When your offer is accepted and you’re officially “under contract,” one of the next big milestone is the appraisal—a step that can make or break your home purchase.

What Is an Appraisal?

An appraisal is an unbiased opinion of a home’s value, completed by a licensed appraiser hired by your lender. The goal is simple: make sure the home is worth what the bank is lending.

Appraisers visit the property to verify it’s safe, livable, and accurately represented. They also compare it to similar recently sold homes nearby (known as comps) and make value adjustments based on features, condition, and upgrades.

Fun fact: The only thing legally required to work in an “as is” appraisal is the smoke detector—everything else is up to the appraiser’s professional judgment.

Why It Matters

If the appraisal comes in lower than your agreed purchase price, the lender won’t loan more than that amount—leaving a gap between what the seller wants and what the bank is willing to finance.

That’s when tough decisions happen: you can renegotiate with the seller, challenge the appraisal, increase your down payment, or walk away if you have an appraisal contingency.

What You Can Do as a Buyer

–Work with your agent and lender early—make sure the appraiser has access to comparable sales and a list of upgrades.
–Understand your options if the value comes in low—appeal, negotiate, or explore making up the difference.
–Stay calm—a low appraisal doesn’t always mean the deal is dead. With the right guidance, many transactions still move forward successfully.

Behind the Scenes

Appraisers must remain independent, which means your agent can’t directly influence them—but we can help ensure they have the most accurate information. That’s where an experienced agent makes all the difference.

The appraisal is a critical part of your home-buying journey, but it doesn’t have to be stressful when you understand how it works. If you’re thinking about buying, or just want to know what to expect once you’re under contract, reach out—I’m always happy to walk you through it step by step.