When you’re buying or selling a home, one of the most important steps is the appraisal. An appraisal is an estimate of a property’s market value, and it’s used by lenders to determine how much money they’re willing to lend you.
What is a Home Appraisal?
A home appraisal is conducted by a licensed appraiser. The appraiser will review the property’s:
Location
Condition
Size
Comparable property sales
They will then produce a report that includes:
An opinion of market value
Supporting data and analysis
Why Appraisals Matter
For Buyers:
You want the appraisal to match or exceed the purchase price.
A low appraisal could mean you must pay the difference or renegotiate.
For Sellers:
A high appraisal helps you justify your asking price.
It increases your chances of a smooth sale.
Key Things to Know About Appraisals
Appraisals are not always exact. Market fluctuations can affect value.
They are opinion-based. Another appraiser might have a different valuation.
They aren’t binding. A lender can still reject the appraised value.
Tips for Navigating the Appraisal Process
For Buyers:
Provide details like purchase price and comparable sales.
Be available to answer questions during the appraisal.
For Sellers:
Ensure the home is clean and well-maintained.
Make all necessary repairs before the appraiser arrives.
Offer full access to the property.
What if the Appraisal Comes in Low?
Negotiate: Ask the seller to reduce the price.
Get a second opinion: Request another appraisal.
Work with a real estate agent: They can help support your case or find a workaround.
What if the Appraisal Comes in High?
Good news: You may qualify for better financing terms.
Caution: If too high, lenders may not fund more than the actual market value.
The Role of a Real Estate Agent in the Appraisal
A good real estate agent can help you:
Understand the appraisal process
Gather key information for the appraiser
Negotiate if the value is lower than expected
Select an experienced appraiser
Schedule the appraisal for the best timing
Be present during the appraisal
Review and interpret the appraisal report
A home appraisal is a vital part of the buying or selling process. Understanding how it works and having the right professionals by your side can help you navigate it smoothly and get the best outcome.
Contact The Temple Team at 704-235-3000 or [email protected] for a free consultation or guidance throughout your appraisal and real estate journey. Whether you're just starting or ready to sell, we’re here to help every step of the way.
