You’ve found the perfect home, the offer’s accepted, and everything feels like it’s falling into place… until someone says,
“Now we just need to wait on the appraisal.”
Cue the question: What exactly is a home appraisal — and why does it matter so much?
Whether you're planning to buy, sell, or you're just learning how real estate works, here’s a simple breakdown of what happens during an appraisal, how it affects your deal, and what you should (and shouldn’t) worry about.
🏡 What Is a Home Appraisal?
A home appraisal is an independent estimate of what a property is worth, completed by a licensed professional appraiser.
It’s required by most lenders before they’ll approve a mortgage — because they want to make sure the home is actually worth what the buyer is paying.
The key idea:
Lenders won’t loan more than the appraised value of the home.
So if the home is under contract for $500,000, but the appraisal comes in at $480,000 — we have a problem (more on that below 👇).
🔍 What Does the Appraiser Look At?
Appraisers don’t care about how cute the furniture is or how well the home is staged — they’re looking at hard facts and comparable sales.
Here’s what they typically consider:
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Square footage and layout
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Lot size and location
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Condition of the home
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Recent renovations or upgrades
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Comparable properties ("comps") sold recently nearby
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Market trends and neighborhood demand
They’ll also check for obvious safety issues, especially if the buyer is using FHA or VA financing.
📋 How Long Does It Take?
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The actual walkthrough takes about 15–30 minutes
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The report takes 3–7 days (sometimes longer in busy markets)
Once it’s done, the lender and the buyer will receive a copy of the report with the appraised value.
⚖️ What Happens If It Appraises At or Above the Purchase Price?
🎉 Great news — you’re good to go!
The lender is satisfied, the financing can move forward, and the sale continues on track.
❗ What Happens If It Appraises Below the Purchase Price?
This is where things get tricky.
If the appraisal comes in low, you have a few options:
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Renegotiate the price with the seller
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Make up the difference in cash
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Challenge the appraisal (rare, but sometimes possible)
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Walk away, depending on the contract terms
As your agent, my job is to guide you through these decisions and help you protect your investment — whether you’re buying or selling.
🧠 Pro Tip: Sellers Should Care About This Too
If you’re selling, it’s smart to:
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Price realistically based on comps
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Highlight upgrades and improvements for the appraiser
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Make sure the home is clean and easy to access
A great offer can fall apart if the appraisal doesn’t support it — and I always want my clients to be prepared for that step.
Appraisals can feel like a mysterious part of the process — but they’re just one more checkpoint to make sure things stay fair and balanced.
If you’re curious about how appraisals might impact your future sale or purchase, or you just want help understanding how they work locally — I’d love to be your go-to resource.
Whether you’re just curious or ready to dive in, I’d love to help you navigate the process with confidence. Call/text me at 773-865-5661 or email me at [email protected]
