Once you’re under contract, your lender orders an appraisal to confirm the home is worth what you’ve agreed to pay. Here’s what that process actually involves.
What the Appraiser Looks At
A licensed appraiser inspects the home’s condition, size, and features, then compares it to recent sales of similar homes nearby to arrive at a value.
If the Appraisal Comes In Low
- Negotiate with the seller to lower the price
- Bring additional cash to cover the gap
- Challenge the appraisal with additional comparable sales
- Walk away if you have an appraisal contingency in your contract
Why It Matters
Your loan amount is based on the lower of the purchase price or appraised value, so a low appraisal can affect how much you need to bring to closing.
Have questions about your specific loan scenario? Reach out to The House Hunters Group at 321-501-9579.