What Is an Appraisal?

A home appraisal is an independent assessment of a property’s market value, performed by a licensed appraiser. Appraisals are typically required by lenders to confirm that a property’s value supports the loan amount being requested.

Unlike inspections, appraisals are focused on value, not condition details. The appraiser’s role is to evaluate whether the agreed upon purchase price aligns with current market data.

Appraisers generally consider factors such as:

• Recent comparable home sales in the surrounding area
• The home’s size, layout, and overall features
• Property condition as it relates to value
• Location, neighborhood characteristics, and market trends

The appraisal helps establish an objective value based on market evidence rather than opinion or negotiation.

Appraisals matter because they:

• Help prevent overpaying relative to the market
• Influence loan approval and final loan amount
• Support fair and consistent lending decisions

An appraisal reflects market conditions at a specific point in time. It does not guarantee future value, nor does it assess every physical aspect of the property. Its purpose is to provide a standardized valuation used for lending decisions.

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