Buyer's Guide

Understanding the Appraisal Process

Learn what happens during a home appraisal, why it matters for your mortgage, and how to prepare for different appraisal outcomes when buying a home in Vermont.

What Is a Home Appraisal?

A home appraisal is an unbiased professional opinion of a home's value, conducted by a licensed appraiser. When you're buying a home with a mortgage, your lender requires an appraisal to ensure the property is worth the amount they're lending you.

Important: The appraisal protects both you and the lender. It prevents you from overpaying and ensures the lender isn't loaning more than the property is worth. In Vermont, appraisals typically cost $400-$600 and take 7-10 days from order to delivery.

Typical Cost

$400-$600

Paid by buyer at loan application

Timeline

7-10 days

From order to final report

Purpose

Protect All Parties

Ensures fair market value

The Appraisal Process: Step by Step

Step 1: Lender Orders Appraisal

Once your offer is accepted and you apply for a mortgage, your lender orders the appraisal

Within 1-3 days of loan application

Lender selects licensed appraiser from approved list
You pay appraisal fee upfront ($400-$600 in Vermont)
Appraiser is independent - works for lender, not buyer or seller
Usually takes 3-7 days to schedule the inspection

Step 2: Appraiser Inspects Property

Licensed appraiser visits the property to assess condition and take measurements

30-60 minutes onsite

Measures square footage and room dimensions
Photographs interior and exterior
Notes condition, upgrades, and any issues
Reviews property features (bedrooms, bathrooms, garage, etc.)
Checks for safety hazards or structural concerns

Step 3: Research & Analysis

Appraiser researches comparable sales and analyzes market data

3-5 days

Identifies 3-6 comparable sales (comps) within 1 mile if possible
Comps should be similar size, age, condition, and sold within 3-6 months
Adjusts comp values for differences (finished basement, extra garage, etc.)
Reviews local market trends and neighborhood data
Considers Vermont-specific factors (well, septic, land size)

Step 4: Appraisal Report Delivered

Appraiser delivers detailed report to lender with final valuation

5-10 days from inspection

Report includes property description, photos, and floor plan sketch
Lists comparable sales with adjustments explained
Final appraised value stated clearly
Lender reviews report for accuracy and compliance
You receive copy of report (you paid for it!)

What Appraisers Evaluate

Size & Layout

Square footage, number of bedrooms/bathrooms, and functional layout

Age & Condition

Year built, recent updates, overall maintenance, and remaining useful life

Location

Neighborhood desirability, school district, proximity to amenities

Market Trends

Recent sales activity, inventory levels, and price direction in the area

Upgrades & Features

Kitchen/bath updates, finished basement, garage, deck, energy efficiency

Curb Appeal

Exterior appearance, landscaping, and first impression impact

Possible Appraisal Outcomes

Appraisal = Purchase Price

Best case scenario - transaction proceeds as planned

What Happens Next:

Your loan is approved based on agreed purchase price
Closing proceeds on schedule
No additional negotiations needed

Appraisal > Purchase Price

Great news - you're getting a good deal

What Happens Next:

Lender uses purchase price (not higher appraisal) for loan
You're building instant equity
Transaction proceeds smoothly

Appraisal < Purchase Price

Low appraisal - requires negotiation and problem-solving

What Happens Next:

Lender will only loan based on lower appraised value
You'll need more cash for down payment to cover gap
OR negotiate with seller to lower purchase price
OR request second appraisal (rare, requires evidence of error)
OR walk away if you have appraisal contingency

Vermont Appraisal Considerations

Unique factors that Vermont appraisers consider

Rural properties often have wider comp radius (3-5 miles) due to fewer sales

Well and septic systems are carefully noted and can affect value

Older homes (pre-1900) are common - age alone doesn't hurt value if well-maintained

Seasonal access issues (dirt roads, steep driveways) may be noted but rarely impact value significantly

Energy efficiency features (new windows, insulation, heat pumps) increasingly valued

Vermont appraisers understand local building styles (cape, colonial, farmhouse)

Land size matters more in Vermont than most states - extra acreage adds value

Questions About the Appraisal Process?

Understanding appraisals helps you prepare for different outcomes and avoid surprises. Let's discuss your specific situation.

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