When you’re buying or selling a home in Georgia, one important step you’ll likely encounter is the appraisal. It can feel like a mysterious process, but understanding how it works can help reduce stress and set realistic expectations.
So, what exactly is an appraisal? It’s an unbiased estimate of a property’s fair market value, performed by a licensed appraiser. Lenders require appraisals to make sure the home is worth the amount being financed.
The Appraisal Process Step by Step
Once a home goes under contract, the lender will order the appraisal. The appraiser will then schedule a time to visit the property. During the on-site inspection, they’ll look at the home’s size, condition, layout, and any upgrades. They’ll also take note of features like the number of bedrooms and bathrooms, lot size, and overall livability.
Next, the appraiser compares the property to recent sales of similar homes in the area—often referred to as “comps.” These comparable sales are adjusted for differences such as square footage, renovations, or location. Together, this information is used to determine the home’s current market value.
Why It Matters
For buyers, the appraisal protects you from paying more than the home is worth. For sellers, it confirms that the price is in line with the market. If the appraisal comes in at or above the purchase price, things usually move forward smoothly.
But what if it comes in low? In that case, the buyer’s lender may not approve the full loan amount. Buyers and sellers then have a few options: renegotiating the price, having the buyer bring additional funds to closing, or in some cases, disputing the appraisal with additional evidence.
Tips for a Smooth Appraisal
Sellers can prepare by making sure the home is clean, accessible, and that any minor repairs are completed. Having a list of recent upgrades handy can also be helpful. Buyers, on the other hand, should stay in close communication with their agent and lender to understand what the results mean for their financing.
The Bottom Line
An appraisal is a standard part of most real estate transactions in Georgia. While it may feel like one more step in the process, it’s designed to protect everyone involved and ensure a fair deal. By knowing what to expect, buyers and sellers can navigate the appraisal process with confidence.
