Quick Answer
A home appraisal is an independent opinion of market value ordered by your lender to confirm the property secures the loan. The appraiser inspects the home, selects recent comparable sales, adjusts for differences in size, condition, and location, and issues a value that the lender uses instead of your contract price if it is lower.
01
Who the appraiser works for
The lender, not you, even though you usually pay for it. Appraisals are ordered through independent management channels specifically so the lender's sales side cannot influence the value.
You are entitled to a copy of the report. Read it; the comparable selection tells you a great deal about how the market sees your property.
02
How value is built
For residential property, the sales comparison approach dominates: three to six recent closed sales of similar homes, adjusted line by line for square footage, bedroom count, garage, pool, lot, age, condition, and location.
Residential appraisal differs sharply from commercial real estate Davie, FL valuation, where income and capitalization rates drive value far more than comparable sales do.
03
What appraisers do not do
An appraisal is not an inspection. The appraiser will note obvious defects and may call out safety or habitability issues that affect financing, but they are not evaluating the AC's remaining life or the roof's underlayment.
Never substitute an appraisal for a home inspection. They answer entirely different questions.
04
When the value comes in low
You have four options: renegotiate the price, pay the difference in cash, split it with the seller, or terminate if you hold an appraisal contingency. Which one is realistic depends on how competitive the property is.
A reconsideration of value can occasionally work when you supply overlooked closed comparables, but it succeeds far less often than buyers hope.
05
Davie-specific factors
Acreage and equestrian properties are harder to appraise because comparable sales are thin and land value varies widely. Condo appraisals bring project-level considerations. Homes with unpermitted additions can lose credit for that square footage entirely.
Verify permit and parcel records before you assume a finished space counts toward value.
06
How to prepare if you are selling
Leave a list of improvements with dates and costs, ensure access to the attic, electrical panel, and garage, and provide the survey and permit documentation. Appraisers credit what they can verify.
Compare this to the agent-side valuation described in comparative market analysis explained.