What to Expect During the Home Appraisal Process in California

By The Doran Team

In California real estate, the home appraisal process is one of the most important—and often misunderstood—steps in a transaction. Whether you’re buying your first home, selling a longtime residence, or refinancing an existing property, the appraisal plays a critical role in determining value and keeping a deal on track.

As a Menlo Park real estate team working daily across the Peninsula and greater Bay Area, we guide our clients through appraisals with clarity and strategy. Understanding what to expect, how appraisers think, and how to prepare can make a meaningful difference in both outcomes and peace of mind. Here’s what California buyers and sellers should know.

A home appraisal is an independent, professional opinion of a property’s market value. In California, appraisals are most commonly ordered by lenders to ensure the home is worth the amount being financed. While buyers and sellers may feel the appraisal is just another box to check, it often determines whether a transaction moves forward smoothly—or needs adjustment.

If the appraised value meets or exceeds the purchase price, the loan typically proceeds as planned. If it comes in lower, renegotiation, additional cash, or even cancellation may be required. That’s why preparation and expert guidance are so important.

In most purchase transactions, the buyer’s lender orders the appraisal after the contract is ratified. Federal regulations require appraisers to be independent and impartial, meaning neither the buyer, seller, nor real estate agents can select the appraiser directly.

For refinances, the lender again orders the appraisal, often with less visibility to the homeowner until the inspection is scheduled. Regardless of the scenario, the appraiser’s role is to provide an unbiased assessment based on data, not emotion or market hype.

During a California home appraisal, the appraiser evaluates both the property itself and comparable sales, often referred to as “comps.” The process typically includes:

The appraiser will visit the property to assess its overall condition, layout, square footage, and functionality. They’ll note the number of bedrooms and bathrooms, quality of finishes, natural light, and any upgrades or renovations.

Exterior elements matter as well. Curb appeal, lot size, landscaping, driveway, roof condition, and outdoor living spaces all factor into value—especially in California markets where indoor-outdoor living is highly prized.

In areas like Menlo Park, Palo Alto, and surrounding Peninsula communities, location is a major driver of value. Appraisers consider school districts, walkability, proximity to amenities, and neighborhood desirability.

Homes near downtown corridors, transportation, parks, and employment centers often command stronger valuations. This is where local expertise becomes invaluable in setting realistic expectations.

Appraisers rely heavily on recent comparable sales—typically homes sold within the last three to six months that are similar in size, condition, and location. In competitive California markets, rapid price changes can sometimes make comps feel outdated, but appraisers must work within established guidelines.

Adjustments are made for differences such as upgrades, lot size, views, or additional living space. The final value is derived from this data-driven comparison.

In California, the appraisal process usually takes one to two weeks from order to final report, though timelines can vary based on market activity and appraiser availability. High-demand periods may extend this window slightly, especially in the spring and summer selling seasons.

Once completed, the appraisal report is sent to the lender, who then shares it with the buyer. Sellers typically receive the results through escrow or their agent.

California’s diverse housing stock and fast-moving markets can present unique appraisal challenges.

In competitive areas, multiple-offer situations may push prices beyond recent comparable sales. While buyers may be willing to pay a premium, appraisers must justify value using closed transactions—not list prices or emotional demand.

Unique or custom homes can also be harder to appraise, particularly in luxury markets where no two properties are alike. In these cases, experience and thoughtful data selection become critical.

At The Doran Team, we proactively address these issues by preparing detailed property information and supporting data before the appraisal occurs.

Sellers play a meaningful role in helping the appraisal reflect true market value. We recommend ensuring the home is clean, accessible, and well-presented. Minor repairs, fresh paint, and completed maintenance can positively influence an appraiser’s perception of condition.

Providing a list of recent upgrades—such as new roofs, HVAC systems, kitchens, or bathrooms—helps ensure improvements are fully considered. While appraisers won’t value décor, they do value quality and longevity.

For buyers, it’s important to understand that the appraisal protects you as much as the lender. It ensures you’re not significantly overpaying based on current market data.

In strong California markets, buyers sometimes choose to include appraisal gap strategies in their offers. This means being prepared, if necessary, to bridge the difference between appraised value and purchase price with additional funds.

We help our buyers evaluate these decisions carefully, balancing competitiveness with financial comfort.

A low appraisal doesn’t automatically end a deal. Common options include renegotiating the price, requesting a reconsideration with additional comps, increasing the down payment, or restructuring loan terms.

In some cases, walking away may be the right choice—but that decision should be informed, not reactive. Clear communication and strategic negotiation often lead to workable solutions.

Appraisers may review the contract price, but value is ultimately based on comparable sales and objective data.

Homes don’t “pass” or “fail,” but significant condition issues can affect value or loan approval.

Not typically, though many cash buyers still order appraisals for valuation insight.

Sellers don’t need to attend, but the home should be accessible and prepared.

No. Appraisals focus on value; inspections focus on condition and safety.

Whether you’re preparing to sell, making a competitive offer, or navigating a refinance, understanding the appraisal process is essential. At The Doran Team, we help our clients approach appraisals with confidence, preparation, and expert local insight.

Visit https://drewdoran.com/ to learn more, or connect with The Doran Team for personalized guidance on your next Menlo Park or Peninsula real estate move.