. Scheduling the Appraisal

The appraiser will schedule a visit to the home. For a purchase, this typically happens within a week or so of going under contract. The buyer or seller usually doesn’t choose the appraiser, and the cost (typically $300–$600) is often paid by the buyer.

3. On-Site Inspection

The appraiser visits the property and evaluates:

Square footage and layout
Number of bedrooms and bathrooms
Condition of the home
Upgrades and improvements
Curb appeal and landscaping
Safety or code compliance issues
Comparable homes (comps) in the neighborhood

They'll take measurements, photos, and notes during the visit, which usually takes 30–60 minutes.

4. Market Research Comparable Sales

After the physical inspection, the appraiser researches recent sales of similar homes in the area (usually within 1 mile and sold within 3–6 months). These “comps” help determine how your home stacks up in value.

5. Appraisal Report Is Completed

The appraiser compiles everything into a detailed report—often 10+ pages—called the Uniform Residential Appraisal Report (URAR). This includes:

Property description
Neighborhood overview
Market analysis
List of comparable sales
Adjusted values based on features
Final appraised value

This report is delivered to the lender and shared with you.

6. Review Next Steps

If the appraisal meets or exceeds the agreed sale price: You’re good to move forward!
If it comes in low: You may need to negotiate with the seller, increase your down payment, or request a review or second appraisal.

Tips to Ensure a Smooth Appraisal

For Sellers:

Clean and declutter the home
Highlight upgrades or improvements
Make minor repairs (leaky faucets, chipped paint)
Boost curb appeal

For Buyers:

Stay in touch with your agent and lender
Ask to see the report and review it carefully
Be prepared with options in case of a low appraisal

Final Thoughts

The home appraisal is a critical step in the homebuying or refinancing journey. While you can't control the outcome, being informed and prepared can make the process smoother and help avoid surprises. Whether you're buying, selling, or refinancing, knowing what to expect during a home appraisal gives you a clear advantage.

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