Once we’re under contract and past the initial inspection stage, the next major milestone is the appraisal.
Whether you're buying in Frisco, Prosper, McKinney, Celina, Plano, Little Elm, or anywhere in North Texas, the appraisal plays a huge role in your financing.
Lenders require appraisals to protect themselves—and you—from overpaying.
And because North Texas home prices move fast, appraisals can become a pivotal moment in the transaction.
Here’s exactly what happens during the appraisal process and how I walk you through it.
1. The Appraisal Is Ordered by Your Lender
You cannot order your own appraisal.
✔️ The lender orders it
✔️ Through a third-party Appraisal Management Company (AMC)
✔️ To ensure no bias
✔️ You pay for it (usually $500–$750)
I monitor when it’s ordered so the timeline stays on track.
2. The Appraiser Contacts the Listing Agent
The appraiser will:
✔️ Schedule a visit
✔️ Ask for access
✔️ Request a list of upgrades
✔️ Confirm property details
I make sure the listing agent is responsive so we avoid delays.
3. I Provide the Appraiser With a Comparable Sales Package
This is one of the most important steps—most agents skip it.
I prepare a professional comp package that includes:
✔️ Recent comparable sales
✔️ Pending sales
✔️ Adjustments for upgrades
✔️ Unique value features
✔️ Notes about multiple offers
✔️ Competitive context (days on market, list-to-sales ratios)
✔️ Builder incentives (for new construction comps)
The appraiser may or may not use this information, but supplying it helps ensure the appraisal reflects the true market conditions.
4. The Appraiser Visits the Property
The visit usually lasts 20–45 minutes.
The appraiser checks:
✔️ Size
✔️ Sq. footage
✔️ Condition
✔️ Upgrades
✔️ Layout
✔️ Defects
✔️ Roof age (visible clues)
✔️ Exterior
✔️ Foundation signs
✔️ Neighborhood factors
They do not do a full inspection—it’s an evaluation, not a diagnostic.
5. The Appraiser Researches Comparable Sales
Using MLS and public records, the appraiser pulls comps that are:
✔️ Similar in size
✔️ Similar in age
✔️ Similar in style
✔️ Recently sold (ideally 90 days)
✔️ Located in the same subdivision
✔️ Adjusted for features
In fast-moving North Texas markets, appraisers sometimes use older comps, which can create appraisal challenges.
6. The Appraiser Delivers the Report to the Lender
Not to me.
Not to the seller.
Only to the lender.
Once the lender reviews it, they send it to us.
This usually takes:
✔️ 5–10 days after the visit
✔️ Longer during high-volume seasons
I track the timeline closely.
7. There Are Three Possible Outcomes
Outcome 1: Appraisal Meets the Contract Price
Best-case scenario.
✔️ We move forward normally
✔️ Loan continues processing
✔️ No action required
Outcome 2: Appraisal Comes in ABOVE the Contract Price
This is rare but amazing.
✔️ You have built-in equity
✔️ Nothing changes in the contract
✔️ Loan continues normally
This is one of the best positions a buyer can be in.
Outcome 3: Appraisal Comes in BELOW the Contract Price
This is where strategy matters.
If the price is higher than the appraisal, we have several options based on your contract language.
8. What Happens If the Appraisal Is Low?
Depending on our offer, we may have included:
✔️ No appraisal waiver
→ You can renegotiate or terminate.
✔️ Partial appraisal waiver
→ You cover the agreed portion of the gap; if the gap exceeds that amount, you regain termination rights.
✔️ Full appraisal waiver
→ You agree to pay the difference in cash.
✔️ No waiver (FHA/VA)
→ You cannot be forced to pay above appraised value.
I walk you through your rights immediately.
9. Options After a Low Appraisal
Option A: Renegotiate the Price
Often the seller will meet the appraisal value or adjust partially.
Option B: Split the Difference
Common compromise to keep both sides happy.
Option C: Seller Gives Closing Cost Concessions
Works well for small appraisal shortages.
Option D: Buyer Covers the Appraisal Gap
When financially comfortable and/or strategically smart.
Option E: Terminate the Contract
If allowed by your financing/addendum language.
I guide you toward the smartest path based on condition, equity, and long-term value.
10. Can We Challenge an Appraisal? (Yes—Sometimes)
If an appraisal is clearly flawed, I can help you submit a Reconsideration of Value (ROV).
We provide:
✔️ Better comps
✔️ Missed upgrades
✔️ Incorrect square footage corrections
✔️ Market context
✔️ Builder incentive adjustments
Not all challenges succeed—but some do.
11. What Appraisers DO NOT Care About
Appraisers ignore:
✔️ Furniture
✔️ Décor
✔️ Paint colors
✔️ Smell
✔️ Landscaping beauty
✔️ Non-permitted additions (usually)
They care about objective, measurable value.
12. What I Tell Buyers Before the Appraisal
I explain:
✔️ Your financial exposure (based on waiver type)
✔️ The likely appraised value
✔️ The comps we expect the appraiser to use
✔️ Strategy if the appraisal is low
No surprises. Ever.
Bottom Line: The Appraisal Can Make or Break a Texas Transaction
The appraisal is one of the most important stages of buying a home.
When I represent you, I:
✔️ Prepare the appraiser
✔️ Provide comps
✔️ Monitor timelines
✔️ Interpret the results
✔️ Negotiate if low
✔️ Protect you from unnecessary risk
You’ll always know exactly what’s happening and what your options are.
Want a Realtor Who Manages the Appraisal Process Strategically?
If you want expert appraisal guidance in a fast-moving North Texas market, I’d love to help.
