Appraisal

Real Estate

An appraisal is a licensed professional's opinion of a property's fair market value, typically required by lenders before approving a mortgage. Appraisers compare the subject property to recent sales of similar properties ('comps') — adjusting for size, condition, location, amenities. Costs $400-$700 typically, paid by buyer at closing. Appraisals below the contract price create financing gaps — buyer must bring more cash, renegotiate price, or walk away (financing contingency). Refinance appraisals can come in low, limiting LTV-based options. Disputes can request reconsideration of value (ROV) with documentation of overlooked comps. Appraiser bias is a documented issue; multiple appraisals can produce different values.