A home appraisal is an independent opinion of market value prepared for the lender. The appraiser considers the property, comparable sales, location, and market conditions.
Why it matters
The lender uses the appraisal to confirm that the property supports the loan. A low value can affect financing, negotiation, or the cash required.
If a home is under contract for $500,000 but appraises at $485,000, the parties may renegotiate, the buyer may add cash, or a contract contingency may provide another option.
What to remember
- ✓An appraisal is not a comprehensive home inspection.
- ✓The buyer does not choose the appraised value.
- ✓Some loan programs include additional property standards.
- ✓A reconsideration may be possible when credible information was missed.
I’ll help you understand the result, the contract timeline, and the options before you make a decision.
This guide is for education, not a loan quote or legal, tax, insurance, or financial advice. Eligibility and transaction details vary. Confirm your options with the appropriate licensed professional.