Lender will require the property is appraised to be sure the home’s value is high enough to justify the loan.
What does an appraiser do?
In short, an appraiser determines the current value of a property. They do this by performing a walk-through of the property, making note of amenities that add or detract value. They will also note health and safety code violations or other areas of concern. Most appraisers will utilize comparable home data (often referred to as “comps”) of nearby recent sales to help determine a home’s value
What happens if the home doesn’t appraise?
If a property appraises under the sales price, your buyer can request a reconsideration of value. In this case, their agent and lender would guide the process, listing factors that should warrant price adjustments, such as additional comps or alternate data. It’s possible that the appraisal could be reconsidered and you could still close at the agreed upon price.