An appraisal is a professional assessment of the property’s value, required by your lender to ensure the home is worth the amount you’re borrowing. It’s an essential step in the mortgage approval process.
APPRAISER’S ROLE
An appraiser evaluates the property and compares it to similar homes in the area to determine its fair market value.
FINANCIAL IMPACT
If the appraisal comes in lower than the agreed purchase price, you may need to negotiate with the seller, increase your down payment, or reconsider your offer. Be prepared for the upfront cost of upwards of $400+ for the appraisal.
APPRAISAL REPORT
Review the appraisal report carefully. If you have concerns or questions, discuss them with your real estate agent and lender.
