What an Appraisal Reveals


For many first-time homebuyers, the appraisal is one of the most nerve‑racking steps in the homebuying journey. Even when a home looks perfect, its market value may not match the agreed‑upon sales price, impacting your loan, negotiations and timeline.


An appraisal is an independent, professional assessment of the property’s fair market value. It examines a number of key elements, including:

  • Home size and number of rooms
  • Type of construction
  • Interior and exterior conditions
  • Comparable home sales in the area

If the appraisal comes in low, the sales contract may need renegotiation. You may choose to pay the difference, ask the seller to adjust the price or walk away entirely if your contract includes an appraisal contingency. A low appraisal can feel like a setback, but it’s actually a safeguard against overpaying.


When the appraisal supports the sales price, your loan moves forward with confidence. You’ll receive a copy of the appraisal report within three business days, giving you clear insight into how the property’s value was determined.

 

GOOD TO KNOW
The appraisal is separate from a home inspection, which evaluates condition and safety rather than market value.



Learn more by signing up for our free homebuyer education course!

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