The Home Appraisal Process: What to Expect

The Home Appraisal Process: What to Expect

You've agreed on a price, but will the bank agree? The appraisal is the final hurdle in most real estate transactions.

How the Appraiser Determines Value

An appraiser is an independent third party who looks at:

1. Comparables (Comps): Similar homes sold within the last 6 months in the same town.
2. Condition: The age of the roof, HVAC systems, and overall maintenance.
3. Upgrades: A finished basement in Arlington or a gourmet kitchen in Belmont adds significant value.

The Appraisal Gap

In a market where prices are rising 10% YoY, sometimes the data 'lags' the reality. If the appraisal comes in low, you have three options:

• The buyer pays the difference in cash.
• The seller lowers the price.
• They meet in the middle.