What Is an Appraisal and Why Does It Matter So Much?

An appraisal is an independent opinion of a home’s value, ordered by the buyer’s lender. Its purpose is to ensure the home is worth the amount being financed.

If an appraisal comes in at or above the purchase price, the transaction typically moves forward. If it comes in low, buyers and sellers may need to renegotiate.

Appraisals matter because they:

• Protect lenders from over-lending
• Can impact buyer financing
• Often influence renegotiations



Pricing correctly from the start helps reduce appraisal issues.