The short answer
A home appraisal is an independent opinion of value prepared by a licensed appraiser for your lender. The appraiser inspects the property, compares recent sales of similar homes, and issues a report. Lenders lend against the lower of the contract price or the appraised value, so a low appraisal means you either renegotiate, cover the gap in cash, or use your appraisal contingency to exit.
- Typical cost
- $500–$800
- Turnaround
- 5–14 days
- Ordered by
- The lender
- Paid by
- The buyer
01
What the appraiser is actually doing
- Verifying size, layout, age, and condition against public records
- Selecting three or more recent comparable sales
- Adjusting those comps for differences in size, condition, and features
- Noting health and safety issues that some loan programs require repaired
- Delivering a written value conclusion to the lender, not to you first
02
Appraisal vs. inspection vs. market analysis
| Report | Answers | For whom |
|---|---|---|
| Appraisal | What is it worth? | The lender |
| Home inspection | What condition is it in? | The buyer |
| Agent market analysis | What should we offer or list at? | Buyer or seller |
| Insurance inspections | Is it insurable and at what cost? | The insurer |
03
Your options on a low appraisal
- Ask the seller to reduce the price to the appraised value
- Split the difference and cover part of the gap in cash
- Request a reconsideration of value with better comparable sales
- Change loan programs or increase the down payment if feasible
- Cancel under the appraisal contingency, where the contract allows it
04
How to reduce low-appraisal risk before it happens
Most gaps are created at the offer stage by pricing above what closed sales support. Anchor the number to evidence using how much you should offer on a house, and confirm your financing is solid per how to get pre-approved for a mortgage.
05
Condos and Florida-specific wrinkles
For condos, the lender also reviews the association — reserves, litigation, and pending assessments can stall a loan even with a clean value. Pull the association numbers early, including the estoppel letter, while you are still inside your contingency period.
Valuation in Hollywood swings by building and by block, so ask the realty companies in Hollywood, FL you interview how they defend a contract price when an out-of-area appraiser picks the wrong comps.
The same rules apply for clients across Cooper City and Hallandale Beach and the surrounding South Florida communities.