When selling your home, the appraisal is an important step. A licensed appraiser evaluates your property to estimate its market value. Lenders use this report to confirm that the home is worth the buyer’s mortgage amount.
Why It Matters
An appraisal helps set a realistic price. It’s based on your home’s features, location, and recent sales of similar properties. If the appraisal is lower than the sale price, the buyer’s financing could be affected. Knowing how it works can help you avoid issues.
What Appraisers Look At
An appraiser will assess:
- Size and layout – Total square footage, number of bedrooms and bathrooms.
- Condition – Age of the home, recent updates, overall maintenance.
- Exterior and lot – Landscaping, foundation, roof, and curb appeal.
- Comparable sales – What similar homes in your area have sold for.
- Market trends – Supply, demand, and economic conditions.
When It Happens
Most appraisals happen after the buyer secures financing. The lender orders it, but the buyer pays for it. Some sellers get a pre-listing appraisal to help price their home more accurately.
How to Prepare
To help your home appraise well:
- Fix visible repairs, like leaky faucets or chipped paint.
- Clean and declutter to make the space look well cared for.
- Keep a list of upgrades, like a new roof or HVAC system.
- Tidy up the yard and exterior to give a good first impression.
What If the Appraisal Comes in Low?
If the appraisal is lower than the sale price, options include:
- Lowering the price to match the appraised value.
- The buyer covering the difference in cash.
- Disputing the appraisal with more market data.
- Requesting a second appraisal, though this isn’t always approved.
Being prepared for this step can help keep the sale on track. Knowing how appraisals work allows you to price your home correctly and avoid last-minute surprises.
