Home Appraisals: What to Do If Your Home Doesn’t Comp (And How to Handle It Like a Pro!)
Buying or selling a home? One of the most critical steps in the real estate process is the home appraisal. Whether you're a first-time homebuyer, a seller, or a real estate investor, understanding how appraisals work—and what to do if a home doesn’t “comp”—is essential to keeping your transaction on track.
At Kelso Pickleball Club and beyond, I help my clients navigate the ins and outs of home buying and selling with confidence. In this guide, I’ll break down what happens when a home doesn’t appraise for the contract price and how you can handle it like a pro.
What Is a Home Appraisal?
A home appraisal is an unbiased professional opinion of a home’s value, conducted by a licensed real estate appraiser. Lenders require appraisals to ensure they aren’t lending more money than a property is worth.
How Does an Appraisal Work?
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The Lender Orders the Appraisal
- Once you’re under contract, the buyer’s lender hires an independent home appraiser to assess the property’s value.
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The Appraiser Evaluates the Home
- The appraiser looks at square footage, condition, location, recent comparable sales (comps), and market trends.
- Comps are similar homes that have sold in the area within the past 3-6 months.
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The Final Appraisal Report
- If the appraisal matches or exceeds the contract price, the sale moves forward smoothly.
- If the home doesn’t comp (meaning the appraised value is lower than the agreed purchase price), then we need to explore solutions.
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