FAQ: Why is an appraisal important when buying or refinancing a home?

Whether you’re buying a home or refinancing, the appraisal plays a key role.

For buyers, it provides an objective assessment of the home’s market value, helping confirm that the purchase price is reasonable and giving lenders confidence that the property supports the loan. For refinances, the appraisal determines how much equity you have and ensures you don’t borrow more than the home is worth.

A licensed appraiser evaluates the property’s condition, upgrades, and how it compares to similar homes nearby. Because of this, a little preparation can go a long way – especially for refinances. Improving curb appeal, decluttering, refreshing paint, testing major systems, and providing a list of recent upgrades can help present the home in its best light.