Once your inspection is underway and your loan is moving through underwriting, the lender will order the appraisal. This is another key milestone in your home-buying journey, and its purpose is simple: to ensure the home’s value supports the amount the lender is approving for your mortgage.
Although an appraisal may feel like just another step in the process, the results can influence negotiations, timelines, and loan approvals. We’re here to prepare you for each possible outcome and guide you confidently through whatever the appraisal reveals.
Who Orders the Appraisal and Who Pays for It?
Your lender is responsible for ordering the appraisal. Federal lending guidelines require that the lender select an appraiser through a third-party vendor to ensure neutrality and prevent influence from either buyer or seller.
While the lender orders it, you, the buyer, pay for the appraisal—typically as part of your upfront loan-related costs. Fees vary depending on property type, size, and location, but most buyers in Central Indiana can expect an appraisal fee in the $500–$700 range.
Once ordered, the appraiser will visit the property, analyze comparable sales, review market data, and generate a formal valuation report.
What the Appraisal Can Reveal
An appraisal can come back in several ways. Each outcome has a different meaning and next step, and we will help you navigate them all.
- Appraised Value at the Purchase Price
This is the most common—and easiest—outcome.
Your loan proceeds as planned.
No additional negotiations are required.
- Appraised Value Above the Purchase Price
That’s the kind of surprise we like.
You gain instant equity in your home.
The contract price remains the same; the lender will not increase the loan amount just because the value is higher.
- Appraised Value Below the Purchase Price
This is where skilled negotiation matters. A low appraisal means the lender will only lend up to the appraised value—not the agreed-upon price.
When this happens, you have options:
- Renegotiate the purchase price with the seller
- Split the difference between you and the seller
- Pay the difference in cash, if you choose to
Walk away if no agreement can be reached (as long as your contract includes the appraisal contingency)
A low appraisal does not mean the deal is lost—it simply requires strategy. We step in immediately to guide the negotiation and protect your interests.
- Appraisal “Subject To” Repairs
If the appraiser identifies issues that affect safety, marketability, or livability—such as peeling paint, missing handrails, roof concerns, or electrical hazards—the appraisal may be conditioned on required repairs.
This means:
- Repairs must be completed before closing
- A re-inspection may be required by the appraiser
- The lender will not finalize the loan until the issues are resolved
We coordinate with the seller’s agent, track timelines, and ensure all repair requirements are met so your closing stays on course.
How Lee Ann & Betzy Support You Through the Appraisal
This step can bring questions and unexpected outcomes, and you won’t be left to figure it out alone. Here’s how we advocate for you:
We communicate with your lender to track appraisal ordering and report timelines.
We prepare you for the possible outcomes before the report arrives so nothing feels like a surprise.
We analyze the appraisal findings and explain them in clear, straightforward terms.
If the value comes in low, we handle negotiations with the seller’s agent and work strategically to find the best solution for you.
If repairs are required, we coordinate with all parties, monitor completion, and ensure proper documentation is submitted back to the lender.
We keep you informed at every step, with prompt updates and proactive next steps.
The appraisal is a critical part of the process, but with the right guidance, it becomes manageable and predictable. We’re here to protect your investment, support your financial security, and provide a calm, informed path forward—no matter what the appraisal reveals.
When the appraisal is completed and approved by your lender, you’re one major step closer to closing on your new home.
