What Is a Real Estate Appraisal?

A real estate appraisal is an unbiased professional assessment of a property’s market value, typically conducted by a licensed appraiser. Lenders require appraisals to ensure that the home’s value supports the loan amount being requested.

In my experience, appraisals play a crucial role in keeping both buyers and lenders protected. The appraiser evaluates the property’s location, condition, features, and recent comparable sales (“comps”) to arrive at a fair market value. If the appraised value comes in lower than the purchase price, it can affect financing — which is why it’s important to understand the process early.

For sellers, preparing the home for appraisal—making small repairs, ensuring cleanliness, and providing a list of upgrades—can help the appraiser recognize the property’s full value.