What Is a Home Appraisal? Here’s What It Costs and Why

When you're buying a home, there's one important step that can affect everything from your loan approval to the final sale price: the home appraisal. If you’re wondering what this means, how it works, or why it matters, you’re not alone. A home appraisal is a standard part of the buying process and helps protect both you and your lender.

What is a Home Appraisal?

A home appraisal is a professional estimate of a property’s market value. It tells the lender how much the home is worth based on similar homes in the area, its condition, and other factors. The appraisal is different from a home inspection. An inspection looks for repairs or safety issues. An appraisal focuses on value.

Lenders require a home appraisal because they won’t loan more than the home is worth. If you’re borrowing money to buy, the bank wants to be sure the home’s value matches the amount they’re lending. That’s why appraisals are a key part of most real estate transactions.

Let’s break it down so you know what to expect.

What Happens During a Home Appraisal?

Here’s how a typical appraisal works:

• The lender orders it. You don’t choose the appraiser. The lender hires a licensed professional from a third-party company.

• The appraiser visits the property. They walk through the home, take notes, photos, and measurements.

• They evaluate the property. Size, location, condition, layout, and recent sales in the area all factor in.

• They complete a report. This includes their opinion of the home’s fair market value, which is sent to your lender.

• You get the result. This usually happens within a few days to a week.

Knowing how a home appraisal works helps you stay prepared and confident throughout the buying process.

How Much Does a Home Appraisal Cost?

You can expect the home appraisal cost to fall between $300 and $700. The average price depends on:

• The home’s size and location

• How quickly you need the report

• The complexity of the property

Usually, the buyer pays for the appraisal, either upfront or as part of the closing costs. If you’re wondering, how much is a home appraisal for a larger or unique home, it may be on the higher end.

Why a Home Appraisal Is Important for Buyers

The home appraisal doesn’t just help the lender—it protects you, too. Here’s how:

• You don’t overpay. The appraisal confirms whether the asking price is fair.

• It impacts your loan. If the home is appraised for less than the purchase price, your loan amount may be reduced.

• It can affect the deal. If there’s a gap between the price and appraised value, the seller might lower the price—or you may need to make up the difference in cash.

That’s why it’s smart to understand how home appraisals affect your purchase early on.

Common Questions from Home Buyers

What happens if the appraisal is lower than the offer?
You can ask the seller to lower the price, pay the difference yourself, or cancel the deal, depending on your contract.

Can I appeal the appraisal?
It’s rare, but possible. You’ll need strong evidence like better comps or details the appraiser may have missed.

Do I get to pick the appraiser?
No. The lender selects the appraiser from an independent pool to avoid bias.

How long does the process take?
Typically 3–7 business days, but it depends on location and demand.

Is this the same as a home inspection?
No. A home appraisal vs inspection comparison shows that inspections focus on condition and needed repairs, while appraisals focus on value.

Tips to Navigate the Appraisal Process Smoothly

• Don’t skip the appraisal contingency. It protects you if the value comes in low.

• Avoid overbidding. Know the local market and work with an experienced agent.

• Have comps ready. Your agent can provide recent sales to support your offer.

• If refinancing, tidy up. Clean, declutter, and make a list of recent upgrades.

Being proactive makes the process smoother and less stressful.

Appraisals Protect You Too

A home appraisal isn’t just for the bank, it protects your investment. It confirms the home’s value so you’re not borrowing more than you should or overpaying for a property. If the number isn’t what you hoped, it gives you options before finalizing the deal.

Buying a home can feel overwhelming, but understanding how a home appraisal works makes it easier. Stay informed, ask questions, and lean on your agent for support.

Still wondering where to go in Greenville, SC for expert advice on home buying? Contact us at 864-881-1258. Our team of real estate professionals know the market and can guide you through every step—appraisal included.