Once you’re under contract on a home in Washington Township, your lender will typically order an appraisal before your loan can move forward. It’s a routine part of financing a purchase, but it can feel like a mystery if you’ve never been through one. Here’s what’s actually involved.
Why Lenders Require an Appraisal
An appraisal gives your lender an independent, professional opinion of the home’s market value. Because the house is collateral for the loan, the lender wants to confirm that the amount they’re financing is reasonably in line with what the property is actually worth, separate from the agreed-upon sale price. A licensed, third-party appraiser handles this — not your lender, your agent, or the seller.
What Happens During the Appraisal Visit
The appraiser visits the home to inspect its condition, size, layout, and features, and takes note of things like recent updates, the number of bedrooms and bathrooms, and overall upkeep. They’ll also research recent sales of comparable homes in the area to help support their valuation. The visit itself usually takes anywhere from twenty minutes to a couple of hours depending on the size and complexity of the home. As the buyer, you generally aren’t required to attend, though your agent or the seller may be present to let the appraiser in.
Appraisal vs. Home Inspection: Two Different Things
It’s easy to confuse an appraisal with a home inspection, but they serve different purposes. An inspection is about identifying defects or needed repairs for your own benefit as the buyer. An appraisal is about establishing value for the lender. An appraiser isn’t evaluating the home as thoroughly as an inspector would, and passing an appraisal doesn’t mean the home is free of issues — it only means the value supports the loan amount.
What Happens If the Appraisal Comes in Low
If the appraised value comes in below the agreed purchase price, it doesn’t automatically derail the deal, but it does require a next step. Depending on what your purchase contract allows, options can include renegotiating the price with the seller, the buyer covering the difference in cash, disputing the appraisal with supporting data, or, if there’s an appraisal contingency in place, walking away from the contract. Your agent can walk you through which of these makes sense for your specific situation.
Frequently Asked Questions
Who pays for the appraisal?
The buyer typically pays the appraisal fee as part of their loan costs, even though the lender is the one who orders it.
Can I be present during the appraisal?
There’s no rule against it, and some buyers choose to attend, but it isn’t required and the appraiser’s assessment isn’t influenced by who’s there.
Does a low appraisal mean something is wrong with the home?
Not necessarily. A lower-than-expected value can reflect market conditions, limited comparable sales, or a purchase price that was set aggressively during a competitive offer — not necessarily a problem with the property itself.
Kelly Nation is a real estate agent with RE/MAX Alliance serving Centerville, Ohio, Washington Township, and the greater Dayton area. Thinking about buying or selling in the area? Reach out to Kelly Nation with RE/MAX Alliance at 937-609-5852 to get started.
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