“Preparation is key. Providing appraisers with correct property details, renovation histories, and clarification of public record discrepancies is not only allowed, but also encouraged.“
As we move deeper into 2026, one clear trend is shaping residential real estate transactions across the Lowcountry: financing is back in the driver’s seat. More than 50 percent of real estate deals are now financed, a shift that began in earnest last year and is expected to grow as interest rates become more attractive. With that shift comes renewed importance of one often misunderstood component of the transaction – the appraisal.
An appraisal is a required step whenever a buyer uses a mortgage. While it may feel like a routine checkbox, the appraisal plays a critical role in determining whether a transaction moves forward smoothly or encounters delays and renegotiations. Understanding how appraisals work, and what they are designed to do, is essential for buyers, sellers, and agents alike.
A common misconception is who the appraiser works for. Although the buyer typically pays for the appraisal as part of their closing costs, the appraiser’s client is the lender not the buyer or the seller. The appraisal is ordered by the lender through a third-party system designed to maintain independence and objectivity. This separation exists to protect the integrity of the lending process and ensure the valuation is unbiased.
The primary purpose of the appraisal is to help the lender assess risk. It confirms that the property provides adequate collateral for the loan and supports the loan’s inclusion in a broader financial package that may ultimately be sold on the secondary market. While buyers and sellers often view appraisals as negotiation tools, their function is rooted in risk management and accuracy.
Appraisers frequently contact real estate agents during the process to validate data. While appraisers have access to MLS information, they often need additional context that is not documented such as unusual conditions, multiple-offer situations, or seller motivation. Accurate, factual input from agents helps ensure a more reliable appraisal.
When an appraisal comes in below the contract price, it does not automatically mean the deal is over. All parties should review the report carefully for errors or omissions. If issues are identified, they must be submitted through the lender for consideration, potentially leading to a reconsideration of value or a formal appraisal review. Direct contact with the appraiser outside this process is not permitted.
Preparation is key. Providing appraisers with correct property details, renovation histories, and clarification of public record discrepancies is not only allowed, but also encouraged. What is not allowed is attempting to influence value. The goal is accuracy, not advocacy.
As financed transactions continue to dominate the 2026 market, understanding the appraisal process is no longer optional. Accurate data, proper preparation, and realistic expectations help ensure a fair, stable market, one where values reflect reality not emotion. In the end, a well-supported appraisal benefits everyone involved.