Home Appraisal Guide 2026
Everything you need to know about home appraisals — from the basics of how they work to expert strategies for maximizing your property's appraised value. Guides for buyers, sellers, and homeowners.
Appraisal Basics
Foundation guides covering what appraisals are, how they work, and what they cost.
A home appraisal is a professional assessment of a property's market value. Understanding the process helps buyers and sellers navigate real estate transactions with confidence.
Home appraisals and inspections serve different purposes in real estate transactions. An appraisal determines market value while an inspection evaluates physical condition — both are critical for informed decisions.
Home appraisal fees vary by property type, location, and complexity. Most standard single-family home appraisals cost between $300 and $500, though specialty appraisals can cost more.
An appraisal contingency gives buyers the right to renegotiate or walk away if the home appraises below the purchase price. It's a crucial protection, especially in competitive markets.
Appraisal Types
FHA, VA, desktop, drive-by, and refinance appraisals — requirements and processes for each.
FHA appraisals have stricter requirements than conventional appraisals. Properties must meet HUD's Minimum Property Requirements for health, safety, and structural soundness before the loan can close.
VA appraisals protect veterans by ensuring properties meet Minimum Property Requirements. The VA appraisal process has unique rules including the Tidewater Initiative and specific fee schedules.
A drive-by appraisal is an exterior-only property valuation where the appraiser assesses the home from the street. Common for refinances, HELOCs, and low-risk transactions.
Desktop appraisals use data analytics, MLS records, and public records to estimate property value without a physical visit. They became widely accepted after 2020 and offer faster turnaround.
Refinancing your mortgage typically requires a new appraisal. The process differs from purchase appraisals, and homeowners can take specific steps to ensure a strong valuation.
Appraisal Strategies
Expert tips for preparing, handling low appraisals, and maximizing your property's value.
Proper preparation can help ensure your home appraises at or above the expected value. Simple improvements and documentation can make a significant difference in the final number.
A low appraisal can derail a home sale, but you have options. Understanding your choices helps you navigate this common real estate challenge and keep the deal on track.
A comprehensive checklist helps homeowners prepare systematically for the appraiser's visit. Covering these items maximizes your chances of receiving a favorable appraisal value.
Certain issues can significantly lower your home's appraised value. Knowing what hurts an appraisal helps you address problems proactively before the appraiser arrives.
An appraisal gap occurs when a home appraises below the agreed purchase price. Appraisal gap coverage clauses and creative financing solutions help keep deals together.
Virtual staging can influence buyer perception and potentially affect how appraisers evaluate comparable sales. Understanding the relationship helps sellers make smarter marketing decisions.
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Appraisal FAQ
What is a home appraisal and why is it required?+
A home appraisal is an independent estimate of a property's market value conducted by a licensed appraiser. Lenders require it to ensure the loan amount doesn't exceed what the property is worth. Without it, the bank has no third-party verification that their collateral is sufficient.
How much does an appraisal cost?+
Standard single-family appraisals run $350-$600 depending on location and property complexity. FHA appraisals cost the same but include additional health and safety checks. Rush orders typically add $100-$200. The buyer pays the appraisal fee in most transactions.
What happens if the appraisal comes in low?+
Three options: the seller reduces the price to match, the buyer covers the gap in cash, or both parties negotiate a middle ground. Buyers can also request a reconsideration of value if they have strong comparable sales the appraiser may have missed. As a last resort, the buyer can walk away if their contract includes an appraisal contingency.
How is an appraisal different from a CMA?+
A CMA (comparative market analysis) is prepared by a real estate agent using MLS data and is used for pricing strategy. An appraisal is a formal, regulated valuation by a licensed professional following USPAP (Uniform Standards of Professional Appraisal Practice) standards — it carries legal weight that a CMA does not.