Published October 19, 2026

What to Expect During a Home Appraisal

Written by Danny Gomes

Buying or selling a home involves several important steps, and the appraisal is often one of the most closely watched.

For buyers, an appraisal can affect financing and the amount a lender is willing to lend. For sellers, it can influence whether a transaction stays on track at the agreed contract price. Because of that, it is helpful to understand what an appraisal is, what an appraiser may review, and what happens if the value does not align with the purchase price.

An appraisal is not a home inspection, and it is not the same as a comparative market analysis prepared by a real estate professional. It is an opinion of value prepared for a specific purpose, often in connection with a mortgage loan.

Here is what buyers and sellers should know about the home appraisal process.

What Is a Home Appraisal?

A home appraisal is a professional opinion of a property’s value at a specific point in time.

In many financed transactions, the buyer’s lender orders an appraisal to help determine whether the property supports the loan amount being requested. The lender wants to confirm that the home’s estimated value is consistent with the purchase price and the loan terms.

The appraiser is typically an independent professional who reviews the property, relevant market data, and recent comparable sales before preparing an appraisal report.

An appraisal does not guarantee what a buyer will pay, what a seller will accept, or what the home would sell for in every situation. It is an opinion of value based on the information available and the purpose of the assignment.

Why Do Lenders Commonly Require an Appraisal?

When a buyer is using financing, the home often serves as collateral for the loan.

The lender may require an appraisal to help evaluate the property’s estimated value before finalizing the loan. If the buyer defaults, the lender wants to understand the value of the asset securing the mortgage.

An appraisal may help the lender assess:

Whether the property appears to support the agreed purchase price
Whether the requested loan amount aligns with the estimated value
Whether the property meets certain lender or loan-program requirements
Whether there are visible conditions that may need additional review

Requirements can vary by lender, loan program, property type, and transaction.

How Is an Appraisal Different From an Inspection?

An appraisal and a home inspection are different services with different purposes.

Home Appraisal

An appraisal focuses on an opinion of value. The appraiser may observe the home’s condition, features, size, layout, location, and market context as part of the valuation process.

The appraiser is not typically performing a detailed evaluation of every system or identifying every repair issue.

Home Inspection

A home inspection is generally intended to help the buyer understand the property’s condition. An inspector may review visible and accessible components such as the roof, foundation, electrical system, plumbing, HVAC, appliances, and other areas.

An inspection may identify maintenance concerns, safety issues, or repairs that a buyer may want to investigate further.

A home can appraise at or above the contract price and still have inspection concerns. Likewise, a home can be in good condition but appraise below the contract price because of market data or comparable sales.

How Is an Appraisal Different From a Comparative Market Analysis?

A comparative market analysis, often called a CMA, is typically prepared by a real estate professional to help a seller or buyer understand current market positioning.

A CMA may review:

Recent comparable sales
Active listings
Pending sales
Expired or withdrawn listings
Property condition and features
Current buyer demand and competition

An appraisal also considers comparable sales and market data, but it is prepared by an appraiser for a specific valuation purpose. The format, standards, intended use, and lender requirements may differ.

Both can be useful, but they are not interchangeable.

What May an Appraiser Review?

During the appraisal process, the appraiser may review the property and relevant market information.

The appraiser may consider factors such as:

Property location
Lot size and characteristics
Home size and layout
Number of bedrooms and bathrooms
Age and overall condition
Updates and improvements
Functional features and design
Garage, parking, storage, or outdoor space
Visible deferred maintenance
Recent comparable sales
Current market conditions
Differences between the subject property and comparable homes

The appraiser may take photos, measurements, and notes during the visit. They may also review public records, listing information, permits where available, and other relevant data.

Not every feature adds the same amount of value in every market. A renovation, view, lot feature, or upgraded system may be considered differently depending on the property and available comparable sales.

What Happens During the Appraisal Visit?

The appraisal visit is usually a relatively straightforward property walkthrough.

The appraiser may:

Walk through the interior and exterior of the home
Observe the home’s condition and features
Take photos
Measure the property or verify square footage
Note upgrades, additions, or visible concerns
Review the lot, garage, exterior features, and surrounding area

The appraiser may not need the buyer or seller to be present, depending on the property and access arrangements. In many cases, the listing agent coordinates access for the appraiser.

The visit itself is only one part of the process. The appraiser also needs time to analyze comparable sales, make adjustments for meaningful differences, and prepare the report.

What Happens After the Appraisal?

After the property visit, the appraiser completes the valuation analysis and submits the report to the lender or other intended client.

