Home Appraisal Process in Texas: What Buyers Pay For and What Happens Next
The home appraisal process is the lender’s check that the house is worth what you agreed to pay. You usually pay for it, but it protects the lender, not you. Knowing how it works, and what to do if the number comes in low, keeps a surprise from turning into a lost contract.
Here is how the home appraisal process works on a Texas purchase, from the order to the report, and what Fort Bend buyers can do when the value and the price do not match.
Who orders the appraisal, and who pays
Your lender orders it, usually through an appraisal management company or an approved panel. Federal appraisal independence rules keep you, your real estate agent and the seller from picking the appraiser or pressuring the value. That is by design. The appraiser works for the lender’s file.
The buyer usually pays the fee, either upfront when the appraisal is ordered or at closing. It shows on your Loan Estimate and later on your Closing Disclosure, as part of your cash to close. Appraisers in Texas are licensed or certified through the Texas Appraiser Licensing and Certification Board.
When the home appraisal process starts
Most buyers wait until the option period ends before the lender orders the appraisal. That way you are not paying for a report on a house you might still walk away from after inspection. Ask your lender when they plan to order it, because a late order can push your closing date. Our guide to the option period in Texas explains how that window works.
Some conventional loans qualify for an appraisal waiver, where the lender relies on data instead of a site visit. Your lender will tell you if your file qualifies. Most purchases in Fulshear, Katy and Richmond still get a full appraisal.
What the appraiser actually checks
The appraiser visits the house, measures it, photographs it, and notes its condition, layout, upgrades and any obvious problems. Then the real work happens at a desk.
- Comparable sales. The appraiser picks recent closed sales of similar homes nearby, usually in the same subdivision when there are enough of them.
- Adjustments. Each comparable is adjusted for differences such as square footage, lot size, pool, garage, condition and updates.
- Market trend. The report notes whether values in the area are rising, flat or falling.
- Loan program rules. FHA and VA appraisals also look at health and safety items. A failing roof or exposed wiring can become a required repair before closing.
Texas is a non-disclosure state, so sale prices are not public record. Appraisers rely on MLS data and their own files, which is one reason online estimates often miss here. Our post on why online home valuations miss in Texas goes deeper on that.
Appraisal, CMA and valuation: not the same number
A real estate agent’s comparative market analysis helps set a list price or an offer. The appraisal is a licensed opinion of value for a lender. The appraisal district’s value is for property taxes. Each uses a different method for a different purpose, which is why they rarely match. Our post on the difference between an appraisal and a valuation breaks the three apart.
You get a copy before closing
Federal rules require your lender to give you a copy of the appraisal promptly after it is done, and no later than three business days before closing. The CFPB announced that rule when it adopted it. Read the report. Check the square footage, bedroom and bath count, and the comparables. Errors happen, and they are easier to fix early.
If the appraisal comes in low
A low appraisal does not end your deal by itself. The lender lends on the lower of the price or the appraised value, so the gap has to be handled somehow. The usual options:
- The seller lowers the price to the appraised value.
- You pay the difference in cash, on top of your down payment.
- You and the seller split the difference.
- Your lender submits a request for reconsideration of value with better comparables or corrected facts.
- You end the contract, if your contract gives you that right.
That last point matters. The TREC Addendum Concerning Right to Terminate Due to Lender’s Appraisal lets a buyer terminate if the appraisal comes in below a set value by a set deadline. It also lets the buyer waive that right in full or in part when writing the offer, which some buyers do to compete. Decide that with your real estate agent before you sign, not after the report arrives.
How to prepare for the home appraisal process
- Ask your lender when the appraisal will be ordered and how long reports are taking.
- If you are the seller, leave a list of upgrades with dates and costs for the appraiser.
- Make sure every room, the attic access and the utilities are easy to reach.
- Keep your financing steady. The appraisal is one part of the underwriting process, not the end of it.
The home appraisal process is one of the 25 steps in our home buying checklist for Texas buyers. If you are buying in Fulshear, Katy, Richmond or elsewhere in Fort Bend and want a straight answer on what a house will appraise for, call Terra Point Realty at (713) 766-1697.
About the author
Stacy Burgin is the Broker and Founder of Terra Point Realty and a Texas Affordable Housing Specialist (TAHS). She has been licensed in Texas real estate since 2013 and has closed over 300 career real estate transactions — including 130+ home sales representing nearly $30 million in sales volume — across the greater Houston area. HAR Platinum Agent (4.89/5 across 124+ post-transaction client surveys). TREC License #630159.
Terra Point Realty, LLC — TREC Brokerage License #9002493. Information About Brokerage Services · Consumer Protection Notice · Equal Housing Opportunity.