By The Joe Schembri Team
We get a lot of questions about the appraisal once a Fremont buyer is under contract, usually right after the excitement of an accepted offer settles in. It's one of the last major steps standing between an accepted offer and a closed sale, and it can feel like a black box if no one walks you through it. We manage this part of the process for every buyer we work with, from scheduling to reviewing the final report. Here's what actually happens during a home appraisal and what to do if the number comes back different than expected.
Key Takeaways
- An appraisal protects the lender, but the outcome affects the buyer directly
- Appraisers use recent comparable sales, not the agreed purchase price, to reach their value
- A low appraisal doesn't have to end a deal if it's handled the right way
- Timing the appraisal correctly keeps the rest of the transaction on schedule
What an Appraisal Is and Why It Happens
An appraisal is an independent estimate of a home's value, ordered by the buyer's lender once a purchase agreement is signed. Lenders require it because they're financing the property, and they need to confirm the loan amount doesn't exceed what the home is actually worth. The appraiser has no relationship to either the buyer or seller and works independently of the negotiated purchase price.
Why Lenders Require This Step
- To confirm the loan amount is supported by the property's actual value
- To protect against lending more than a property would sell for in a foreclosure
- To document the property's condition at the time of sale
- To satisfy underwriting requirements before final loan approval
How the Appraisal Gets Scheduled and Assigned
Once the lender orders the appraisal, the request typically routes through an appraisal management company, which assigns a licensed appraiser independent of the buyer, seller, or either agent. This separation exists specifically so no one involved in the transaction can influence the outcome. Scheduling usually happens within a few business days of the order, with the actual visit to the property following shortly after.
What Determines the Timeline
- How quickly the appraisal management company assigns an available appraiser
- The appraiser's current workload and scheduling availability
- Whether the property is easy to access for the visit
- How quickly the lender processes the completed report once received
How the Appraisal Visit and Valuation Work
During the visit, the appraiser walks through the home, measures square footage, and notes the condition of major systems and finishes. They then research recent comparable sales in the immediate area, adjust for differences between those homes and the subject property, and arrive at a final value. The entire process, from the walkthrough to the finished report, typically takes one to two weeks.
What Happens During the Appraisal Visit
- Measuring the home's square footage and verifying the layout
- Noting the condition of the roof, systems, and major finishes
- Photographing the interior and exterior for the appraisal report
- Reviewing recent comparable sales nearby to support the valuation
Why Comparable Sales Matter So Much
The comparable sales an appraiser selects can make a real difference in the final number, especially in a market where inventory and pricing shift neighborhood by neighborhood. In Fremont, an appraiser comparing a home in Mission San Jose to sales in a different part of the city could end up with a lower value than the comps actually support. We stay involved during this step, providing our own list of relevant comparables to make sure the appraiser has the full picture.
How We Support the Appraisal Step
- Providing a list of recent, truly comparable sales in the same neighborhood
- Flagging any upgrades or renovations the appraiser might not notice
- Communicating directly with the appraiser or lender if questions come up
- Reviewing the report as soon as it's available to catch any errors
What Happens if the Appraisal Comes in Low
A low appraisal doesn't automatically end a transaction, though it does require a conversation between the buyer, seller, and both agents. Buyers can choose to cover the difference in cash, renegotiate the price with the seller, or dispute the appraisal if there's a clear factual error or missing comparable sales. Each option has different implications for the buyer's cash reserves and the timeline, so we walk through them together before deciding.
Options When an Appraisal Comes in Low
- Paying the difference between the appraised value and the purchase price in cash
- Renegotiating the purchase price with the seller based on the appraisal
- Requesting a formal appraisal dispute if there's a documented error
- Splitting the difference between buyer and seller as a middle-ground solution
FAQs
How long does the appraisal process usually take?
From the time the lender orders it to the final report, it typically takes one to two weeks, though this can vary based on the appraiser's schedule and the lender's process. We build this timeline into the overall closing schedule from the start.
Who pays for the appraisal?
The buyer typically covers the appraisal fee as part of closing costs, and it's usually collected upfront rather than rolled into the final settlement. The exact amount depends on the lender and the property type.
Can we choose our own appraiser?
No. Lenders select the appraiser through an independent assignment process specifically to keep the valuation unbiased, and buyers and agents aren't able to request a specific person.
Contact The Joe Schembri Team Today
The appraisal is one of the steps in a home purchase that feels most out of your hands, and we make sure you're never navigating it without guidance. We stay involved from the moment the appraisal is ordered through the final report, so nothing catches you off guard.
Reach out to The Joe Schembri Team, and let's talk about what to expect at every step of your Fremont home purchase.
Reach out to The Joe Schembri Team, and let's talk about what to expect at every step of your Fremont home purchase.
