By Elise LoSasso
If you're buying or selling a home in Denver, the appraisal can feel like one of the more mysterious steps in the process. But understanding what happens during a home appraisal—and how it impacts your transaction—can help you stay one step ahead. Whether I’m working with buyers in Platt Park or sellers in Hilltop, I always make sure clients know what to expect and how to prepare.
Key Takeaways
- Learn how the appraisal fits into your home transaction timeline.
- Understand who orders it, who pays for it, and why it matters.
- Get familiar with what appraisers look for in Denver properties.
- Know what to do if the appraised value comes in too low.
Why the Appraisal Matters
The appraisal isn’t just another formality—it plays a critical role in the financing process. Lenders want to make sure the home is worth the amount being borrowed. If you're buying with a loan, your lender won’t finalize financing without an appraisal that supports the contract price.
Why this step can’t be skipped:
- Protects the lender's investment: They won’t fund more than the home is worth.
- Confirms market value: Especially important in fast-changing markets like Denver.
- Can impact negotiations: A low appraisal can trigger price adjustments or contract changes.
What Happens During the Appraisal
The appraiser visits the property to assess its value based on condition, features, size, and location. They don’t inspect the home like an inspector would, but they do evaluate both interior and exterior elements to judge market value.
Here's what appraisers typically look for:
- Overall condition: Including age, maintenance, and visible wear.
- Upgrades and amenities: Such as renovated kitchens, high-end appliances, or added square footage.
- Lot size and usability: Outdoor features, views, and landscaping.
- Comparable sales: Nearby recently sold homes of similar size and condition.
- Neighborhood factors: Proximity to parks, shops, and area trends.
How Long It Takes and Who Pays for It
Appraisals are usually ordered by the buyer’s lender shortly after the purchase contract is signed. In most Denver transactions, the buyer pays for the appraisal, which typically costs between $600–$1,000, depending on the property type and complexity.
What to Expect in Timing and Costs:
- Scheduling: Happens within the first 7–10 days of going under contract.
- On-site visit: Usually takes 30 minutes to an hour.
- Report delivery: Final report is sent to the lender within 5–7 business days.
What Happens If the Appraisal Comes in Low
When the appraised value is less than the contract price, it can create hurdles. But it doesn’t have to derail the deal. I always help my clients explore their options and navigate this strategically.
Options when facing a low appraisal:
- Renegotiate the price: Ask the seller to lower the price to match the appraisal.
- Bridge the gap: The buyer can bring extra funds to cover the difference.
- Challenge the report: Submit a reconsideration with better comps or correct errors.
- Walk away: If none of the above work, buyers may exit the deal using the appraisal contingency.
Tips for Sellers to Prepare for an Appraisal
If you're selling, the appraisal can directly affect your bottom line. A little prep can go a long way in maximizing the value the appraiser sees.
How to make a strong impression:
- Tidy and declutter: Clean homes appear better maintained.
- Highlight upgrades: Provide a list of improvements and their costs.
- Ensure access: Make sure all rooms, the garage, and utility spaces are accessible.
- Boost curb appeal: First impressions still matter, even for appraisers.
FAQs
Is the appraisal the same as the inspection?
No. An inspection checks the home’s condition and systems, while an appraisal determines market value for the lender.
Can I attend the appraisal?
Buyers typically don’t attend, but sellers (or their agents) may be present to answer questions and point out upgrades.
Do appraisals often come in lower than the offer price?
In Denver’s competitive market, it can happen—especially when buyers offer over asking. I make sure my clients are prepared for that possibility.
Contact Elise LoSasso Today
The appraisal is just one part of the bigger real estate picture, but it can carry major weight in your sale or purchase. I’ll guide you through it with confidence, whether you're buying a bungalow in Berkeley or listing a modern home in Bonnie Brae. Every transaction is different, and I’ll make sure yours is handled with strategy and care.
Reach out to me at Elise LoSasso, and let’s take the mystery out of what happens during home appraisal—together.
Reach out to me at Elise LoSasso, and let’s take the mystery out of what happens during home appraisal—together.
