The Lender Appraisal Process

When you make an offer on a home in Lakewood or Long Beach, your lender will send out an appraiser. But what happens during the appraisal, and what does it have to do with you buying the home?

Here’s what you need to know.

The Lender Appraisal Process

An appraiser is an independent expert who lets your lender know how much your home is worth. The lender relies on this person for an accurate figure. That’s because the bank doesn’t want to let you buy a house for too much money - especially because technically, it’s the bank’s money.

Let’s say a seller has a home listed for $500,000. The appraiser comes out and values the home at $450,000. The lender is going to tell you that it’ll let you borrow $450,000 - but not a penny more. That’s because if you buy a house that’s priced higher than it’s worth, you’re statistically more likely to default on your payments; the bank doesn’t want to take that kind of risk.

Do You Get to Hire Your Own Appraiser?

You don’t get to choose the appraiser your bank sends out. Lenders typically have relationships with appraisers they trust.

Make no mistake, though - you still have to pay for the appraisal.

How Does an Appraiser Figure Out How Much a House is Worth?

An appraiser will compare the house you want to buy with several other, similar houses in the same area. He or she will look at all the home’s features and compare them to homes that have already been valued. Lots of factors go into an appraisal, though - it’s not just about size and floor plan. It’s about the neighborhood, the extra amenities, and most importantly, the value of other, comparable homes.

Are You Buying or Selling a Home in Lakewood or Long Beach?


If you’re buying or selling a home in Lakewood or Long Beach, we can help. Call us at 562-882-1581 to find out how!


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