Tag: appraisal values

What Is a Real Estate Appraisal in Orlando, Florida?

Posted on by John Conde

A real estate appraisal is an independent, professional opinion of a home’s value based on recent sales, property condition, location, and market trends. Lenders require appraisals to confirm a home’s value supports the loan amount, helping protect buyers, sellers, and banks from overpaying or over-lending.

What Is an Appraisal?

An Appraisal is a written valuation report prepared by a licensed appraiser who analyzes comparable sales, the property’s features, and local market conditions. In real estate transactions, appraisals are most commonly required when a buyer is using a mortgage.

Why Home Appraisals Matter in Real Estate

  • Protects buyers from overpaying
  • Protects lenders from excessive risk
  • Helps sellers price homes realistically
  • Impacts loan approval and terms

In hot markets like Orlando, appraisals often become a negotiation point—especially when bidding wars push prices above recent comparable sales.

How the Home Appraisal Process Works

  1. The lender orders the appraisal after the contract is signed
  2. A licensed appraiser inspects the property
  3. Comparable sales (comps) are analyzed using data from the MLS
  4. A final valuation report is delivered to the lender

Most residential appraisals in Central Florida take 7–10 days from order to completion.

What Appraisers Look At

  • Recent comparable sales from MLS.com
  • Square footage and layout
  • Property condition and upgrades
  • Lot size and location
  • Neighborhood trends

What an Appraisal Is NOT

  • A home inspection
  • A guarantee of future value
  • A reflection of emotional or cosmetic appeal alone

Appraisal vs. Inspection: Key Differences

Appraisal Inspection
Determines value Evaluates condition
Ordered by lender Ordered by buyer
Focuses on market data Focuses on defects and safety

How Appraisals Work in Orlando

Orlando appraisals are heavily influenced by:

  • Rapid neighborhood appreciation
  • Short-term rental activity
  • HOA restrictions
  • Proximity to attractions, schools, and employment hubs

In Central Florida, new construction and investor activity can cause pricing gaps between contract price and appraised value. This is where strong negotiation and local expertise matter.

Common Appraisal Problems in Central Florida

  • Low appraisals due to limited comps
  • Renovations not adding full dollar-for-dollar value
  • Rapidly rising prices outpacing closed sales

What Happens If an Appraisal Comes in Low?

  • Renegotiate the purchase price
  • Buyer brings additional cash
  • Request a reconsideration of value
  • Cancel the contract (if appraisal contingency applies)

Tips to Avoid Appraisal Issues

  • Price the home realistically
  • Document recent upgrades
  • Work with a knowledgeable Realtor in Orlando
  • Understand neighborhood-specific pricing trends

FAQs About Home Appraisals

What is an appraisal in real estate?

An appraisal is a professional estimate of a home’s market value used by lenders to approve mortgage financing.

Who pays for the appraisal?

The buyer typically pays for the appraisal as part of closing costs.

How much does a home appraisal cost in Orlando?

Most appraisals range from $450–$650 depending on property type.

Can a home appraise for more than the purchase price?

Yes, but lenders base loans on the lower of appraised value or contract price.

Do cash buyers need an appraisal?

No, unless the buyer chooses to order one independently.

How long is an appraisal valid?

Typically 120 days, depending on loan type.

Can a seller challenge an appraisal?

Sellers can provide additional comps but cannot directly order changes.

Do upgrades always increase appraisal value?

No. Some improvements add less value than their cost.

Are appraisals different for condos?

Yes. Condo appraisals rely heavily on recent sales within the same complex.

Work With Orlando Realty Consultants

At Orlando Realty Consultants, we help buyers and sellers navigate appraisal challenges with real, local market insight—not guesswork.

Serving Central Florida
Call or text 407-902-7750
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Whether you’re buying, selling, or renegotiating after a low appraisal, having the right strategy can save you thousands.

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Should Orlando Sellers Get Their Own Appraisals?

