If you're buying a home, your lender may order an appraisal during escrow — but what is an appraisal, and why does it matter? In this video, Katherine Brough with Seven Gables Real Estate explains what a home appraisal is, why lenders require it, and how it's different from a home inspection.
An appraisal is a licensed appraiser's opinion of value. If the buyer is getting a loan, the lender usually wants to confirm the home supports the purchase price before finalizing the financing — which means understanding what appraisers look at, how comparable sales ("comps") factor in, and what can happen if the appraisal comes in low.
If you're buying a home in Orange County, it's worth understanding the appraisal process before writing an offer and before removing contingencies. Reach out — Katherine is happy to help you understand the process and stay protected from offer to closing.