The Ultimate Guide to Home Appraisals: 7 Secrets You Need to Know

When you’re buying a home and securing financing, one of the steps you’ll encounter is the appraisal. It’s a key part of the process, but it’s just one piece of the puzzle. Let me walk you through it and explain how it fits into the bigger picture of buying your home.

Why Do You Need an Appraisal?

In short, an appraisal is an unbiased estimate of the home’s market value. If you’re financing your home purchase, the lender will almost always require an appraisal to make sure the price you’re paying is in line with the home’s actual value. This helps both you and the lender ensure that the loan is appropriate for the home.

For those paying cash, an appraisal isn’t required, but it can still be a good idea. It can give you peace of mind, ensuring you’re not overpaying.

What Does an Appraiser Do?

An appraiser’s job is to determine the home’s value by looking at a few key factors:

• Condition of the property
• Upgrades or improvements made
• Location of the home and the surrounding area
• The size and layout of the home
• Comparable sales of similar homes nearby

They gather all this information and compare it to recently sold homes in the area to arrive at a fair value. Think of it as an independent second opinion to help ensure you’re not overpaying.

Can I Talk to the Appraiser?

Yes, absolutely! I can share helpful details about the home with the appraiser, such as any recent improvements or unique features that might affect the value. However, I want to be clear: While I can provide relevant facts, I can’t (and wouldn’t) try to influence the appraiser’s judgment. They are professionals who base their opinion on solid data, and they must remain neutral in their evaluation.

What Happens If the Appraisal Comes In Low?

Once in a while, an appraisal will come in lower than the agreed purchase price. This can create some challenges, but there are options. If this happens, the lender may not approve the full amount of your loan, which means you’ll need to consider next steps.

In Oklahoma, our purchase agreements include an “appraisal contingency” as part of the financing supplement. This allows us to go back to the seller and renegotiate the price or even walk away if necessary. 

Will I Get a Copy of the Appraisal?

Yes, you will! Thanks to the Equal Credit Opportunity Act, the lender is required to send you a copy of the appraisal once it’s completed. The only time you might not receive one is if the lender decides to waive the appraisal altogether—which is pretty rare.

What if I Disagree with the Appraisal?

If you feel the appraisal missed something important or isn’t reflective of the home’s true value, you can request a “Reconsideration of Value” (ROV). I’ll help you gather any additional information you might need, such as recent comparable sales or updates to the home, to make your case. If the appraiser’s decision still doesn’t sit right, there’s always the option to file a complaint with the Oklahoma Real Estate Appraiser Board.

Key Takeaways

• An appraisal is a required step when financing a home, but it’s just one part of the process.
• If you’re paying cash, an appraisal is optional, though there are instances when I recommend it.
• Appraisers look at things like the home’s condition, location, and comparable sales to determine its value.
• If the appraisal comes in low, we have options to renegotiate or move forward in a different way.
• You’re entitled to a copy of the appraisal, and if you feel it’s incorrect, we can address it together.

I know the appraisal process can be a little intimidating, but that’s exactly why I’m here—to guide you through every step and make sure it all runs smoothly. And if you’re working with a tried-and-true local lender, that further simplifies the process. If you’ve got questions or want to dive deeper, just reach out. I’m always here to help!

Want to learn more? Download the full Consumer Guide to the Appraisal Process from the National Association of REALTORS®.