Whether you are preparing to sell your property or secure financing to purchase one, understanding what happens during home appraisal is a key part of the real estate transaction. In Falmouth, MA, where home values are influenced by coastal proximity, seasonal demand, and neighborhood characteristics, the appraisal process plays a critical role in determining a property’s market value. Buyers, sellers, and even refinancing homeowners should be informed about how appraisals work, what they include, and how the results can impact the final deal.
Kerrie Marzot, a trusted real estate professional serving Falmouth and Cape Cod, regularly guides clients through this phase of the transaction with clarity and local expertise. Whether working with year-round residents or second-home buyers along the coast, understanding the appraisal process helps eliminate surprises and keeps deals moving forward smoothly.
What Is a Home Appraisal?
A home appraisal is a professional, unbiased estimate of a property's market value conducted by a licensed appraiser. Lenders order appraisals to ensure that the property is worth the amount of money being loaned to the buyer. This safeguards the lender's investment and ensures that the buyer is not overpaying for the property.
In most cases, appraisals are required when a mortgage is involved, though they may also be requested during refinancing or home equity applications. For sellers, appraisals help validate listing prices. For buyers, they confirm whether the contract price aligns with current market conditions.
Understanding what happens during home appraisal can ease concerns and help all parties know what to expect from both the timing and outcome of the process.
In most cases, appraisals are required when a mortgage is involved, though they may also be requested during refinancing or home equity applications. For sellers, appraisals help validate listing prices. For buyers, they confirm whether the contract price aligns with current market conditions.
Understanding what happens during home appraisal can ease concerns and help all parties know what to expect from both the timing and outcome of the process.
Scheduling and Initial Steps
After a purchase agreement is signed, the buyer's lender will typically initiate the appraisal. The appraisal is conducted by a state-licensed appraiser who is not affiliated with either the buyer, seller, or their agents to ensure objectivity. In most situations, the appraisal is scheduled within a few days of the loan approval process, and the appraiser will contact the listing agent to arrange a visit.
For sellers in Falmouth, this is an important time to prepare the home—ensuring it's clean, clutter-free, and that all major systems are operational. While an appraiser is not conducting a home inspection, overall condition can influence the final valuation.
For sellers in Falmouth, this is an important time to prepare the home—ensuring it's clean, clutter-free, and that all major systems are operational. While an appraiser is not conducting a home inspection, overall condition can influence the final valuation.
What Happens During Home Appraisal On-Site?
When the appraiser arrives at the property, they will begin with a thorough walk-through of the home. This visit usually lasts between 30 minutes to an hour, depending on the size and complexity of the property. Appraisers are trained to evaluate both the interior and exterior of the home, taking note of structural integrity, overall condition, materials used, and any upgrades or renovations that could add value.
In a coastal community like Falmouth, appraisers will also consider location-based value factors such as water views, beach access, proximity to town centers, and neighborhood desirability. These features can significantly influence appraised value, especially when compared to inland or less sought-after areas of the Cape.
During the appraisal, the appraiser takes detailed measurements, photographs, and notes. They will document square footage, room count, flooring materials, kitchen and bath finishes, the age and condition of the HVAC system, roof, and any additions or detached structures. While cosmetic appeal does not directly influence the appraisal, a well-maintained property typically presents more favorably in terms of perceived value.
In a coastal community like Falmouth, appraisers will also consider location-based value factors such as water views, beach access, proximity to town centers, and neighborhood desirability. These features can significantly influence appraised value, especially when compared to inland or less sought-after areas of the Cape.
During the appraisal, the appraiser takes detailed measurements, photographs, and notes. They will document square footage, room count, flooring materials, kitchen and bath finishes, the age and condition of the HVAC system, roof, and any additions or detached structures. While cosmetic appeal does not directly influence the appraisal, a well-maintained property typically presents more favorably in terms of perceived value.
Comparable Sales and Market Data
A critical part of what happens during home appraisal involves analyzing comparable sales—or "comps"—in the area. The appraiser will identify recently sold properties that are similar in size, age, style, and location to the home being appraised. These comps are usually drawn from a 1 to 3-mile radius and are ideally closed within the last six months to reflect current market conditions.
