Mortgage Appraisal Process 2026: What to Expect & How to Prepare
The appraisal is the one step in the mortgage process you can't control — but you can prepare for it. A low appraisal can kill your deal or cost you thousands. Here's everything you need to know, including what to do if it comes in low.
Emily Chen
Construction & Commercial Loans Expert · 9 years experience
The Appraisal Timeline: Step by Step
Lender Orders the Appraisal
After your offer is accepted and you're under contract, your lender orders the appraisal through an Appraisal Management Company (AMC). You'll pay the fee ($400-$700) at this point.
Appraiser Schedules the Visit
An independent, licensed appraiser is assigned. They contact the seller's agent to schedule the inspection. The visit typically lasts 30-60 minutes for a standard home.
Physical Inspection
The appraiser visits the property, measures square footage, photographs all rooms, notes condition, and identifies any issues. They do NOT evaluate cleanliness or decor.
Report Preparation
The appraiser researches comparable sales (comps), analyzes the market, and writes the full appraisal report. This takes 3-7 business days.
Lender Reviews Report
Your lender receives and reviews the appraisal. If the value meets or exceeds the purchase price, you proceed. If it comes in low, you have options (see below).
What Appraisers Actually Look For
✅ What Helps Your Appraisal
- ✓Recent comparable sales (comps) at high prices
- ✓Updated kitchen and bathrooms
- ✓New roof, HVAC, or windows
- ✓Finished basement or bonus rooms
- ✓Good condition throughout
- ✓Curb appeal and landscaping
- ✓Location in desirable school district
- ✓Recent permits for improvements
❌ What Hurts Your Appraisal
- ✗Deferred maintenance (peeling paint, broken fixtures)
- ✗Roof damage or age (15+ years)
- ✗Outdated electrical (knob-and-tube, fuse box)
- ✗Foundation cracks or water damage
- ✗Unpermitted additions
- ✗Proximity to highways, power lines, industrial
- ✗Low comparable sales in the area
- ✗Functional obsolescence (unusual floor plan)
Important: Appraisers do NOT evaluate cleanliness, decor, or personal property. A messy house won't lower your appraisal. A broken window will.
Types of Appraisals in 2026
| Type | Cost | Timeline | When Used |
|---|---|---|---|
| Full (URAR) Appraisal | $400-$700 | 7-14 days | Standard purchase/refinance |
| Desktop Appraisal | $150-$300 | 2-5 days | Low-risk refinances, strong equity |
| Drive-By (Exterior Only) | $200-$400 | 3-7 days | Refinances with high equity |
| Hybrid Appraisal | $250-$450 | 5-10 days | Third-party inspection + appraiser analysis |
| FHA Appraisal | $400-$700 | 7-14 days | FHA loans (stricter standards) |
| Rush Appraisal | $600-$1,000 | 2-4 days | Tight closing timelines |
What to Do If Your Appraisal Comes In Low
A low appraisal means the appraiser valued the home below the purchase price. This is stressful but manageable. You have 4 options:
Negotiate the Purchase Price Down
Ask the seller to reduce the price to the appraised value. In a buyer's market, sellers often agree rather than lose the deal. This is the most common resolution.
Pay the Appraisal Gap in Cash
Pay the difference between the appraised value and purchase price out of pocket. Example: $350K purchase, $335K appraisal = you pay $15K extra at closing.
Request a Reconsideration of Value (ROV)
Challenge the appraisal by providing the appraiser with comparable sales they may have missed. Your agent or lender submits an ROV with supporting comps. Success rate: ~20-30%.
Walk Away (With Appraisal Contingency)
If your contract includes an appraisal contingency (standard in most purchase contracts), you can walk away and get your earnest money back if the appraisal comes in low.
Get Pre-Approved Before Your Appraisal
Know your budget and loan terms before the appraisal. Pre-approval strengthens your negotiating position.
Get Pre-Approved Free →How Sellers Can Prepare for the Appraisal
Fix Minor Repairs
Patch holes, fix leaky faucets, replace broken fixtures. Small repairs signal good maintenance.
Provide a Comp List
Give the appraiser a list of recent comparable sales that support your price. They must consider them.
List All Upgrades
Provide a written list of all improvements with dates and costs. New roof, HVAC, kitchen remodel — all add value.
Ensure Access
Make sure all areas are accessible: attic, crawl space, basement, garage. Blocked access raises red flags.
Improve Curb Appeal
Mow lawn, trim hedges, clean gutters. First impressions matter even to appraisers.
Be Present (or Not)
Sellers can be present but shouldn't hover. Leave the appraiser to work independently.
Frequently Asked Questions
How long does a mortgage appraisal take?
What do appraisers look for in a home?
What happens if appraisal comes in lower than purchase price?
Who pays for the appraisal?
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Emily Chen
Construction & Commercial Loans Expert · NMLS #345678
Emily has 9+ years of experience in mortgage lending with a specialty in construction loans and complex property valuations. She has guided hundreds of buyers through challenging appraisal situations.