Who orders the appraisal?
Who REALLY orders the appraisal? Hint: it's not always the bank.
Quick answer: who orders the appraisal?
The lender almost always orders the appraisal when a mortgage or refinance is involved. But buyers, sellers and homeowners can also order independent or pre-listing appraisals. Know who orders an appraisal and why — it changes timing, access to the report, cost and negotiating power.
Why lenders usually order the appraisal
Lenders order appraisals to protect their investment. The appraisal confirms the market value and supports loan-to-value (LTV) calculations used in underwriting. Most lenders assign the task to an appraisal management company (AMC), which picks a licensed appraiser. The appraisal report is delivered to the lender, not automatically to the buyer or seller.
Keywords: lender ordered appraisal, mortgage appraisal, appraisal management company, loan-to-value
Other parties who order appraisals
- Buyer-ordered appraisal: Buyers sometimes pay for a private appraisal for peace of mind, to verify value during negotiation, or when the lender’s appraisal is delayed. A buyer-ordered appraisal can be used for negotiation but may not satisfy lender requirements.
- Seller (pre-listing) appraisal: Sellers order appraisals to price aggressively and avoid surprises at offer time. A pre-listing appraisal gives pricing authority and shortens the sales timeline.
- Refinance/home equity: Homeowners refinance or borrow a home equity line; the new lender orders an appraisal to confirm current value.
- Legal and tax contexts: Courts, estates or tax appeals may trigger court-ordered or independent appraisals.
Keywords: pre-listing appraisal, buyer appraisal, refinance appraisal, home equity appraisal
Appraisal vs home inspection — short, crucial difference
- Appraisal = value. Done for lending and market value assessment.
- Inspection = condition. Done to reveal defects and maintenance needs.
Buyers need both. Inspectors look for problems; appraisers assess comparable sales, condition, and market trends.
Keywords: home inspection vs appraisal, property inspection, certified appraiser
How the process affects you
- Timing: Lender-ordered appraisals happen during underwriting and can delay closing if value comes in low.
- Access: Lenders receive the original report. Buyers usually get a copy; rules vary by jurisdiction.
- Cost: Typically paid by the borrower, but the payer can be buyer, seller or homeowner depending on context.
- Low appraisal? Options include appraisal rebuttal, requesting a second appraisal, supplying comps, or renegotiating price.
Keywords: low appraisal options, appraisal contingency, appraisal appeal
Practical advice from a local real estate expert
I’m Tony Sousa. I help buyers and sellers understand when to order an independent appraisal and how to use it to gain leverage. If your mortgage lender ordered the appraisal, expect it to be handled by an AMC and delivered to underwriters. If you want certainty before listing, order a pre-listing appraisal. If a low appraisal threatens your deal, call me — I’ll show immediate next steps to protect your transaction.
Contact: Tony Sousa — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
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Want a straight answer or help with a live appraisal? Reach out now. I’ll cut through the noise and get you a clear, actionable plan.
