What the appraiser evaluates
Recent comparable sales (typically within a mile and the past 6 months), property condition, square footage, lot size, bedroom and bath count, amenities (garage, basement, finished space), and any factors that affect marketability.
Who orders and pays for it
Lenders order appraisals through an Appraisal Management Company to satisfy independence rules. The borrower typically pays at the time of order. The appraisal report goes to the lender and is shared with the borrower.
If value comes in below the purchase price
Options include renegotiating the price, bringing extra cash to bridge the gap, requesting an appraisal reconsideration with supporting comps, or in some cases ordering a second appraisal under the appropriate program rules.
Program-specific appraisal nuances
FHA and VA appraisals include a property-condition check that goes beyond pure valuation. Repairs flagged as required must usually be completed before closing or escrowed for. Conventional appraisals are more strictly about value.