By Lailan Bento
Buying or selling a home is filled with important milestones, but few are as pivotal as the appraisal. Whether you are preparing to list your property or making an offer as a buyer, the appraisal plays a crucial role in finalizing the transaction.
This stage often brings a mix of anticipation and uncertainty. Knowing what to expect — and how to prepare — can give you peace of mind and help you make informed decisions.
As you move through the process, it's natural to have questions about timelines, results, and what steps you can take to support a successful outcome. Here’s everything you need to know to confidently approach the home appraisal.
Key Takeaways
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The appraisal confirms the property’s fair market value.
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The appraiser considers location, condition, upgrades, and recent sales.
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Understanding the process can help you avoid surprises and delays.
What Is a Home Appraisal, and Why Is It Needed?
A home appraisal is a formal, unbiased assessment of a property's value conducted by a licensed appraiser. This evaluation is a standard part of most real estate transactions — especially if the buyer is securing a mortgage. The lender uses the appraised value to confirm that the property is worth the loan amount being requested.
As a seller, the appraisal can directly impact your transaction, as the buyer’s lender is looking for a value that matches or exceeds the agreed purchase price. For buyers, it offers reassurance that you are not overpaying for the home. Lenders rely on this neutral valuation to protect their investment, and it helps create transparency in the transaction.
The appraisal process is required for nearly all financed real estate sales. It’s designed to protect both the lender and the buyer from potential losses while ensuring that the transaction reflects current market conditions.
What the Appraisal Achieves
The Appraisal Timeline: What Happens and When?
The home appraisal takes place after the purchase agreement has been signed but before final loan approval. As soon as the lender orders the appraisal, the clock starts ticking. The timeline for scheduling and completing the appraisal may vary, but it usually takes about one to two weeks from order to delivery of the report.
During this time, the appraiser will reach out to arrange an in-person visit. The property assessment is usually completed in under an hour for most homes. However, compiling the report and analyzing market data may take several days.
Typical Appraisal Timeline
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Lender orders appraisal after purchase agreement is signed.
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Appraiser schedules and completes the property visit.
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Appraiser analyzes property features and local market data.
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The report is submitted to the lender, usually within a week.
What Does the Appraiser Look For?
During the visit, the appraiser will carefully evaluate the property inside and out. This assessment goes beyond a basic walkthrough. The appraiser takes measurements, checks the condition of each room, and takes note of upgrades or repairs. Factors like square footage, number of bedrooms and bathrooms, recent improvements, and lot size are all taken into account during the evaluation.
The appraiser also compares your property to recent sales of similar homes — known as “comps” — within the area. These comparisons help establish a fair market value that reflects local market trends and the unique qualities of your home.
What Appraisers Focus On
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Overall condition and age of the property.
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Upgrades, renovations, or deferred maintenance.
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Comparable recent sales within the market.
What Happens After the Appraisal Is Completed?
Once the appraisal is finished, the appraiser compiles their findings into a detailed report. This document includes photographs, descriptions, and the final opinion of value. The lender reviews the report and shares the results with both parties.
If the appraisal matches or exceeds the purchase price, the transaction typically moves forward as planned. However, if the value comes in lower than expected, it can impact loan approval or require renegotiation.
Working together, we will explore all available options to resolve any discrepancies, whether that means appealing the appraisal, renegotiating the price, or addressing concerns directly with the lender.
What to Expect Post-Appraisal
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Review of the report and final value determination.
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Communication from the lender regarding next steps.
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Opportunity to discuss or challenge the results if necessary.
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Resolution of any value discrepancies to keep the transaction on track.
Appraisal Challenges and How to Handle Them
Appraisal gaps — a situation where the appraised value is lower than the contract price — can sometimes occur. Thankfully, there are several ways to address this scenario.
You may choose to renegotiate the price, increase your down payment amount, or request a second opinion. Together, we will review the appraisal report, analyze comparable sales, and develop a strategy tailored to your needs. If needed, we can also request a reconsideration of value by providing additional information or evidence that supports your case.
Clear communication and preparation can often resolve challenges quickly and effectively, helping you achieve your goals without unnecessary stress.
Handling Appraisal Gaps
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Review the appraiser’s methodology and comparable sales.
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Negotiate adjustments to the purchase agreement if needed.
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Provide evidence of additional upgrades or features not included in the initial report.
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Consider requesting a second appraisal if justified.
FAQs
What Is the Purpose of a Home Appraisal?
An appraisal is performed to determine the property’s current market value and to ensure that the purchase price is fair based on recent comparable sales and the home’s features.
How Long Does the Appraisal Process Take?
The entire process typically takes one to two weeks from the time it is ordered until the report is completed and submitted to the lender.
What If the Appraisal Value Is Lower Than the Purchase Price?
If the value comes in lower, options include renegotiating the price, providing additional information to the appraiser, or requesting a second appraisal.
What Factors Influence the Appraised Value?
The main factors include the home’s condition, size, location, recent upgrades, and the sales prices of comparable properties in the area.
Navigate Your Appraisal With Confidence
Understanding the home appraisal process is an important part of your real estate journey. Whether you are buying or selling, preparation and communication make a world of difference. By staying proactive and informed, you can move forward with confidence — knowing you have the guidance and expertise needed to achieve your goals.
Ready to make your move in Kailua-Kona? Whether you’re buying, selling, or just exploring your options, you deserve a seamless real estate experience. Partner with me,
Lailan Bento, for expert guidance through every step of the Kailua-Kona real estate journey.
