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How Home Appraisals Work
The appraisal is one of the most important — and sometimes stressful — steps in the mortgage process. Here is what you need to know as a buyer or seller in Bakersfield.
Start Your Pre-ApprovalWhat Is a Mortgage Appraisal?
A mortgage appraisal is an independent valuation of the property by a licensed appraiser. The lender orders the appraisal to confirm that the home is worth at least as much as the purchase price before lending against it. If the appraised value is lower than the purchase price, the lender will only lend based on the appraised value — creating a gap the buyer must address.
What Appraisers Look For
- Interior and exterior condition of the home
- Square footage, number of bedrooms and bathrooms
- Lot size, garage, and outdoor features
- Age of major systems (roof, HVAC, plumbing, electrical)
- Comparable recent sales ("comps") within 1 mile and 6 months
- Neighborhood quality, proximity to amenities and services
- Any visible defects, deferred maintenance, or safety hazards
What Happens If the Appraisal Comes In Low?
A low appraisal does not mean the deal is dead. You have several options:
Negotiate a lower purchase price
The seller may agree to lower the price to match the appraised value. This is the most common outcome — sellers often prefer a lower price to a failed sale.
Pay the difference in cash
If you have the funds, you can make up the gap between the appraised value and purchase price with additional cash at closing. The lender still bases the loan on the appraised value.
Request a reconsideration of value (ROV)
If you believe the appraisal is inaccurate, your lender can submit an ROV with additional comparable sales that support a higher value. Appraisers are required to review and respond.
Order a second appraisal
In some cases, a second appraisal may produce a different result — particularly if the first appraiser used questionable comps. This is lender-dependent and is not always an option.
Walk away (if you have an appraisal contingency)
Most purchase contracts include an appraisal contingency. If the appraisal comes in low and no resolution is reached, you can exit the contract and recover your earnest money deposit.
How to Prepare for a Home Appraisal
These steps — especially for sellers — can help support the highest defensible appraised value.
- Have a list of recent renovations and upgrades ready for the appraiser
- Make sure all systems are accessible (HVAC, attic, crawl space)
- Repair obvious defects — broken windows, leaking faucets, missing fixtures
- Clean and declutter (appraisers assess condition, and presentation matters)
- Provide comparable sales you are aware of if you believe your agent missed any
- Be present to answer questions, but let the appraiser work independently
VA and FHA Appraisals: Extra Requirements
VA and FHA appraisals include Minimum Property Requirements (MPRs) and Minimum Property Standards (MPS) respectively. These programs require the property to meet specific health and safety standards — not just a value assessment. Common issues: peeling paint (pre-1978 homes), exposed electrical, missing handrails, evidence of pest infestation, or roof at end of life. Sellers should address visible issues before an FHA or VA appraisal.
Questions About the Appraisal Process?
Omar can walk you through what to expect and how to navigate a low appraisal if one occurs.
My Mortgage Company, Inc. · CA DRE #02168831 · NMLS #2269164. Appraisal costs and processes vary by lender and property type. VA and FHA appraisals are conducted by HUD- or VA-approved appraisers. This is educational information only. All figures, rates, fee ranges, and examples shown on this page are for informational purposes only and are not a guarantee of rates, fees, loan terms, or qualification. This is not a commitment to lend.