Offer accepted in Lincoln and wondering what happens next? The appraisal can feel like a black box, especially if this is your first purchase. You want clear answers on timing, what the appraiser looks for, and what to do if the value comes in lower than your contract price. This guide walks you through the process step by step so you can stay calm, stay ahead, and keep your closing on track. Let’s dive in.
What a home appraisal is
A home appraisal is an independent, lender-ordered valuation that estimates a property’s market value. Lenders use it to confirm the home is worth the amount they are lending and to flag major condition issues that may affect the loan. The goal is to protect the lender and, indirectly, you. You can read a straightforward overview in the Consumer Financial Protection Bureau’s guide on what a home appraisal is.
Who orders and who pays
Your lender orders the appraisal after you apply for the loan. The fee is typically collected from you and appears in your closing costs. Costs vary by property type and market conditions, and national consumer sources often cite a range in the low- to mid-hundreds of dollars, which aligns with Bankrate’s guidance on appraisal costs. Ask your lender for the most accurate local estimate.
Who performs the appraisal
Licensed or certified appraisers complete the report and must follow professional standards and your loan program’s rules. Appraisers evaluate the home’s condition, layout, features, and recent comparable sales to reach an opinion of value. For certain loans, like FHA, the appraiser also checks for specific health and safety items.
What the appraiser evaluates
Expect the appraiser to review recent comparable sales, the home’s size and layout, quality of finishes, age of systems, and any updates or additions. Location and market trends are also part of the analysis. For condos or HOA properties, the appraiser may review HOA documents and comparable unit sales.
Types of appraisals you may see
- Full interior appraisal, the most common for purchases.
- Exterior-only or desktop appraisal, used in limited cases when allowed by the lender and loan program. These are less common for FHA and some higher loan-to-value scenarios.
Timeline and logistics in Lincoln
The appraisal typically takes place after your offer is accepted and your loan application is in. The appraiser then schedules the inspection at the home. In many markets, scheduling happens within 3 to 10 business days from order, and the report is often delivered 3 to 10 business days after the inspection. Bankrate’s timeline overview reflects this general range.
In Lincoln and across Lancaster County, timing can stretch during busy spring and summer seasons or with unique properties like acreage or custom builds. A reasonable expectation is one to three weeks from order to report delivery, but always confirm current timelines with your lender and agent. If the appointment or report slips past expectations, ask for a status update so you can protect your closing date.
How appraisals affect your loan
If value meets or exceeds your price
Underwriting usually proceeds as planned. Your lender continues reviewing income, assets, title, insurance, and any other loan conditions on the path to clear-to-close.
If the appraisal comes in low
Lenders base the maximum loan amount on the appraised value, not the contract price. You can negotiate with the seller, bring cash to cover the gap, or use an appraisal contingency if your contract includes one. If you believe there are factual errors or stronger comparable sales, you can ask your lender about a formal challenge called a Reconsideration of Value. The CFPB explains how to dispute an appraisal through your lender’s process.
If repairs are required
If the appraiser notes safety or habitability issues, your lender may require repairs before closing. FHA loans have explicit minimum property standards in HUD Handbook 4000.1. Repairs can be handled by the seller, by you, or through credits, and the appraiser may need to reinspect.
Appraisal waivers and automated valuations
Some conforming loans qualify for an appraisal waiver or use automated valuations. This depends on your loan program and the strength of the data the lender has. Ask your lender at application if a waiver is possible for your file.
Appraisal contingency basics
Your appraisal contingency protects you within a set time window if the appraised value is lower than the purchase price or if the report is otherwise unsatisfactory. Contingency timelines vary by contract form. Review deadlines with your agent and lender so you can act quickly if needed.
Common outcomes and what to do next
Appraises at or above contract price
- Proceed with underwriting and keep fulfilling other loan conditions.
- Confirm you have homeowner’s insurance, title work, and any remaining documents ready.
Appraises slightly below contract price
- Discuss options with your agent: price reduction, seller credit, splitting the difference, or bringing cash.
- Consider an ROV through your lender if there are strong, recent comparable sales or factual errors.
- Keep your contingency and financing timelines in mind as you negotiate.
Appraises well below contract price
- Revisit your budget and goals with your agent and lender.
- Request an ROV if justified and allowed by your lender.
- If negotiations do not work, your appraisal contingency may give you the option to cancel.
Appraisal flags required repairs
- Get estimates and agree on who completes repairs.
- Coordinate reinspection and documentation with your lender to clear the condition.
Two quick examples
- Example A: Contract price 320,000, appraisal 310,000. The lender bases the loan on 310,000. You can ask the seller to reduce the price, bring 10,000 in cash, or split the gap.
- Example B: Appraisal notes roof issues and requires repair. Seller completes repair and provides invoice. After reinspection, the lender clears the condition and you proceed to close, possibly with a short delay.
Buyer checklist to reduce surprises
Before the appraisal
- Share a list of recent upgrades with dates and costs, plus any permits and contractor receipts.
- Provide your agent with recent comparable sales you believe are relevant.
- Make sure the home is accessible, utilities are on, and all areas are unlocked for the appraiser.
- For condos or HOAs, gather key documents that show fees and budgets.
During scheduling
- Confirm the appointment date and who will be present.
- If you attend, keep it brief and courteous, and provide your documentation rather than debating value on site.
After the report
- Review the appraisal with your agent and lender right away.
- If you spot factual errors, request corrections through the lender’s appraisal review process.
- If value is low, discuss ROV eligibility, negotiation strategies, or cash-to-close scenarios.
Local resources
- Lancaster County Assessor and property records. Use county data to verify legal property details, tax records, and parcel information. Start with the Lancaster County Assessor.
- CFPB homebuyer education. The CFPB’s borrower guides on what an appraisal is and how to dispute an appraisal explain your rights and steps.
- FHA appraisal standards. If you are using FHA financing, review HUD Handbook 4000.1 for common safety and condition requirements.
Buying in Lincoln should feel clear and manageable. With the right prep and quick communication, the appraisal can be a smooth checkpoint on your way to the keys. If you want local guidance, negotiation support, and steady updates from contract to close, connect with Selling Sisters. Start with a quick call to Rachel Rentschler to schedule a consultation.
FAQs
How long do appraisals take in Lincoln?
- Many appraisals take one to three weeks from order to report delivery, but timing depends on appraiser availability, season, and property complexity, so confirm your lender’s current estimate.
Who pays for the appraisal and how much does it cost?
- You pay the appraisal fee as part of closing costs, and national consumer sources like Bankrate note that typical fees land in the low- to mid-hundreds of dollars, with local variation.
What happens if the appraisal is lower than my purchase price?
- Your lender bases the loan on the appraised value, so you may renegotiate, bring cash to cover the gap, or use your appraisal contingency; you can also ask your lender about a Reconsideration of Value.
Can I attend the appraisal inspection?
- You may be present if the seller and appraiser allow, but it is best to share documentation and comparable sales through your agent and lender rather than debating value during the visit.
Do FHA appraisals have extra requirements?
- FHA appraisals include checks for health and safety items and minimum property standards described in HUD Handbook 4000.1, which can trigger repair conditions before closing.
