Once you’re under contract on your new home, one of the next big steps is the appraisal. It’s a crucial part of the mortgage process and understanding what to expect can help make the experience stress-free.
Whether you’re buying in Carmel, Indianapolis, or anywhere in Central Indiana, here’s what you need to know about how appraisals work.
Whether you’re buying in Carmel, Indianapolis, or anywhere in Central Indiana, here’s what you need to know about how appraisals work.
What Is a Home Appraisal?
An appraisal is an unbiased professional opinion of a home’s value. It’s ordered by your lender to confirm that the home’s purchase price aligns with its market value.
Your lender will contact you to pay for the appraisal directly (typically between $350–$500) as part of your closing costs.
Your lender will contact you to pay for the appraisal directly (typically between $350–$500) as part of your closing costs.
Who Attends the Appraisal?
- The seller’s Realtor meets the appraiser at the property.
- Buyers and their agents do not attend.
(This ensures the process remains unbiased — we aren’t allowed to influence the appraiser’s opinion.)
Timeline
From the time you pay for the appraisal:
- It usually takes about one week for the appraiser to visit the home.
- Expect another week or so for the report to be written.
So, plan for about two weeks total from payment to results.
What Happens After the Appraisal?
- Appraisal Meets Purchase Price: Perfect! We move forward as planned.
- Appraisal Comes in Higher: Great news — you’ve got instant equity in your new home.
- Appraisal Comes in Lower: The bank will only lend based on the appraised value, not the purchase price.
- We’ll negotiate with the sellers to adjust the price to the appraisal value.
- If that’s not possible, you can either walk away (and get your earnest money back) or pay the difference at closing.
Stacy’s Tip
Appraisals help protect you from overpaying. It’s another safeguard in the process to ensure your investment aligns with true market value.
