Congratulations! If you’ve gotten this far, it means you’re under contract and have dropped off your earnest money check. Now it’s time for the next step: the appraisal.
Who Orders the Appraisal?
Your mortgage lender orders the appraisal. They may call you soon to collect payment (usually by check or credit card). The cost typically ranges from $400–$500 and counts toward your closing costs even though you pay it up front.
A Few Tips About the Appraisal
- You do not need to attend the appraisal.
- The buyer’s Realtor does not attend either.
- Once payment is made, the appraiser typically visits the property within about a week.
- After the visit, it generally takes another week for the written report to be completed.
- In total, expect roughly 2 weeks from the time you pay for the appraisal until you receive the report.
- The report is sent to your lender, who will then forward it to you with the results.
Understanding the Results
Your lender will notify you whether the property appraised at, above, or below the purchase price.
At Purchase Price
No further action needed. The loan and closing process will move forward as planned.
Above Purchase Price
Great news — you’ve gained instant equity! You’re purchasing below market value.
Below Purchase Price
This means the bank will only lend up to the appraised value. We’ll renegotiate with the sellers to lower the price or explore options.
Example: If the purchase price is $300,000 but the appraisal comes in at $275,000 and the seller will only lower to $280,000, you must decide whether to:
- Bring the extra $5,000 to closing, or
- Walk away and receive a refund of your earnest money.
Have questions about your appraisal? Contact us—we’re happy to explain the process and help navigate next steps.