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Process

Appraisal

A professional assessment of a property's market value conducted by a licensed appraiser. Lenders require an appraisal before approving a mortgage to make sure the home is worth at least as much as the loan amount. If the appraisal comes in lower than the purchase price, you may need to renegotiate the price, make a larger down payment, or the deal may fall through.

Why It Matters

Appraisal is a key milestone in the homebuying process. The typical purchase takes 30-60 days from accepted offer to closing, and each step — including appraisal — has specific timelines, requirements, and potential pitfalls. Being prepared for each phase prevents costly delays.

During appraisal, communication with your real estate agent, lender, and other professionals is critical. Respond to requests quickly, keep documents organized, and ask questions if anything is unclear. Delays at any step can jeopardize your closing date or purchase agreement.

Real-World Example

In a typical home purchase, appraisal occurs within a specific window. Missing deadlines related to appraisal can result in contract violations, lost earnest money, or even a failed transaction. Stay ahead of schedule.
Pro Tip
Create a homebuying timeline checklist and mark every deadline related to appraisal. Set calendar reminders 2-3 days before each due date so you're never scrambling at the last minute.

Related Terms

Fair Market ValueAssessed ValueUnderwritingLoan-to-Value Ratio (LTV)

Tools That Use This Concept

MMortgage Payment CalculatorMAffordability CalculatorMClosing Costs Guide
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