AppraisalsHomebuying Glossary
Appraisal
A licensed professional's independent estimate of a home's market value, required by lenders.
In plain English
An appraisal is an independent, professional assessment of a home's value based on its condition, features, and recent comparable sales. Lenders require one to confirm the home is worth at least what they're lending against it.
Why it matters
If the appraisal comes in below your agreed purchase price, it can affect your financing — this is exactly why many offers include an appraisal contingency.
Where you'll run into it
Guides and tools on TheBuyingPath that cover appraisal in context.
Related terms
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