When you’re buying or selling a home in Texas, there’s one step that can catch people off guard: the home appraisal. It might feel like just another box to check in the transaction, but in reality, it plays a huge role in whether a deal moves forward smoothly—or hits a wall.
Whether you’re a buyer hoping your dream home appraises for what you’re paying, or a seller crossing your fingers for top value, understanding the home appraisal process in Texas is crucial.
This guide breaks down what an appraisal actually is, how it works, who orders it, and how it affects your deal. We’ll also cover tips to avoid appraisal delays and what to do if the number comes in too low.
What Is a Home Appraisal?
A home appraisal is an unbiased, professional estimate of a property’s market value. It’s typically ordered by the lender during a real estate transaction to make sure the loan amount isn’t higher than what the home is worth.
Think of it this way: If the buyer defaults on the loan, the lender wants to be sure the home can be resold for at least what they lent out.
In most Texas home sales, especially where a mortgage is involved, the appraisal is a non-negotiable part of the process.
Why Appraisals Matter in Texas Real Estate
Texas is known for a fast-moving and sometimes unpredictable real estate market. In hot markets like Austin, Dallas, or San Antonio, prices can rise quickly—sometimes faster than comparable sales can catch up.
That’s why the home appraisal process in Texas is so critical. It helps keep deals grounded in current market data.
If you’re a buyer:
- You want to make sure you’re not overpaying
- Your lender won’t approve a loan above the appraised value
- A low appraisal could mean you need to renegotiate or pay the difference
If you’re a seller:
- A high appraisal supports your asking price
- A low appraisal could force a price cut or a failed deal
- Prepping for appraisal is part of your strategy (more on that later)
Want guidance on listing your home for an appraisal-safe price? Work with a listing agent who knows how to price strategically in your market.
Who Orders the Appraisal?
In most cases, the buyer’s mortgage lender orders the appraisal. Even though the buyer pays the fee (usually between $400–$600 in Texas), the appraiser works for the lender, not the buyer or seller.
Appraisers must be licensed and certified by the Texas Appraiser Licensing and Certification Board (TALCB), and they’re expected to deliver an impartial, fact-based report based on:
- Condition of the home
- Size and layout
- Location and neighborhood
- Recent comparable sales
- Market trends
Neither the buyer, seller, nor agents are allowed to influence the appraiser’s opinion. It’s meant to be a fair, arms-length assessment.
What Does the Appraiser Look For?
The appraiser will visit the property in person (or virtually, in some refinance cases) to evaluate its current condition and features. This includes:
- Square footage and layout
- Number of bedrooms and bathrooms
- Lot size and landscaping
- Interior upgrades or remodels
- Condition of HVAC, roof, foundation, and appliances
- Safety or code issues
- Overall curb appeal and marketability
They’ll also compare the home to at least 3–6 recently sold properties (known as “comps”) within the area, ideally similar in size, age, and style.
How Long Does the Home Appraisal Process Take in Texas?
The timeline for the home appraisal process in Texas is usually around 7 to 10 business days, but this can vary depending on:
- The appraiser’s availability (rural areas may have fewer appraisers)
- How fast comps can be reviewed
- How busy the local market is
Your lender and agent will typically keep you updated on the status. For peace of mind, build in some buffer time before closing in case the appraisal report is delayed.
What Happens After the Appraisal?
Once the appraiser submits their report, the lender reviews it. Then, one of three things usually happens:
1. The Appraisal Meets or Exceeds the Purchase Price
This is the best-case scenario. The lender approves the loan, and the deal moves forward to closing.
2. The Appraisal Comes in Low
This is where things can get tricky. If the appraisal is lower than the purchase price, the lender won’t finance the full agreed-upon amount.
Here are your options:
- Buyer pays the difference out of pocket
- Seller lowers the price to match the appraisal
- Both sides renegotiate and meet in the middle
- Challenge the appraisal with additional comps or a second opinion
- Cancel the contract (if the agreement has an appraisal contingency)
Tip: If you’re a buyer, make sure you have an appraisal contingency in your offer. A buyer’s agent can help you structure the offer to protect your earnest money.
3. The Appraisal Includes Required Repairs
Sometimes an appraisal includes required repairs—especially if the buyer is using a VA, FHA, or USDA loan. These programs have minimum property standards, and certain issues (like peeling paint, roof damage, or missing handrails) must be fixed before the loan can close.
How to Prepare for an Appraisal (for Sellers)
If you’re the seller, there are things you can do to maximize your home’s appraised value. Even small efforts can make a difference in borderline cases.
Quick tips for sellers:
- Clean and declutter – A tidy, well-kept home feels more valuable
- Highlight upgrades – Leave a list of renovations and the costs
- Handle minor repairs – Fix leaky faucets, chipped paint, loose railings
- Boost curb appeal – Mow the lawn, trim bushes, sweep the entry
- Be present—or don’t – You can be home for the appraisal, but give the appraiser space to work
Your listing agent can also provide the appraiser with comps or info on the home’s features that may not be obvious at a glance. Just keep in mind, the appraiser has the final say.
Common Myths About Home Appraisals
Let’s bust a few misconceptions that float around the Texas real estate world:
“An appraisal is the same as a home inspection.”
Not true. Appraisals assess value, while inspections assess condition and safety. You need both.
“The appraiser will look in every drawer and closet.”
Nope. They’re not there to snoop—they’re evaluating layout, size, and condition, not your sock drawer.
“Appraisals are always accurate.”
Appraisals are educated opinions. They’re based on data, but two appraisers could come to slightly different numbers.
What If You Disagree With the Appraisal?
If you believe the appraisal was flawed—maybe the comps were outdated, or important upgrades were overlooked—you can request a reconsideration of value.
Work with your agent to:
- Gather better comps
- Provide documentation of upgrades or repairs
- Highlight errors in square footage or room counts
Lenders won’t always agree to adjust the appraisal, but in some cases, it can tip the scales. If not, you can request a second appraisal (at your own cost) or renegotiate.
Final Thoughts: Mastering the Home Appraisal Process in Texas
The home appraisal process in Texas isn’t something to fear—but it is something to understand. Whether you’re buying or selling, the appraisal is a key turning point in your deal, and being prepared can help you avoid delays, surprises, and tough negotiations.
If you’re listing your home, working with an experienced listing agent ensures your home is priced smart and positioned to appraise well. And if you’re buying, a knowledgeable buyer’s agent can help you navigate the numbers and protect your interests every step of the way.
Have questions about how appraisals could affect your next move? We’re here to help—real talk, no pressure.