How Home Appraisals Work

Are you wondering how a home appraisal could help or hurt your purchase or sale? You are not alone. Appraisals can feel mysterious, yet they play a big role in financing and negotiations. In this guide, you will learn what an appraisal is, who orders it, how value is set, what the typical timeline looks like in Connecticut, and what to do if the number comes in low. Let’s dive in.

Appraisal basics

A home appraisal is a licensed appraiser’s independent opinion of market value as of a specific date. Lenders use it to help decide how much they are willing to lend and to flag any condition or safety issues for some loan types. Appraisals follow national standards called USPAP, which are overseen by The Appraisal Foundation.

In a financed purchase, your lender orders the appraisal to preserve independence. You do not pick the appraiser, and neither does the seller. The Consumer Financial Protection Bureau explains that lenders control this process to ensure unbiased results. If you want your own opinion of value, you can hire a private appraiser, but the lender will still require its own appraisal for underwriting.

Appraisers in Connecticut are licensed by the state. You can learn more about licensing and oversight through the Connecticut Department of Consumer Protection.

Common appraisal types

• Full appraisal with an interior and exterior inspection, which is most common in purchase mortgages.
• Desktop or drive-by valuation, sometimes used in specific loan programs or for less complex cases.
• Appraisal waiver or automated valuation model on some conventional loans. FHA and VA loans require an on-site appraiser inspection, so waivers are not used for those.

How appraisers set value locally

Appraisers rely on several methods to estimate value. The most important for single-family homes is the Sales Comparison Approach.

Sales Comparison Approach

With the Sales Comparison Approach, the appraiser studies recent, comparable closed sales and adjusts for differences like square footage, lot size, age, condition, bedroom and bath count, and location. The Appraisal Institute provides a useful overview of this approach. In fast-moving markets, more recent sales often carry greater weight.

Other approaches

• Cost Approach: estimates what it would cost to rebuild the home today, minus depreciation, plus land value. This can be helpful for newer or one-of-a-kind properties.
• Income Approach: used more for investment properties and some condos where rental income is a key factor.

Factors that influence value

Fairfield County towns have collections of micro-markets. Appraisers pay attention to:

• Neighborhood and coastal location. Using Norwalk for example, SoNo, Rowayton, Cranbury, and East Norwalk each have distinct pricing patterns. Proximity to Long Island Sound can lift value for water views and beach access, while flood risk can reduce marketability.
• Flood zones and elevation. Flood status affects insurability and may require mitigation. You can check a property’s flood zone through the FEMA Flood Map Service Center.
• Condition and upgrades. Documented renovations in kitchens, baths, and mechanical systems often support higher value. Keep permits, invoices, and dates handy.
• Local market trends. Inventory, days on market, and pending sales help appraisers assess whether prices are rising, stable, or softening.
• Property taxes and assessments. Tax levels influence monthly costs and buyer affordability. For statewide mill rates and municipal tax data, see the Connecticut Office of Policy and Management. For parcel-level details, the Norwalk Assessor’s office provides property records.
• Housing type and rules. Condos require a look at association documents and reserves. Historic or coastal properties may have added restrictions that affect marketability.

Where the appraisal fits in your CT timeline

Most lenders order the appraisal within a few days after you have a signed contract and submit your loan application. Here is a typical flow in Connecticut:

1. Order placed by lender: usually within 1 to 5 business days after contract submission.
2. Scheduling the inspection: often within 3 to 10 days, depending on appraiser availability and property access.
3. Report completed: commonly 7 to 14 days from order, longer if the property is complex or the market is busy.
4. Underwriting review: the lender reviews the report, which can take 1 to 7 days.

From order to final report, expect about 1 to 3 weeks in many cases. Many Connecticut contracts target 45 to 60 day closings, sometimes extending to 90 days. Your specific contingency and financing deadlines control the process, so track those dates closely.

In Fairfield County, peak seasons can create backlog. Unique or waterfront homes may take longer if comparable sales are scarce.

