What to Expect During the Home Appraisal Process

The home appraisal is a key milestone in the buying and selling process, yet it often causes confusion or anxiety for both parties. Whether purchasing your first home or selling a long-time residence, understanding the appraisal process helps you prepare and avoid surprises.

At Spotlight Realty, we guide clients through every transaction detail, including what to expect during the appraisal. This comprehensive guide will help you understand how the process works, who is involved, what impacts value, and how to respond to results—especially in the competitive Raleigh-Durham market.

A home appraisal is an independent, professional opinion of a property’s market value. Appraisals are typically required by lenders during a real estate transaction to ensure the home is worth the amount the buyer is borrowing. While buyers and sellers agree on a purchase price, the lender wants to confirm that the property justifies the loan amount.

The appraisal protects the lender from lending more than the home is worth and protects the buyer from overpaying.

In most cases, the buyer pays for the appraisal as part of the mortgage process. The cost typically ranges from $400 to $700, depending on the property's size, type, and location. It is paid upfront and is non-refundable, even if the transaction doesn’t close.

A licensed or certified appraiser, who is independent and impartial, conducts the appraisal. They are chosen by the lender—not the buyer or seller—and are required to follow strict industry standards to ensure objectivity.

Appraisers assess both the property itself and comparable home sales in the area. Their evaluation includes:

• Location: Neighborhood, proximity to schools, highways, and amenities
• Size and Layout: Square footage, number of bedrooms and bathrooms
• Condition: Age of the home, recent upgrades, structural integrity
• Curb Appeal: Landscaping, exterior maintenance
• Interior Features: Flooring, kitchen and bath finishes, HVAC systems
• Lot Size and Usability
• Comparable Sales (Comps): Recent sales of similar homes within a close radius, typically within the past 3–6 months

The on-site portion of the appraisal (the inspection) typically takes 30 minutes to a few hours, depending on the property’s size and complexity. Afterward, the appraiser spends additional time researching comparable sales and compiling the final report, which is usually delivered within 5–10 business days.

The appraiser submits a detailed report to the lender, which includes:

• Photos and measurements of the property
• Descriptions of recent sales used as comparables
• An estimated market value of the property

The lender reviews the report to determine whether to approve the loan as is, renegotiate the terms, or require changes based on the appraisal value.

This is the ideal outcome. The lender approves the loan, and the sale proceeds as planned.

Great news for buyers—this means you’re purchasing a home below market value and gaining instant equity.

This is where challenges can arise. The lender will only finance the appraised value, not the higher purchase price. When this happens, the buyer and seller must decide how to bridge the gap.

If the appraisal comes in below the agreed-upon price, here are a few common options:

• Buyer Makes Up the Difference in Cash: If financially feasible, the buyer can pay the difference between the appraised value and the purchase price.
• Seller Lowers the Price: To keep the deal intact, the seller may agree to reduce the price.
• Split the Difference: Both parties may agree to meet in the middle.
• Dispute the Appraisal: If there are errors or better comps were overlooked, the buyer’s agent can submit a reconsideration request.
• Cancel the Contract: If no agreement is reached, the buyer can walk away (if the appraisal contingency is in place).

If you’re the seller, preparing your home for the appraisal can help ensure it reflects its highest value:

• Tidy Up the Interior and Exterior
• Make Minor Repairs (leaky faucets, loose hardware, chipped paint)
• Compile a List of Recent Upgrades with receipts or contractor documentation
• Ensure All Utilities Are On so the appraiser can test systems
• Provide a List of Comparable Sales if you know of recent, relevant sales not on public record

Buyers don’t need to prepare physically, but it helps to:

• Understand What Happens If the Appraisal Comes in Low
• Have Additional Funds Ready in case negotiation is needed
• Discuss Backup Strategies with your agent

At Spotlight Realty, we stay actively involved before, during, and after the appraisal to help protect our clients' interests. Our agents:

• Provide accurate CMA (Comparative Market Analysis) reports to support pricing
• Communicate with appraisers when appropriate to share relevant details and comps
• Strategize with clients if a low appraisal threatens the deal

Whether you're buying or selling, we advocate on your behalf to make sure your transaction moves forward smoothly.

While the appraisal can feel like a hurdle, it's an important checkpoint that brings transparency and value validation to your transaction. With the right guidance and preparation, both buyers and sellers can navigate it successfully.

At Spotlight Realty, we make sure you're never navigating these steps alone. Our local expertise and proactive support make all the difference when the stakes are high. Looking for more in-depth guidance?

Download our free guides to help you through the buying or selling journey:

• Spotlight Realty Buyer’s Guide
• Spotlight Realty Seller’s Guide

Or connect with a Spotlight Realty agent today to discuss your real estate goals in Raleigh-Durham and beyond.