Home Appraisals, Explained
An appraisal is one of the most important steps in your mortgage — it confirms the property is worth what you're borrowing against. Here's what to expect, how to prepare, and what to do if you disagree with the value.
What is an appraisal?
An appraisal is an independent, professional estimate of a property's market value. It's conducted to assist lenders in confirming that the property offered as collateral for your loan has sufficient value to support the requested loan amount.
Appraisers must follow systematic procedures set by the Uniform Standards of Professional Appraisal Practice (USPAP) that guide their selection of comparable sales, methods for making adjustments, and standards for professionalism and objectivity.
Typical timing
Ordered after your loan application is accepted; usually completed within 1–2 weeks.
Who pays
The appraisal fee is part of your closing costs and is paid by the borrower.
Independence
Appraisers are independent third parties — your loan officer cannot influence the value.
What appraisers look at
An appraiser evaluates the property inside and out, then compares it to similar homes that have recently sold nearby. The goal is a defensible estimate of what the home would sell for on the open market.
How to prepare for your appraisal
A little preparation helps the appraisal go smoothly and makes sure the appraiser sees your home's full value.
- Tidy the home so the appraiser can easily access every room, the basement, attic, and mechanical systems.
- Make a list of recent improvements — roof, HVAC, windows, kitchen, baths — with dates and approximate costs.
- Gather any permits or receipts for major renovations or additions.
- Point out features that aren't obvious, like a finished basement, new water heater, or smart-home systems.
- Keep pets secured and plan for the appraiser to spend 30–60 minutes on site.
How the appraisal affects your loan
The appraised value is one of the key numbers that shapes your loan. Here's how the outcome can play out:
Appraised at or above price
The loan moves forward as planned based on the purchase price or requested loan amount.
Appraised below price
You can renegotiate the price, make up the difference, request a Reconsideration of Value, or in some cases walk away. We'll walk you through every option.
Refinance value
The appraised value sets your loan-to-value ratio, which affects your rate, mortgage insurance, and how much cash you can access.
Reconsideration of Value (ROV)
Concerned about your appraisal? Here's how to request a review.
What is a Reconsideration of Value?
If you have concerns with your appraisal, your loan officer will be able to discuss the process to complete your ROV Request Form. Your request will be submitted for review by an independent quality assurance team and evaluated objectively.
It is important to note that the ROV process is not intended to change the value simply because someone is dissatisfied with the appraisal conclusions or outcome. If the credibility of the report is proven to be compromised — including any evidence of discrimination or bias — the appraisal value may be reconsidered or a new appraisal report may be ordered.
What issues can an ROV help address?
If you believe any of the following apply to your appraisal, please submit a Reconsideration of Value (ROV) Request Form:
- The appraisal report may have errors or factual inaccuracies that could affect the appraised value.
- The comparable sales selected may not be the most suitable for the property comparisons.
- You are concerned that your race, ethnicity, gender, age, or other personal characteristics may have improperly influenced the appraised value.
- You are concerned that demographics associated with the neighborhood where the property is located may have improperly influenced the appraised value.
What to include when submitting an ROV request
Please keep the following in mind when submitting your ROV Request Form:
- Be as detailed as possible in providing information for the appraiser to consider.
- If you are working with a real estate agent, they may be able to provide you with comparable sales in the market.
- For a refinance, you may use tools like Redfin and Zillow to find recent sales activity — but current listings cannot be used.
- For factual errors, please specify which data points are inaccurate.
- Per the Appraiser Independence Requirements, please refrain from using intimidating language, providing prior appraisal reports, or mentioning a desired value range.
Want to start a Reconsideration of Value?
Talk to your loan officer or call us — we'll walk you through the ROV Request Form step by step.
Frequently asked questions
How long does an appraisal take?
The on-site inspection usually takes 30–60 minutes. The full report is typically delivered to your lender within a few business days, though timing can vary by area and volume.
Can I pick my own appraiser?
No. Appraiser Independence Requirements prevent the loan officer or borrower from selecting or directly communicating with the appraiser. The lender orders the appraisal through an independent process to ensure objectivity.
What if the home appraises for more than the purchase price?
That's good news — it means you have instant equity. Your loan proceeds based on the purchase price, and the extra value is yours.
What if the home appraises for less than the purchase price?
You have options: renegotiate the price with the seller, cover the difference in cash, request a Reconsideration of Value, or — if you have an appraisal contingency — walk away. We'll help you weigh each one.
Do I need an appraisal to refinance?
Most refinances require an appraisal, though some government-backed streamline refinances (like a VA IRRRL or FHA Streamline) may waive it. Ask us whether your loan qualifies.
Questions about your appraisal?
Appraisals can feel confusing, but you don't have to figure it out alone. Call or text us and we'll explain exactly what's happening and what your options are.
Jay Dacey Mortgage Team, Inc. • NMLS #1812066 • Licensed in MN, WI, ND & FL
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