A Guide to Home Appraisals

Understanding the home appraisal process is essential for buyers and sellers. An appraisal is a professional, unbiased estimate of a property’s market value, typically required by lenders to ensure the price aligns with comparable homes in the area. Conducted by licensed appraisers, this step protects all parties by confirming the home’s value.

For most mortgage transactions, appraisals are mandatory to calculate the loan-to-value (LTV) ratio. Cash buyers, though not required, may still benefit from appraisals to avoid overpaying. Appraisers evaluate factors such as condition, location, and recent renovations by referencing comparable sales data. These assessments can be done in person, through hybrid methods, or remotely.

Communication with appraisers is allowed but must remain ethical—no influence or manipulation is permitted. If the appraised value differs from the purchase price, it can impact financing. Including an appraisal contingency in your agreement allows flexibility to renegotiate or withdraw.

Buyers are entitled to a free copy of the appraisal report. If errors occur, you can request a reconsideration of value or file a complaint. Consulting with a real estate professional ensures you’re informed about local regulations and practices.