Sellers typically do not see the buyer’s appraisal, as it is ordered and paid for by the buyer/lender. However, if the appraisal comes in below the purchase price, the buyer must often share it to renegotiate or cancel the deal. Otherwise, the seller is only told if the home appraised "at value".
While getting an appraisal is a necessary part of the home buying process, sometimes pre-listing appraisals may hurt the seller rather than help. Here are some reasons why you may want to think twice about getting an early appraisal. Early appraisals may not account for changing markets.
If you're a seller, you can ask your real estate agent to request a copy of the report from the buyer or their agent — but it's up to them whether to share it. If you have serious concerns about an appraisal report's accuracy, it's possible to challenge it.
Once the contract is signed, most sellers cannot raise the price unilaterally because of a high appraisal. Texas purchase contracts usually lock in the offer amount. Still, some sellers may reconsider accepting lower offers if high appraisals become a market trend.
Professional appraisers follow the Uniform Standards of Professional Appraisal Practice (USPAP), which requires strict confidentiality in handling client information. This means appraisers cannot share details of the client's appraisal with anyone else without your explicit written consent.
The seller often does not generally get a copy of the appraisal, but they can request one. The CRES Risk Management legal advice team noted that an appraisal is material to a transaction and like a property inspection report for a purchase, it needs to be provided to the seller, whether or not the sale closes.
The "3-day appraisal rule" refers to requirements under the Equal Credit Opportunity Act (ECOA) for mortgage lenders to provide borrowers with a free copy of the appraisal (and other valuations) at least three business days before loan closing, and to notify them of this right within three business days of application; borrowers can waive the pre-closing timing, but the lender must still provide it promptly. This ensures borrowers see the property's value before committing to the loan, though the lender must also provide it promptly upon completion, even if the loan doesn't close.
The "3-3-3 rule" in real estate isn't a single guideline but refers to different strategies: for buyers, it's about financial readiness (3 months savings, 3 months reserves, 3 property comparisons) or a financial affordability check (30% income, 30% down, 3x income); for agents, it's a marketing habit (call 3, note 3, share 3) or prospecting (talking to everyone within 3 feet). There's also a developer rule (1/3 land, 1/3 build, 1/3 profit), though it's considered outdated by some.
The appraiser provides a report to the lender, and in most cases the lender is required to provide a copy to you. The appraisal report will share the appraiser's analysis that supports the valuation of the home, and it will include photos and descriptions of comparable home sales.
For buyers with an appraisal contingency, walking away from the deal without any financial penalty is an option. In a buyer's market, you're typically in a favorable position to renegotiate the sales price with the seller. Depending on the seller, you might come to a new sales price that reflects the appraisal value.
Red flags when buying a house include structural issues (foundation cracks, sloping floors), water problems (stains, musty smells, basement flooding signs, poor drainage), sloppy renovations (fresh paint covering damage, crooked finishes, DIY work), bad maintenance (old roof, deferred upkeep), and listing/market oddities (long time on market, multiple price drops, little info). Always get a professional inspection to uncover hidden issues with major systems like electrical, plumbing, HVAC, and roofing before buying.
A lowball offer is when a buyer makes an offer on a house that is significantly below the asking price. Typically, this offer is 10-30% below the asking price, but this depends on several factors like market conditions, the market value, the home's condition, and how long the home's been on the market.
Less than 10% over: If you're in a relatively neutral market, you may want to offer just a bit more than the asking price to show your interest in a home and to make your offer more competitive. 10% over or more: If you're in a seller's market, you may need to go even higher with your offer.
Respond with a Counteroffer
Instead of outright rejecting a low offer, counter with a price closer to your listing price or one that reflects fair market value. Most buyers expect some back-and-forth, and by countering rather than dismissing their offer, you maintain control of the conversation.
The "7% rule" in real estate typically refers to a quick screening tool where an investor checks if a rental property's gross annual rent is at least 7% of its purchase price, indicating a potentially solid income investment, though it's not a substitute for detailed analysis; however, other "7 rules" exist, like those focusing on agent performance (top 7% of agents do most business) or key investment principles (due diligence, diversification, market awareness, clear strategy) for long-term success.
Typically, you can expect to close 2 to 4 weeks after the appraisal, as this period allows for final underwriting, title clearance, and preparing closing documents, though it can sometimes be faster (around 2 weeks) or slower depending on lender efficiency, market conditions, and any issues found in the appraisal. A mandatory 3-day review period for the Closing Disclosure is also required by law before you can sign.
The appraisal can take as little as 30 minutes or up to a few hours. From there, it will most likely take a few days to a week to produce an appraisal report depending on factors like the size or complexity of the home, the appraiser's workload or schedule, and when the lender ordered the appraisal.
The borrower(s) must receive the appraisal(s)/valuations(s) promptly upon completion, or at least three (3) business days prior to closing. When counting business days, Saturday is included but Sunday and Federal holidays are not.