Once an offer is accepted and the home moves into the closing phase, an appraisal often becomes the next important checkpoint. It’s a critical step for both buyers and sellers. Lenders need it to confirm a home’s value, and buyers want to be sure they’re not overpaying. On the other hand, sellers want the appraised value to align with the agreed-upon sale price. Understanding how this part of the transaction works helps reduce surprises and keeps things moving smoothly.
Why the Appraisal Matters
The appraisal serves as an independent evaluation of a home’s market value. It’s conducted by a licensed appraiser who is not affiliated with the buyer, seller, or real estate agents involved. In most cases, it’s required by the lender to protect their financial interest in the transaction. If the buyer defaults on the loan, the lender wants to ensure the property has enough value to cover the mortgage amount.
However, the appraisal affects more than just financing. If the appraised value comes in lower than the sale price, it can lead to delays or negotiations. Buyers may need to bring more money to the table, or the seller may be asked to adjust the price. Either way, this part of the process carries weight.
However, the appraisal affects more than just financing. If the appraised value comes in lower than the sale price, it can lead to delays or negotiations. Buyers may need to bring more money to the table, or the seller may be asked to adjust the price. Either way, this part of the process carries weight.
How the Appraiser Is Chosen
Buyers don’t select the appraiser directly. Once the lender initiates the process, they typically work through an appraisal management company (AMC) to assign a local professional. This structure is in place to avoid any conflicts of interest. The appraiser is expected to deliver an unbiased, research-based opinion of value.
Appraisers working through a lender must be licensed in the state and follow strict guidelines under the Uniform Standards of Professional Appraisal Practice (USPAP). Their experience in the local market and familiarity with recent sales play a big role in how they form their conclusions.
Appraisers working through a lender must be licensed in the state and follow strict guidelines under the Uniform Standards of Professional Appraisal Practice (USPAP). Their experience in the local market and familiarity with recent sales play a big role in how they form their conclusions.
What Happens Before the Visit
Before visiting the home, the appraiser will begin gathering data. They review recent sales of comparable properties (often called “comps”) in the neighborhood, paying close attention to similar size, age, location, and features. They’ll also look at public records to confirm lot size, square footage, and past transaction history.
While this initial work helps set the framework, the physical inspection is where the appraiser verifies details and evaluates the home in person.
While this initial work helps set the framework, the physical inspection is where the appraiser verifies details and evaluates the home in person.
The On-Site Inspection
The inspection usually takes 30 minutes to an hour, depending on the size and condition of the home. During this visit, the appraiser walks through each room, takes measurements, photographs key features, and notes any upgrades or repairs. They will assess the overall quality of construction, the condition of finishes, and how the property compares to similar homes nearby.
They also evaluate the exterior, including the roof, siding, windows, and landscaping. The condition of outbuildings like garages, sheds, or guest houses can also influence value. They aren’t there to inspect systems like plumbing or electricity, but they do take note of visible issues such as peeling paint, signs of damage, or poor maintenance.
For sellers, a clean and well-presented home can help make a strong impression. While cleanliness doesn’t directly impact the appraised value, it can subtly influence the perception of upkeep and care.
They also evaluate the exterior, including the roof, siding, windows, and landscaping. The condition of outbuildings like garages, sheds, or guest houses can also influence value. They aren’t there to inspect systems like plumbing or electricity, but they do take note of visible issues such as peeling paint, signs of damage, or poor maintenance.
For sellers, a clean and well-presented home can help make a strong impression. While cleanliness doesn’t directly impact the appraised value, it can subtly influence the perception of upkeep and care.
What the Appraiser Looks For
Several factors go into the final value, including:
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Square footage: Finished livable space is one of the biggest contributors to value. Basements and attics are typically valued differently from main floor areas.
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Number of bedrooms and bathrooms: More functional space often equals higher value, especially when compared to nearby homes.
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Upgrades and improvements: Recent renovations to kitchens, bathrooms, roofing, or major systems (like HVAC) add value. Quality matters more than quantity.
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Lot size and usability: Larger or better-positioned lots (corner lots, cul-de-sacs) may earn a value boost.
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Neighborhood trends: The direction of the local market—rising or leveling—can shape the final opinion of value.
While personal taste or decor style doesn’t influence the report, structural updates and thoughtful renovations definitely do.
After the Visit: The Report
Once the inspection is complete, the appraiser finalizes their report. This document includes:
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A detailed description of the property
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Photos from the visit
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A map of the location
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A breakdown of comparable sales
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Notes on the local market
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A final value conclusion
This report is sent to the lender, who then shares it with the buyer. In most cases, the appraisal is completed within a week, but turnaround times may vary based on scheduling and market demand.
What Happens If the Value Matches or Exceeds the Price
If the appraised value is equal to or higher than the sale price, the process moves forward without issue. The lender approves the loan amount, and the buyer continues toward closing with confidence.
Sellers can also feel reassured in this scenario. A strong appraisal confirms that the home is priced appropriately for current conditions, supporting the sale's value.
Sellers can also feel reassured in this scenario. A strong appraisal confirms that the home is priced appropriately for current conditions, supporting the sale's value.
What Happens If the Value Comes in Low
A low appraisal can be frustrating, but it’s not uncommon. When this happens, there are a few ways to proceed:
- Renegotiate the sale price: The buyer may ask the seller to adjust the price to match the appraised value.
- Cover the gap: The buyer might choose to pay the difference out of pocket.
- Request a reconsideration: If the buyer or agent believes the appraisal missed key information or comps, they can submit additional data to the lender for review.
- Cancel the contract: If neither side agrees to adjust, the contract may include a contingency that allows the buyer to walk away.
Move Forward With Confidence in West Hartford
Whether you're preparing to sell or actively searching for the right place to call home, understanding how the home appraisal process fits into your larger real estate journey is key. When you're working with professionals who know West Hartford’s neighborhoods, values, and market shifts inside and out, you're in a stronger position from the start. The Marshall + Ostop Team offers that kind of insight, grounded in experience and focused on results. When you're ready to take the next step, lean on local experts who can help you navigate each part of the process with clarity and confidence. Contact Paula Fahy Ostop, Ellyn Marshall, and the Marshall + Ostop Team today to discuss your real estate goals and let them assist you in making your dreams a reality!
*Header image courtesy of Pexels
*Header image courtesy of Pexels
