What Happens During an Appraisal

An appraisal typically takes place after a property is under contract and is ordered by the lender as part of the loan approval process. During the appraisal, a licensed appraiser visits the property to gather information used to determine its current market value.

The appraiser observes the home’s layout, size, condition, and features, takes measurements and photographs, and notes any visible upgrades or improvements. This information is then compared to recent sales of similar properties in the surrounding area, commonly referred to as comparable sales or “comps.”

Appraisals generally involve:

• A brief on site visit to document the property
• Review of recent comparable sales in the market
• Analysis of location, neighborhood, and market conditions
• Preparation of a written appraisal report

After the on site visit, the appraiser completes a formal report that is delivered to the lender. The report summarizes the data used and provides an opinion of value based on current market evidence. Once reviewed by the lender, a copy is typically made available to the borrower.

It is important to understand that appraisal outcomes can vary based on market conditions, available comparable sales, and timing. A value that differs from expectations does not reflect the quality of the home or the buyer’s decision, but rather the appraiser’s interpretation of market data at that point in time.

This content is provided for educational purposes only and does not constitute legal, real estate, or valuation advice.