by Daniel Yoon | eXp Realty | Richmond, Virginia
A home appraisal in Richmond, Virginia costs $450 to $650 and is ordered by your lender to confirm the home is worth what you agreed to pay. If the appraisal comes in low, it changes the deal. Here is how appraisals work, why they come in low, and what to do when they do.
How the Appraisal Process Works
After you go under contract, your lender orders an appraisal from a licensed appraiser. The appraiser visits the property, measures it, photographs it, and evaluates its condition. They then compare it to 3 to 5 recently sold homes (comps) within a mile to determine fair market value. The process takes 7 to 14 days.
What Appraisers Look At
- Square footage and room count
- Condition of major systems (roof, HVAC, plumbing, electrical)
- Quality of finishes and upgrades
- Lot size and location
- Comparable recent sales in the area
- Neighborhood trends and market conditions
When Appraisals Come in Low
In the Richmond market, approximately 10% to 15% of appraisals come in below the contract price. This happens most often when buyers offer above asking in competitive situations or when comparable sales have not caught up to current pricing.
Your Options If the Appraisal Is Low
- Renegotiate: Ask the seller to reduce the price to match the appraisal. In the current Richmond market, most sellers will negotiate rather than lose the deal.
- Split the difference: You pay some of the gap in cash, the seller reduces some. Common compromise.
- Pay the gap: Bring additional cash to closing to cover the difference between the appraised value and the contract price.
- Request a reconsideration of value: Your agent can submit additional comps that the appraiser may have missed. This works about 20% to 30% of the time.
- Walk away: If you have an appraisal contingency, you can cancel the contract and get your earnest money back.
For Sellers: How to Support Your Home’s Value
- Provide the appraiser with a list of recent upgrades and improvements with costs
- Make sure the home is clean and accessible on appraisal day
- Share a list of comparable sales that support your price (your agent should prepare this)
FAQs
How much does a home appraisal cost in Richmond VA?
$450 to $650 for a standard single-family home. Larger homes, rural properties, and unique properties may cost more. The buyer typically pays for the appraisal.
What happens if the appraisal is lower than the offer price?
You can renegotiate the price, pay the difference in cash, request a reconsideration of value, or walk away if you have an appraisal contingency. Your agent should guide you through the best option for your situation.
Can I dispute a low appraisal in Virginia?
Yes. Your agent can submit a reconsideration of value with additional comparable sales data. This is successful about 20% to 30% of the time. You cannot hire a second appraiser through the same lender, but you can switch lenders and start a new appraisal process.
Dealing with an appraisal issue? Call Daniel Yoon at (804) 896-2694. I handle appraisal challenges regularly and know how to protect my clients on both sides of the transaction.