A home appraisal is an unbiased professional assessment of a property’s market value. It is typically required by mortgage lenders before approving a loan to ensure that the property is worth the amount being financed. Appraisals help protect both the lender and the buyer from overpaying for a property. The appraisal is conducted by a licensed appraiser who inspects the home and compares it to similar properties in the area.

In most cases, the buyer pays for the appraisal as part of the closing costs when purchasing a home. The fee is usually non-refundable and is paid directly to the appraisal company or through the lender. However, in refinance situations, the homeowner is typically responsible for covering the appraisal cost.

The appraisal process can take anywhere from a few days to over a week depending on the complexity of the property, the availability of appraisers in your area, and the speed at which comparable sales data is gathered. The on-site inspection usually takes less than an hour, but compiling and delivering the final report may take a few days.

If the appraised value is lower than the agreed-upon purchase price, it can impact the loan approval. Lenders typically base the loan amount on the appraised value, not the sale price. In such cases, the buyer may need to make up the difference in cash, renegotiate the price with the seller, or dispute the appraisal if there’s evidence it was inaccurate.

Yes, you can request a reconsideration of value if you believe the appraisal was inaccurate. This involves submitting comparable sales data that was overlooked or pointing out any errors in the report. Your lender will guide you through the dispute process. Keep in mind, however, that not all disputes result in a changed valuation.