Posted on by Jenny Zamora

Should I get my home appraised before I get a buyer so that we can make sure it appraises for what we want?”  This is a question I get from Orlando Sellers sometimes and then I ask them… “Would you accept an appraisal that was provided by someone that owns the house that you want to buy?”  Their answer is always…”probably not”.  With all the horror stories about bad appraisals and bad inspections lately being the cause of deals falling apart, I don’t blame sellers for wanting to get their own appraisals or inspections done to make sure they get it right. I’ve been on the receiving end of that scenario quite a few times lately with some of my own clients getting bad appraisals causing deals to fall apart.

Unfortunately, if you’re a seller, getting your own appraisal or inspection done is usually a waste of money. Today’s educated buyer is skeptical of appraisals that are paid for by the seller.  Especially when pre-listing appraisals are ALWAYS above the listing price. You’ll see verbiage like “Appraisal value $350,000 price reduced to $280,000”. When I see things like that it makes me feel like I’m dealing with a used car salesman. The truth is that it’s reduced because the market or buyers don’t agree and claiming that it appraised higher than the true market value will just ruin your credibility.

No appraiser in the world can tell you precisely what a house will sell for when it’s listed. At the end of the day, Appraisals and inspections are opinions just like BPO’s [broker price opinion] when you’re dealing with a short sale.

Here are some things that immediately come to mind when a seller tries to provide their own appraisal.

* Does the seller or listing agent have a personal relationship to the appraiser?

* Is the appraiser credible? What’s his background?

* When EXACTLY was the appraisal done? Is it up to date?

* Who paid for the appraisal?

Orlando Sellers Should Let Realtors Do Their Job

Instead of paying several hundred dollars for an appraisal or an inspection that probably won’t be accepted anyway, why not let the realtor do their job. Orlando real estate agents should be able to give you a very good estimation of how much the house will sell/appraise for.  Realtors have all the tools and knowledge that they need to provide you with good solid figures of how much to list the house for. When doing a comparative market analysis [CMA] they take comparable properties that have been recently sold in the same area. Done properly, the CMA will get you very close to what the house should be listed for as well as what it should appraise for.

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What happens when an Orlando Short Sales get approved for more than appraisal value?

Posted on by Jenny Zamora

When a buyer puts in an offer on an Orlando short sale property, that person believes that they are getting a great deal. Many times this ends up being the case and after several months of waiting…the bank approves the offer but don’t celebrate yet,…  there are still a few things that can make the deal fall apart.

The appraisal is a crucial and unavoidable part of this process. let’s say for instance that the bank approved your short sale offer of $100,000.00, the next step is to get your financing in line which means getting the property appraised, inspected, etc. The issue now is to get the property to appraise for at least the amount of the contract. If the property falls short on the appraisal, let’s say $95,000.00, then there’s a problem because your lender is not going to approve a loan for $100,000.00 for a house that just appraised for $5,000.00 less.

How and why does this happen?

Appraisers have to go off of recently sold properties only, not pending properties, or active properties. So even though the BPO may have come in at a higher valuation, the reason is that BPO agents have a bit more leeway on what comparables they are able to use. As opposed to appraisers, BPO reports may include active listings, pending listings, in addition to sold listings in order to determine true valuation.

Will the short sale lender adjust the approval price to match the appraisal price?

Most lenders will actually change their payoff letter so that the deal can go through. As a matter of fact, this is something that happens all of the time in our office. The only drawback is that it takes a bit longer because there’s a process which typically 2 to 3 weeks. It all comes down to how much of a hurry the buyer is in to buy the house. If the buyer is in a position to wait the extra time, then this actually benefits them because they get an even better deal than the original price.

Lenders like Fannie Mae for instance are less likely to lower the approval amount regardless of the appraisal value. I know what you’re thinking and I agree… It makes no sense.

What happens if the lender is unwilling to adjust the approval price?

There are a couple of different scenarios that may ensue if the lender doesn’t want to lower their payoff amount. One thing that can happen is that the buyer walks away and keeps looking for another Orlando short sale. Another way to get around this issue is if it’s a cash buyer that really wants the property. However, not too many people will purchase a property for more money than the appraised value unless it holds some kind of sentimental value for them.

Need help with a short sale? Call our office at 407-902-7750

Orlando short sale expert

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