Whether you’re buying or selling a home, the appraisal process plays a critical role in the transaction. But what exactly is a home appraisal, and why does it matter so much?
What is a Home Appraisal?
A home appraisal is an unbiased, professional opinion of a home’s value, typically required by lenders during the mortgage process. It ensures the lender isn’t giving out more money than the home is worth.
Who Pays for the Appraisal?
Typically, the buyer pays for the appraisal, which usually costs between $300–$500, although it may vary by region.
What Does the Appraiser Look At?
- Square footage and layout
- Condition of the home
- Comparable home sales (“comps”) in the area
- Upgrades and renovations
- Lot size and neighborhood
How Long Does it Take?
The appraisal inspection itself takes 30 minutes to a few hours, but the report usually takes 3–7 business days.
Why Appraisals Can Delay Closings
If the appraised value comes in lower than the sale price, it can jeopardize the loan. In that case, buyers may need to renegotiate the price, increase their down payment, or the deal could fall through.
Tips for Sellers
- Clean and declutter before the appraisal
- Provide a list of upgrades and receipts
- Make small repairs beforehand
Tips for Buyers
- Understand it protects your investment
- Ask your agent for recent comps
- Don’t panic if the value is slightly off—your agent can help you negotiate
Understanding the appraisal process helps prevent surprises and smooths the path to closing.