What Sellers Should Know About Appraisals

Susie Braskett
Mar 2
2 min read

When you’re selling your home, the appraisal can feel like a make-or-break moment. Even if you’ve accepted a strong offer, the deal often depends on the home appraising at or above the contract price.

Here’s what every seller should understand about the appraisal process.

📋 What Is a Home Appraisal?

A home appraisal is a professional opinion of your property’s market value. It is typically ordered by the buyer’s lender to ensure the home is worth the loan amount being requested.

The lender wants to confirm they are not lending more than the property’s value.

🏠 How Appraisers Determine Value

Appraisers evaluate several factors, including:

• Recent comparable sales in the area

• Square footage and layout

• Condition and upgrades

• Lot size and location

• Market trends

They compare your home to similar properties that recently sold, not just those currently listed.

🧹 How Sellers Can Prepare

While you can’t control the market, you can control presentation.

Before the appraisal:

• Ensure the home is clean and accessible

• Complete agreed-upon repairs

• Provide a list of recent upgrades

• Share any permits for renovations

A well-maintained home supports a stronger valuation.

📉 What Happens If the Appraisal Comes in Low?

If the appraisal is lower than the agreed purchase price, several options exist:

• The buyer may request a price reduction

• The buyer may bring additional cash

• The seller may challenge the appraisal with additional data

• Both parties may renegotiate

• The deal may fall through if no agreement is reached

Low appraisals are more common in rapidly rising markets.

💡 Important Tip for Sellers

Overpricing your home at the start can increase the risk of appraisal issues. Even if a buyer agrees to a higher price, the lender relies on comparable sales.

Pricing strategically from the beginning helps avoid surprises later.

⏳ Timeline Considerations

The appraisal usually takes place after the inspection and once the buyer’s loan process is underway. Delays in appraisal scheduling can affect closing timelines.