In Falmouth, finding comparable properties can sometimes be complex due to the town’s diverse housing stock and seasonal fluctuations. Homes near the water or in village neighborhoods like Woods Hole, West Falmouth, or Sippewissett may command higher prices than homes further inland, even if similar in size. Appraisers adjust for these differences using market-supported value benchmarks, ensuring the final appraisal reflects realistic market activity.
The appraiser compiles this data, applies market adjustments where necessary, and formulates an opinion of value using standardized guidelines. These adjustments may account for factors such as lot size, extra bedrooms or bathrooms, upgrades like solar panels or renovated kitchens, and location premiums.
In Falmouth, finding comparable properties can sometimes be complex due to the town’s diverse housing stock and seasonal fluctuations. Homes near the water or in village neighborhoods like Woods Hole, West Falmouth, or Sippewissett may command higher prices than homes further inland, even if similar in size. Appraisers adjust for these differences using market-supported value benchmarks, ensuring the final appraisal reflects realistic market activity.
The appraiser compiles this data, applies market adjustments where necessary, and formulates an opinion of value using standardized guidelines. These adjustments may account for factors such as lot size, extra bedrooms or bathrooms, upgrades like solar panels or renovated kitchens, and location premiums.
How Appraisals Affect the Transaction
Once the appraiser completes their report—usually within five to seven business days—the lender receives the document and reviews the valuation. This number becomes critical to moving the transaction forward. If the appraised value meets or exceeds the contract price, the loan proceeds as expected. However, if the value comes in below the contract price, it may trigger renegotiations or delays.
Understanding what happens during home appraisal is especially important in markets like Falmouth, where demand can push sale prices higher than past comps may support. If the appraisal comes in low, the buyer may need to make up the difference in cash, the seller may reduce the price, or the deal may need to be adjusted or restructured.
For cash buyers, the appraisal is often optional, though many still choose to conduct one for peace of mind. For those refinancing, the appraisal determines the available equity in the home, which can impact interest rates and loan terms.
Understanding what happens during home appraisal is especially important in markets like Falmouth, where demand can push sale prices higher than past comps may support. If the appraisal comes in low, the buyer may need to make up the difference in cash, the seller may reduce the price, or the deal may need to be adjusted or restructured.
For cash buyers, the appraisal is often optional, though many still choose to conduct one for peace of mind. For those refinancing, the appraisal determines the available equity in the home, which can impact interest rates and loan terms.
Tips for Sellers and Buyers in Falmouth
For sellers, preparing your home for the appraisal is a wise move. Small updates, tidy presentation, and clear documentation of upgrades can help demonstrate value. Providing a list of improvements, such as a new roof, updated appliances, or recent HVAC replacements, gives the appraiser clear evidence of the home's maintained and enhanced condition.
For buyers, reviewing recent sales with your real estate agent before the appraisal can help set realistic expectations. A good agent will monitor appraisal timelines and communicate with the lender to ensure the process remains on track.
In a competitive market like Falmouth—where waterfront properties, historic homes, and seasonal vacation houses often have distinct valuation challenges—working with a local real estate expert is invaluable. An experienced agent can offer insight into how appraisers may view certain features and prepare both sides of the transaction for potential outcomes.
For buyers, reviewing recent sales with your real estate agent before the appraisal can help set realistic expectations. A good agent will monitor appraisal timelines and communicate with the lender to ensure the process remains on track.
In a competitive market like Falmouth—where waterfront properties, historic homes, and seasonal vacation houses often have distinct valuation challenges—working with a local real estate expert is invaluable. An experienced agent can offer insight into how appraisers may view certain features and prepare both sides of the transaction for potential outcomes.
Expert Guidance From Kerrie Marzot
Understanding what happens during home appraisal helps buyers and sellers navigate one of the most important steps in a real estate transaction. In Falmouth, where local market dynamics, seasonal trends, and unique property features all influence valuation, having the right guidance can make the process smoother and more predictable. Contact Kerrie Marzot today to receive expert assistance throughout your home sale or purchase—from pricing and staging to appraisal and closing. With deep knowledge of the Cape Cod market, Kerrie provides the insight and professionalism needed to achieve a successful result.
