22 · Ask Andrew · Buying
How does a home appraisal work?
A straight answer on who orders the appraisal, who pays for it, how the value is determined, and what happens if it comes in low.
The short answer
An appraisal answers what the home is worth, while the inspection answers what its condition is. It is ordered by the lender, paid by the buyer at closing, and performed by an independent appraiser using recent comparable sales, size, location, and visible condition.
What the appraiser does
The appraisal is ordered by the lender and paid by the buyer at closing, and it is performed by an independent appraiser using recent comparable sales, size, location, and visible condition. Preparation is about access and information, not influence, so the appraiser can see the home and the details that support its value.
If the appraisal comes in low
If the appraisal comes in low, the options are to read the report and renegotiate, cover the gap, challenge the value with better comparables, or walk under the appraisal contingency. An appraisal is not a guarantee of sale price, so the report itself is the starting point for any of those options.
Next step
Plan for the appraisal before it comes in.
Bring your offer situation and we will walk through how the appraisal works, what to expect on closing day, and what your options are if the value comes in low.
- Phone
- 623-400-5957
- andrew@clearlysold.com