If the appraisal comes in low

A low appraisal does not have to end the deal. It does change the math. Lenders base the loan amount on the lower of the appraised value or the purchase price, subject to your loan-to-value limit. If the appraisal is lower than your contract price, you may have to bring more cash, adjust the price, or both.

Common paths forward include:

• Renegotiating the purchase price to the appraised value.
• Splitting the gap, with a partial price reduction plus buyer cash.
• Bringing additional cash to closing to cover the shortfall.
• Asking your lender for a reconsideration of value by providing better comparable sales, proof of upgrades, and corrections of any factual errors.
• Seeking a second appraisal if your lender’s rules allow it. Lenders are not required to accept a new appraisal unless their policy permits.
• Exercising your appraisal or financing contingency rights if you cannot obtain financing on the agreed terms, subject to your contract deadlines.

Program rules matter. FHA and VA loans include minimum property requirements, and both require an appraiser’s on-site inspection. Learn more through HUD’s FHA resources and the VA home loan program. Conventional loans follow investor rules from Fannie Mae and Freddie Mac, and some may qualify for appraisal waivers at the outset, depending on data and risk.

Requesting a reconsideration of value

If the number seems off, focus first on accuracy and evidence:

• Confirm facts: square footage, beds and baths, and all finished areas are correct. Share permits and floor plans if available.
• Provide stronger comps: recent, nearby, and similar in style and condition. Ask your agent to help compile an organized set.
• Document upgrades: dates, invoices, permits, and before-and-after photos.
• Send your package to the lender, who can request a reconsideration from the appraiser. Results vary by lender and program.

Prep tips for sellers and buyers

For sellers

• Price to closed data, not just list prices. Consider a private pre-listing appraisal from a Connecticut licensed appraiser if you want more confidence before going live.
• Create an “appraisal package” for the appraiser: a dated list of improvements, permits, invoices, recent comparable closed sales, and full access to all spaces.
• Address deferred maintenance. Tidy the home and complete obvious repairs that could hurt perceived condition.
• Work with your agent and attorney on clear contingency language that sets expectations and timelines.

For buyers

• Secure a strong pre-approval and review appraisal and financing contingencies early so you understand the timing and options.
• Consider an appraisal gap strategy if you expect competition. Decide how much additional cash you are comfortable adding if needed, and document those terms carefully.
• Research flood zones and estimated insurance costs if you are looking near the coast. Use the FEMA Flood Map Service Center for property-level data.
• For condos, collect association financials and ask early about reserves and any special assessments.
• If you want more certainty before bidding, you can order a private pre-offer appraisal. Your lender will still order their own for underwriting.

Your next step

Appraisals are manageable when you know the playbook and have the right partner. If you are buying or selling, you deserve a calm, evidence-based plan and clear communication at every step. For local guidance, pricing strategy, and hands-on support before and after the appraisal, reach out to Marlee Book. She will help you prepare, set expectations, and negotiate with confidence.

FAQs

Who pays for the purchase appraisal?

• The buyer typically pays for the lender-ordered appraisal as part of loan fees, while a seller may choose to pay for a private pre-listing appraisal.

Can I force the lender to accept a second appraisal?

• No. Lenders follow investor and program rules. They may order a second appraisal or review at their discretion, but they do not have to accept one you obtain on your own.

What if the appraiser missed a major upgrade in my home?

• Gather permits, invoices, dates, and photos, then ask your lender to request a reconsideration of value so the appraiser can correct factual errors or consider the additional evidence.

Are appraisal waivers common?

• Appraisal waivers appear on some conventional loans when data and risk fit investor criteria, but they are not used for FHA or VA loans that require an on-site appraisal.

How do flood zones affect appraisals?

• Flood zones influence insurability and monthly costs. Appraisers note flood risk, and required insurance can reduce buyer affordability and value relative to similar non-flood properties.

How long does an appraisal take in Connecticut?

• From order to completed report, many appraisals take 1 to 3 weeks, with longer timelines possible during busy seasons or for unique coastal properties.