Assessed, Market, and Appraised Value Are Different
These numbers answer different questions:
- Assessed value is used by local government in the property-tax process.
- Market value is the price buyers may pay in the current market.
- Appraised value is one licensed appraiser's supported opinion for a stated purpose and date.
The tax assessment does not set the sale price. The contract price also does not force the appraised value.
Who Orders and Pays for the Appraisal?
When the buyer uses a mortgage, the lender normally orders the appraisal through its approved process. The buyer commonly pays the appraisal charge as a loan cost, though the purchase contract or negotiated concessions can change who ultimately bears a cost.
Cash buyers may choose whether they need an appraisal. Sellers sometimes order a separate appraisal before listing, but it does not replace a later lender appraisal.
What the Appraiser Does
The appraiser identifies the property, observes relevant features and condition, reviews available records, and analyzes comparable sales. The exact visit and report depend on the assignment and loan program. An appraisal is not a full home inspection and does not promise that every defect was found.
The Consumer Financial Protection Bureau describes an appraisal as a professional opinion of value. The lender uses that opinion as one part of its loan decision.
How a Seller Can Prepare
Make the property safely accessible. Unlock needed areas, secure pets, replace burned-out bulbs, and clear enough space for the appraiser to observe the home. Prepare a short factual packet with:
- permits or records for major completed improvements
- dates and costs for material updates
- a survey or floor plan if available
- information about unusual features
- relevant sale records the appraiser may not know about
Do not pressure the appraiser or claim that spending a certain amount added the same amount of value. Cleanliness can improve access and presentation, but it does not change the appraiser's duty to reach an independent, supportable result.
How Long Does It Take?
Timing varies with property type, market data, lender review, corrections, and the appraiser's workload. The contract should control deadlines, not a general online estimate. Ask the buyer's agent or closing contact when the appraisal was ordered, when the report is expected, and when the appraisal contingency ends.
What Happens After the Report?
If the value supports the loan, the transaction continues through the remaining financing and closing steps. If it comes in below the contract price, the buyer may need more cash, the parties may renegotiate, a review may be requested, or a contract right may allow cancellation.
Our guide to seller options after a low appraisal explains that separate decision.
The Bottom Line
Prepare accurate records and easy access, then let the appraisal remain independent. Know the contract deadlines and plan ahead for both a supported value and a low result.
