Facebook
X
Pinterest
Copy Link
You’ve found the perfect home and your offer is accepted—but before closing, your lender will likely require an appraisal.
What is an appraisal?
An appraisal is an unbiased estimate of a property’s fair market value, completed by a licensed professional. It ensures the price you’re paying matches the home’s actual worth.
Why lenders require it
Since most buyers use financing, lenders want to confirm the home is worth at least the amount they’re lending. It protects both you and the bank.
What if the appraisal is low?
If the appraised value comes in lower than the purchase price, there are a few options:
-
Renegotiate the price with the seller.
-
Pay the difference out of pocket.
-
Cancel the contract (if you included an appraisal contingency).
Why it matters for buyers
An appraisal helps prevent overpaying for a property and ensures your investment is sound.
Takeaway: An appraisal is a safeguard in the buying process—confirming the home is worth what you’re paying.
If you’re preparing to buy, I can guide you through how appraisals fit into the overall process.
