Mortgage Appraisal
The lender's independent assessment of the property's value
The mortgage appraisal is required by your lender to confirm the home is worth at least what you're paying. The lender won't loan more than the appraised value—this protects them (and you) from overpaying. Your buyer's agent will coordinate scheduling with the seller or seller's agent.
What to Expect
Lender Orders It
Your lender orders the appraisal from a licensed appraiser—you don't choose who does it
You Pay for It
Typically $400-$600, usually rolled into closing costs
Agent Coordinates Access
Your buyer's agent works with the seller/seller's agent to schedule the appointment
The Appraisal Process
- Appraiser inspects the property interior and exterior
- Takes photos and measurements of the home
- Reviews comparable recent sales in the area
- Evaluates neighborhood and market conditions
- Prepares a formal report with the appraised value
- Report is sent to your lender (and shared with you)
Possible Outcomes
Appraised at or Above Purchase Price
Best case scenario—you proceed as planned with no changes needed
Appraised Below Purchase Price
You may need to renegotiate, bring more cash, or walk away
If the Appraisal Comes in Low
A low appraisal doesn't have to kill the deal. You have options:
- • Negotiate with the seller to lower the price to appraised value
- • Pay the difference in cash (lender only loans against appraised value)
- • Challenge the appraisal if there are errors or missing comparables
- • Walk away if you have an appraisal contingency
- • Split the difference with the seller
Appraisal Contingency
If your offer included an appraisal contingency, you can walk away with your deposit if the appraisal comes in too low. Without this contingency, you may be obligated to proceed or lose your earnest money.
Typical Timeline
The appraisal typically takes 1-2 weeks from when your lender orders it. The actual property visit takes 30-60 minutes, but the appraiser needs time to research comparable sales and prepare the report. Your lender will share the results with you.