Ever wonder what really happens after you go under contract and the lender orders an appraisal? You are not alone. The appraisal can feel like a black box, but it has a big impact on your financing and your final sale price. In this guide, you will learn how appraisals work in Utah, what to expect in Farmington and Davis County, and how to navigate low valuations with confidence. Let’s dive in.
What a home appraisal is
An appraisal is an independent professional opinion of market value on a specific date. Licensed or certified appraisers follow industry standards and state rules to deliver an objective report your lender can rely on. The goal is to confirm the property supports the loan amount and to give both sides a neutral reference point during negotiations.
Why lenders require it
Lenders use the appraisal to validate the loan-to-value ratio. If the value supports the loan, financing can move forward. If not, the lender may not approve the full loan amount, which can affect how you structure the deal.
Appraisal types you may see
- Full interior inspection appraisal, the most common for purchases.
- Exterior-only or drive-by appraisal, sometimes used for lower-risk scenarios.
- Desktop appraisal or automated valuation review, completed using data and records.
- Reconsideration of value or review appraisal, when new information prompts a second look.
The Farmington appraisal timeline
In a typical purchase, the appraisal moves from order to underwriting review in about 7 to 14 days. Timing can shift with seasonality, appraiser availability, and loan type.
Here is what usually happens:
- Contract accepted, then the lender orders the appraisal within 1 to 3 business days.
- An appraiser is assigned and schedules the inspection, often within 3 to 7 business days.
- The inspection for most single-family homes takes 30 to 60 minutes, interior and exterior.
- The appraiser researches recent comparable sales and writes the report, often 3 to 7 days after inspection.
- The lender reviews the report in underwriting and may ask for clarifications.
Local conditions matter in Davis County. Spring and summer can run busy. Homes near Farmington’s Station Park corridor or close to Interstate 15 and commuter rail may require an appraiser with strong local knowledge of micro-markets. FHA and VA loans sometimes include additional property standards that add time.
What to expect during inspection
The appraiser verifies measurements, layout, condition, systems, and amenities and takes interior and exterior photos. They also review the neighborhood, access, and site features. Your role is to ensure full access and to have documents ready that support value.
How value is determined in Davis County
Appraisers weigh recent, nearby comparable sales the most. They adjust for differences in square footage, bedrooms and baths, lot size, age, quality, and condition. They also account for market trends, such as rising or flat prices, and the time since each comparable sale closed.
Location has a clear role. In Farmington, proximity to major employment corridors, commuter rail, and Station Park amenities can influence demand. Properties near high-traffic roads may receive negative adjustments for noise. Views, flood zones, zoning, HOA rules, and recorded easements are also factored. Upgrades supported by permits and documentation typically carry more weight than undocumented work.
Micro-markets exist within Farmington. Newer areas near mixed-use hubs can perform differently than established neighborhoods with older housing. When a home is unique or the market is shifting quickly, the appraiser relies on the best available closed sales and local insight.
What happens after the appraisal
Lenders base the loan amount on the lower of the purchase price or appraised value. Here are the most common outcomes and your options.
- Value at or above contract price. Financing proceeds, subject to underwriting.
- Value below contract price. You can:
- Bring cash to cover the gap.
- Ask the seller to reduce the price to the appraised value.
- Split the difference.
- Cancel under an appraisal contingency, if included.
- Ask the lender for a reconsideration of value with stronger comparable sales. Results are not guaranteed and may add time.
Some buyers receive appraisal waivers through automated underwriting, typically in lower-risk situations and more uniform neighborhoods. These waivers are not guaranteed. FHA and VA appraisals also review minimum property standards, which may require repairs or further inspections to close.
How to prepare your home for appraisal
A thoughtful prep can help the appraiser support your contract price. Focus on access, documentation, and obvious condition items.
Documents to gather
- Receipts and permits for renovations and major systems like roof, HVAC, electrical, and structural work.
- A concise list of relevant comparable sales with notes on similarities.
- HOA documents for condos or townhomes, plus utility info if on private systems.
- A survey or other lot documents if available.
Home preparation checklist
- Ensure full access to all rooms, the garage, attic, crawl spaces, and mechanicals.
- Turn on all utilities and confirm systems are operational.
- Tackle visible maintenance such as peeling paint or broken fixtures.
- Clean and declutter for a clear view of the home’s features.
- If snow or weather hides exterior condition, provide recent photos.
Common pitfalls to avoid
- Non-permitted additions or conversions that may be excluded from living area.
- Pricing based on active listings instead of closed sales.
- Limited interior access that forces an exterior-only appraisal.
- Inflated or irrelevant comps that weaken your case.
Strategy tips for buyers and sellers
You can reduce stress by planning for a range of outcomes and documenting your position.
Buyer strategies
- Align appraisal contingency language with your risk tolerance.
- Keep a plan to cover a gap with cash or to renegotiate if needed.
- Review the appraisal report to understand the comps and adjustments used.
- If you spot clear errors, submit additional comps or factual corrections to your lender and request a reconsideration.
Seller strategies
- If listing above recent closed sales, consider a pre-listing appraisal or a broker price opinion to understand risk.
- Price using local closed comps and be ready to document upgrades with permits and receipts.
- If you accept an above-asking offer, prepare for the possibility of a low appraisal and discuss negotiation paths in advance.
Negotiating after a low appraisal
- Renegotiate the price using the appraisal as a reference.
- Buyer brings cash to bridge the gap.
- Seller offers a closing cost concession while keeping the price.
- Buyer cancels per the appraisal contingency.
- Request a lender reassessment with stronger comps, understanding it may delay closing.
Final thoughts
Appraisals protect the loan and bring objectivity to pricing. In Farmington and across Davis County, timing, micro-market expertise, and solid documentation can make the difference between a smooth close and a scramble. Prepare well, know your options, and stay proactive if the value comes in low.
If you want a calm, clear plan for your appraisal and negotiation strategy, connect with Amanda House. You will get practical guidance, local insight, and design-forward advice tailored to your next move.
FAQs
Who pays for the appraisal in a Utah home purchase?
- The buyer typically pays for the lender-ordered appraisal as part of closing costs.
Can you appeal a low appraisal in Farmington?
- You can ask your lender for a reconsideration of value by submitting stronger comparable sales and factual corrections; outcomes vary.
Is an appraisal the same as a home inspection?
- No. An appraisal estimates market value, while a home inspection evaluates condition and needed repairs.
Can a buyer waive the appraisal contingency in Davis County?
- Yes, but it increases risk if the appraisal comes in below the contract price since you may need extra cash to close.
What if the appraiser did only an exterior inspection?
- Some loans allow exterior-only or desktop appraisals, which can be more conservative and may not meet every program’s requirements.
How do you verify an appraiser’s credentials in Utah?
- Appraisers are licensed or certified by the state; you can verify credentials through the Utah Division of Real Estate.
