By Joseph T Ellington Jr – Licensed Residential Appraiser, Capital Valuations. Updated September 2026.
How an appraisal fits a home purchase or refinance
When a buyer or homeowner finances a property, a lender may need a new appraisal or another acceptable valuation method. The appraisal answers a collateral value question for the lender’s transaction; it is not a home inspection, a repair warranty, or a promise that the contract price is correct. This guide walks through the financing process. For choosing an appraiser for a private assignment, use our separate local appraiser hiring guide.
Who orders the appraisal?
For a typical mortgage, the lender orders the appraisal and selects the appraiser or appraisal management arrangement under its independence rules. The borrower may pay a fee yet is not generally the client who controls the lender’s assignment. The Consumer Financial Protection Bureau explains that lenders may also use other valuation methods and that borrowers for covered first-lien mortgage applications are entitled to a copy of the valuation obtained by the lender. If you need your own separate appraisal for a sale decision, discuss a private assignment before ordering.
What the appraiser analyzes
Assignment requirements vary, but a residential appraiser can research the property’s rights, site, improvements, condition, market area, and relevant comparable sales. The report explains how those sales relate to the subject and reconciles the evidence to a supported opinion. A contract price is considered in context; it does not dictate the result. See our focused guides on comparable sales and size differences.
| Situation | Why a value is needed | Who decides the loan |
|---|---|---|
| Purchase | Collateral support for a proposed loan and sale transaction | Lender; buyer and seller decide contract responses |
| Refinance | Collateral support for a new loan on an existing property | Lender under its underwriting rules |
| Private pre-listing appraisal | Independent information for a seller’s decision | Seller decides how to use it; future lender may order its own valuation |
From inspection to report
- The lender or private client defines the assignment and orders it.
- The appraiser gathers records and, when the scope calls for it, visits or collects property information.
- The appraiser analyzes market evidence and develops an independent opinion.
- The report goes to the client under the assignment terms. For a mortgage, the lender provides the borrower a copy as required.
If the number differs from the sale price
Read the report before assuming it contains an error. A lower conclusion may lead the buyer, seller, and lender to discuss their available options under the contract and loan. The CFPB outlines questions for buyers facing a low appraisal. If you find specific factual issues or better comparable evidence, ask the lender about its reconsideration of value process. The appraiser cannot be pressured toward a particular number.
What to do as a Hampton Roads homeowner
Keep accurate records of completed improvements, access, and any relevant property documents. Explore our mortgage appraisal service overview and inspection versus appraisal article for the next distinction. For an independent private valuation, contact Capital Valuations with the intended use.
