Step 18 to Selling Your Home: The Appraisal
Step 18 to Selling Your Home: The Appraisal
If the buyer is using a mortgage to purchase your home, their lender will require an appraisal. The appraisal protects the lender by ensuring the home’s value supports the loan amount. But what does that mean for you as the seller? Let’s break it down.
Who Orders the Appraisal?
The buyer’s mortgage lender orders the appraisal.
The buyer pays for it as part of their loan process.
When Does It Happen?
Appraisals are scheduled during weekday business hours.
You don’t need to attend. Instead, we’ll meet the appraiser at your home, provide comps, and explain why the purchase price is supported by market data.
How Long Does It Take?
The appointment itself usually takes about 30 minutes.
The appraiser then needs about 7–10 days to complete the written report.
The report goes to the buyer’s lender, who then shares results with the buyer.
What the Results Mean
At or Above Purchase Price: Perfect—nothing more needs to be done. The sale moves forward as planned.
Below Purchase Price: This is where challenges can arise. The lender will only finance up to the appraised value. Options include:
Renegotiate the purchase price closer to the appraised value.
Buyer brings additional cash to closing to cover the difference.
Deal falls through if neither side can reach an agreement.
👉 Example: If your home sells for $500,000 but appraises at $475,000, the bank will only loan based on $475,000. If we agree to lower to $480,000, the buyer must decide whether to bring an extra $5,000 to closing—or walk away. In most cases, if the deal falls apart due to a low appraisal, the buyer’s earnest money is refunded.
Bottom Line
The appraisal is an important checkpoint in the selling process. While most appraisals support the contract price, if your home appraises low, we’ll strategize together on the best next step—whether that means renegotiating, holding firm, or exploring alternatives.
💡 Selling a home in South Jersey?
Kathleen Quarterman, Quarterman Realty Group will guide you through every step of the process—from contract to appraisal to closing. Call 609-948-4306 or email info (@) quartermangroup.com to get started.
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