Home appraisals play a critical role in most real estate transactions, yet many buyers and sellers don’t fully understand their purpose—until they become a deciding factor. In today’s shifting real estate market, appraisals are once again a key piece of the puzzle. As a home buyer or seller, it is very important to know how they can impact your side of the transaction.
What is a Home Appraisal?
A home appraisal is a professional, unbiased assessment of a property’s market value. It is conducted by a licensed appraiser. The appraiser evaluates the property’s condition, location, recent comparable sales and other market factors to determine its fair market value. Most enders typically require an appraisal during the mortgage approval process to ensure the home is worth the loan amount being requested. There was a period where appraisals were becoming less common, but now they are playing a key role in the mortgage lending process again.
Changing Home Appraisal Trends
During the peak of the seller’s market, bidding wars often led to buyers waiving appraisal contingencies and home inspections, or agreeing to cover appraisal gaps. But as the market cools and stabilizes, lenders are relying more heavily on appraisals once again—and buyers are less inclined to take on added risk. As a result, appraisal outcomes are once more influencing negotiations and affecting whether deals go through as planned.
How Does the Appraisal Affect the Transaction?
If a home appraises at or above the agreed-upon sale price, the transaction moves forward smoothly. But if the appraisal comes in low, it can create a serious hurdle. Buyers may not be able—or willing—to make up the difference. Sellers may have to lower their price or risk losing the sale. In some cases, renegotiations are possible, but not guaranteed.
For sellers, it’s important to price the home realistically and be prepared for the appraisal process. Overpricing a property can backfire if it doesn’t appraise at value. For buyers, understanding the appraisal contingency in your contract and knowing your options if the value comes in low is key to protecting your investment.
Helping You Make the Right Real Estate Decisions
The Cyr Team, led by Vincent Cyr, is a real estate advisory group serving buyers and sellers—both luxury and non‑luxury—across Chester, Delaware, and New Castle Counties (PA & DE). We deliver data‑driven market insights, negotiation excellence, and full‑lifecycle project management—from staging and inspections through closing. Our clients appreciate our structured systems, responsiveness, and the personal care we bring to every transaction.
If you are buying or selling a home in Southeastern Pennsylvania or Northern Delaware, contact us today for an introductory real estate consultation. We’ll be happy to answer any questions you have about home appraisals or any parts of the real estate process, so you can make better decisions throughout your move.