Appraisals can be one of the most stressful parts of the transaction for both buyers and sellers. As a Realtor, setting clear expectations upfront helps avoid surprises that could derail your deal. Here are common appraisal FAQs you can share with your clients to build trust and confidence during the process.

❓ What is an appraisal?

An appraisal is an unbiased professional opinion of a home’s value, conducted by a licensed appraiser. Lenders require appraisals to ensure the home’s value supports the loan amount requested.

❓ Why is the appraisal important?

For buyers, the appraisal confirms they aren’t overpaying for the property.
For sellers, it ensures the sale can move forward without renegotiation if it matches or exceeds the contract price.
For lenders, it protects them from lending more than the home is worth.

❓ What happens if the appraisal comes in low?

If the appraisal value is lower than the contract price, options include:

✔️ Renegotiating the price
✔️ The buyer paying the difference in cash
✔️ Disputing the appraisal with additional comps
✔️ Cancelling the contract (depending on contingencies)

Setting this expectation upfront helps avoid panic if a low appraisal occurs

❓ How can sellers prepare for the appraisal?

Advise your sellers to:

✅ Declutter and clean the home
✅ Ensure all major systems are in working order
✅ Provide a list of recent upgrades or improvements
✅ Maintain curb appeal – first impressions matter, even to appraisers

❓ How long does the appraisal process take?

Typically, from scheduling to report delivery, appraisals take 5-10 business days, but timelines can vary depending on market demand and property complexity.

❓ Can the buyer choose their own appraiser?

No. The lender orders the appraisal through an appraisal management company to maintain compliance and avoid potential bias. However, buyers do pay for the appraisal as part of their closing costs.

❓ How long is an appraisal valid?

Most appraisals are valid for 120 days (about 4 months), but this can vary by loan type and lender requirements.