One of the most important — and sometimes stressful — parts of a real estate transaction happens after a seller accepts an offer: the appraisal.

When a buyer is obtaining financing, the lender typically orders an appraisal to determine whether the home supports the agreed-upon purchase price.

The appraiser’s job is to evaluate the property and compare it to recent sales of similar homes in the area. Factors such as square footage, condition, updates, lot size, location, and recent comparable sales all influence the final opinion of value.

If the appraisal comes in at or above the contract price, the transaction usually continues moving forward without issue.

But when the appraisal comes in low, things can become more complicated.

A low appraisal means the lender may not finance the full contract price. At that point, buyers and sellers typically have several options.

The buyer may choose to bring additional cash to closing to make up the difference. The seller may agree to reduce the price. Sometimes both parties negotiate a compromise somewhere in the middle. In other situations, the deal may fall apart entirely.

This becomes especially important in competitive markets where homes are receiving multiple offers above asking price.

Just because buyers are willing to pay a certain amount does not automatically mean the appraisal will support it. That is why factors such as down payment, appraisal gap coverage, and financing strength often matter when sellers evaluate offers.

Appraisals can also affect timing.

If value is disputed, buyers may request reconsiderations or additional review from the lender, which can create delays in the closing process.

For sellers, the key takeaway is this: the highest offer is not always the safest offer.

Understanding appraisal risk — especially in fast-moving markets — is an important part of evaluating the overall strength of a transaction.

In today’s market, pricing strategy and offer structure matter just as much as the final number on paper.

Market Snapshot – Past Week

Hebron, Andover, Marlborough, Colchester, East Hampton & Portland

Single-Family Homes
• 5 homes sold
• Average sale price: $415,000
• Average sale-to-list ratio: 106%
• Average days on market: 19 days
• Median days on market: 19 days

Condos
• 2 sold at an average of $398,000
• Sale-to-list ratio: 105%
• Days on market: 5 days

Results vary by price point, condition, and pricing strategy.

Jason Boice, REALTOR®
Local real estate professional serving
Hebron, Andover, Marlborough, Colchester, East Hampton & Portland
860-452-3153
JasonBoice.com