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Step 5 & 6 Home Buying 101: Understanding the Appraisal

Updated: 5 hours ago

Step 5 & 6 in Our First-Time Buyer Blog Series

You’ve toured homes, made a winning offer, and completed your inspections. Now comes another essential milestone in the home buying journey—The Appraisal.

If you missed the previous posts catch up here, it's time for your next big move.





📊 What Is an Appraisal?

An appraisal is a professional, third-party opinion of a home's market value—required by lenders any time you're using a mortgage to purchase a property.


The goal? - To confirm that the home is worth what you’ve agreed to pay.


🎯 Why the Appraisal Matters

The key to keeping your transaction on track is making sure the appraisal comes back equal to or higher than your offer price.


If the appraisal comes in lower than the contract price, it could lead to:

  • Renegotiating the price

  • Bringing additional cash to closing

  • Or, in some cases, cancelling the contract


That’s why pricing your offer right and relying on an experienced real estate professional (👋🏾 that’s me!) is so important from the very beginning.


What Affects the Appraisal Value?


Appraisers evaluate:

  • Comparable home sales (comps) in the area

  • Property condition and size

  • Upgrades or renovations

  • Location and lot size

  • Market conditions

This is where my local market knowledge and strategic pricing make a major difference.


Understanding the appraisal process before it happens can help you prepare for next steps and avoid surprises.


We’ll walk through appraisal tips, what happens if values come in low, and how to keep your deal moving forward.



Invest Now...Ownership is Key

📲 254-307-1596

👉🏾 Follow @watsoninvestrealtor


📚 Missed the earlier posts in the series?

Catch up on Part 1 here and keep moving confidently toward homeownership.

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