What happens during a home appraisal?

During a home appraisal, a professional appraiser assesses the property's value. This evaluation is a critical component in the real estate transaction process, particularly for securing financing. The appraisal considers various factors, including the property’s condition, location, comparable sales in the area, and overall market conditions.

The primary purpose of the appraisal is to ensure that the property's value aligns with the price set in the sales agreement, providing assurance to the lender that they are not over-investing in the property. This step safeguards both the buyer and the lender against paying more than the property's worth, as it establishes a fair market value based on detailed analysis and professional standards.

While elements such as negotiation of the sale price, updates to property listings, and securing financing play crucial roles in the transaction process, they do not specifically pertain to the appraisal itself. The appraisal is solely focused on assessing the value of the property by an expert in the field.