The lender reviews the appraisal as part of the financing process. The buyer may receive a copy through the lender, depending on the transaction and applicable requirements.

There are several possible outcomes.

The Appraisal Supports the Contract Price

If the appraised value is at or above the contract price, the transaction may continue toward closing, assuming other financing, inspection, title, and contract requirements are satisfied.

An appraisal at or above the contract price does not automatically mean the buyer’s loan is fully approved. The lender may still need to complete underwriting and review other documentation.

The Appraisal Comes in Above the Contract Price

If the appraised value is higher than the contract price, the buyer does not automatically receive the difference in cash or gain immediate access to that amount.

The purchase price remains the amount agreed to in the contract unless the parties negotiate a change. The lender will generally base financing on its applicable loan guidelines and the lower of the purchase price or appraised value, depending on the loan program.

The Appraisal Comes in Below the Contract Price

If the appraisal comes in below the contract price, the buyer and seller may need to decide how to proceed.

Possible options may include:

Renegotiating the purchase price
The buyer bringing additional funds to closing, if permitted and appropriate
The seller reducing the price
The parties meeting somewhere in the middle
Reviewing whether a reconsideration of value may be appropriate
Ending the transaction if contract terms allow

The available options depend on the contract, financing, appraisal contingency, lender requirements, and the willingness of both parties to negotiate.

What Is a Reconsideration of Value?

In some situations, a buyer, seller, lender, or real estate professional may believe the appraisal did not consider relevant information.

A reconsideration of value is a process through which additional information may be submitted for review. This may include recent comparable sales, corrections to factual details, or information about the property that may not have been considered.

A reconsideration of value is not a guarantee that the appraised value will change. The lender and appraiser determine whether additional information is relevant and whether any revision is appropriate.

If you believe there may be an issue, work through the appropriate channels with your lender and real estate professional rather than contacting the appraiser directly without guidance.

Seller Tips for Appraisal Day

Sellers cannot control the final appraised value, but they can help ensure the property is accessible and presented clearly.

Before the appraisal visit:

Make sure the home is clean and accessible
Provide access to all rooms, garages, sheds, and relevant areas
Secure pets or make arrangements for them
Replace burned-out light bulbs where practical
Address obvious safety concerns if possible
Prepare a list of meaningful improvements and approximate completion dates
Gather permits, warranties, or receipts for major work if available
Make sure the appraiser can access the property without delays

A list of improvements can be helpful, especially when updates may not be obvious during a brief walkthrough. However, improvements do not guarantee a specific value increase.

Buyer Tips for the Appraisal Process

Buyers can prepare by understanding how the appraisal fits into the financing timeline.

Consider these steps:

Stay in contact with your lender about appraisal scheduling and timing
Avoid major financial changes while your loan is in underwriting
Review the appraisal report when it becomes available through the appropriate process
Ask your lender or agent questions if you do not understand the outcome
Be prepared to discuss options if the value comes in below the contract price
Keep your overall budget and walk-away limit in mind

The appraisal is one milestone in the transaction. It is important, but it is not the only factor that determines whether a purchase will close.

Appraisal-Day Checklist

For sellers:

Confirm access instructions with your agent.
Make sure all rooms and exterior areas are accessible.
Secure pets.
Clean and organize the home.
Prepare a list of major improvements.
Gather relevant permits or receipts if available.
Address obvious safety or access issues.

For buyers:

Confirm with your lender that the appraisal has been ordered.
Stay responsive to lender requests.
Avoid opening new credit accounts or making major purchases during underwriting.
Review the report when available.
Discuss next steps with your lender and agent if the value is below contract price.

Common Home Appraisal Misconceptions

“The Appraiser Sets the Sale Price”

The appraiser does not set the sale price. The buyer and seller agree on the contract price. The appraisal provides an opinion of value for a specific purpose, often related to financing.

“A Clean Home Will Automatically Appraise Higher”

A clean, accessible home can help the appraiser observe the property clearly, but cleanliness alone does not determine value. Market data, comparable sales, condition, location, and property features all matter.

“Every Renovation Adds Its Full Cost to the Value”

Improvements may increase appeal or marketability, but they do not always add value equal to their cost. The impact depends on the project, the property, buyer preferences, and comparable sales.

“A Low Appraisal Means the Deal Is Over”

A low appraisal can create a challenge, but it does not automatically end the transaction. Buyers and sellers may have options depending on the contract, financing, and willingness to negotiate.

“An Appraisal Is the Same as an Inspection”

An appraisal focuses on value. An inspection focuses on property condition.