How Home Appraisals Work in Palm Beach County: Cost, Timing and Reading the Report

Knowing how home appraisals work can save a Palm Beach County deal. If a buyer uses a mortgage, the lender almost always wants an appraisal. It is an independent opinion of the home's market value. The lender uses it to make sure the loan is not larger than the home is worth. Sellers feel the result too, since a low value can force a price cut or a renegotiation. This guide explains who orders the appraisal, how the appraiser reaches a value, how long the report stays valid, what the new report format looks like, and how both sides can prepare.

Key takeaways

• The buyer's lender orders the appraisal, and federal rules keep agents and sellers from steering the appraiser.
• Most appraisals rely on recent comparable sales. The appraiser adjusts for differences in size, condition, features and location.
• Fannie Mae requires the appraisal to be dated within 12 months of the loan. If it is more than 4 months old, the appraiser must update it.
• FHA appraisals are valid for 180 days, and an update can extend them to one year.
• A redesigned appraisal report, known as UAD 3.6, becomes mandatory for Fannie Mae and Freddie Mac loans on Nov. 2, 2026.

How home appraisals work: who orders the appraisal

The buyer's lender orders the appraisal, and the buyer usually pays for it. Many lenders place orders through an appraisal management company, which assigns a licensed or certified appraiser. In Florida, appraisers are licensed by the state under Chapter 475 of the Florida Statutes.

Federal law protects the appraiser's independence. Under Regulation Z, section 1026.42, no one in the deal may pressure an appraiser to hit a number. That includes the lender, the agents and the seller. You can share facts with the appraiser, but you cannot ask for a certain value.

Cash buyers often skip the appraisal. Some buy one anyway for peace of mind. Also, some loans qualify for an appraisal waiver, where the lender relies on data instead of a site visit.

How home appraisals work during the site visit

For a standard appraisal, the appraiser visits the home. How long it lasts depends on the size and layout of the home. During the visit, the appraiser will:

• Measure the living area and sketch the floor plan.
• Note the number of bedrooms and bathrooms.
• Check the condition of the kitchen, baths, flooring, roof and major systems.
• Take photos inside and out.
• Note features buyers pay for here, such as a pool, impact windows, a water view or a dock.
• Look at the street, the neighborhood and any outside factors that affect value.

The appraiser is not a home inspector. They will note obvious problems, such as a roof leak or missing handrails, but they do not test systems the way an inspector does.

How home appraisals work out a value

Appraisers use three main methods. For most homes, the first one carries the most weight.

• Sales comparison approach. The appraiser picks recent sales of similar homes nearby, called comps. Then they adjust each comp's price up or down for differences, such as an extra bedroom, a newer roof or a smaller lot.
• Cost approach. This estimates what it would cost to rebuild the home, minus wear, plus the land value. It matters more for new or unusual homes.
• Income approach. This looks at the rent a property could earn. It is used mainly for rental and investment property.

In Palm Beach County, finding good comps can be hard for unique homes. A waterfront home, a large lot in The Acreage or a condo in a building with few recent sales may have thin data. In those cases, the appraiser may use older sales or comps farther away, and adjust more.

Our post on factors that hurt a home appraisal lists what tends to drag value down.

Timing and how long an appraisal is valid

Timing varies with the season, the home and the local workload. Many contracts give the buyer a set number of days to get the appraisal back. So the lender should order it soon after the contract is signed.

Validity depends on the loan type. Under the Fannie Mae Selling Guide, the home must be appraised within the 12 months before the loan closes. If the appraisal is more than 4 months old at closing, the appraiser must complete an update. If the update shows the value dropped, a new appraisal is needed.

FHA rules differ. According to HUD, an FHA appraisal is valid for 180 days from its effective date. An update can extend it to one year from that date.

What an appraisal costs

Fees vary by home type, size and loan program. Larger, waterfront and multi-unit homes cost more to appraise. For local price ranges, see our guide to home appraisal cost in Palm Beach County.

How home appraisals work on the new report form

The report itself is changing. Fannie Mae and Freddie Mac have redesigned the Uniform Residential Appraisal Report as part of UAD 3.6. Broad use began on Jan. 26, 2026. Starting Nov. 2, 2026, according to Fannie Mae, all appraisals for loans sold to either agency must use it.

The new report replaces the old numbered forms, such as the 1004 for houses and the 1073 for condos. Instead, one dynamic report adjusts its sections to the type of property. It also relies more on structured data and less on free-form comments. For buyers and sellers, the basics stay the same: a value, the comps and the reasons behind the adjustments.

How home appraisals work for Florida condos

Condos add a second layer. The appraiser still values the unit by comparing it with recent sales, often in the same building or complex. However, the lender also reviews the condo project itself before it will make the loan.

That project review looks at the association's budget, reserves, insurance and any open lawsuits. In Florida, it also looks closely at building safety. After the state's condo safety laws, many older buildings face milestone inspections and structural reserve studies. If an association has large repairs ahead or thin reserves, some lenders may not lend in that building at all.

For a seller, this means the appraisal is only part of the story. A unit can appraise at the contract price, yet the loan can still stall if the building fails the lender's review. So condo sellers should gather the association's budget, the latest reserve study and any inspection reports early. Buyers should ask their lender about the building before they write an offer.

How to read the appraisal report

You have a right to see it. Under Regulation B, section 1002.14, the lender must give the buyer a copy promptly after it is done, or three business days before closing, whichever comes first. Sellers usually see it only if the buyer or lender shares it.

When you get the report, check these parts first:

1. Subject facts. Confirm square footage, bedrooms, bathrooms, lot size and year built. Errors here can move the value.
2. Comparable sales. Look at how close each comp is, how recent the sale was and whether it is truly similar.
3. Adjustments. See how much the appraiser added or subtracted for each difference.
4. Condition and quality ratings. These scores shape the adjustments, so make sure they match the home.
5. Final value and conditions. Note whether the value is "as is" or "subject to" repairs or completion.

How to prepare so home appraisals work in your favor

Sellers can help the appraiser see the full picture. Prepare a one-page list of upgrades with dates and costs, such as a new roof, impact windows, an AC system or a kitchen remodel. Add permits where you have them. Your agent can also send the appraiser a list of recent sales they think are relevant. That is allowed, as long as no one asks for a set value.

Before the visit, make sure every room, the attic hatch and the electrical panel are easy to reach. Fix small items, such as broken outlets or missing smoke detectors. A clean, tidy home will not raise the value directly, but it helps the appraiser rate condition fairly.

Buyers should know their contract terms. Check whether you have an appraisal contingency and how many days it gives you. If the value comes in low, see our page on what to do after a low appraisal. You can also ask the lender for a reconsideration of value if you find errors or better comps.

Frequently asked questions

Who pays for the appraisal?

The buyer usually pays, either upfront or at closing. In some deals the parties negotiate a different split.

Can a seller attend the appraisal?

Yes, though many sellers let their agent meet the appraiser instead. You can answer questions and hand over an upgrade list, but you cannot ask for a certain value.

How long does an appraisal stay valid?

For Fannie Mae loans, up to 12 months, with an update needed after 4 months. For FHA loans, 180 days, which an update can extend to one year.

What happens if the appraisal is lower than the price?

The buyer, seller or both may renegotiate. The buyer can also bring more cash, challenge the report with a reconsideration of value, or cancel if the contract allows.

Is an appraisal the same as a home inspection?

No. An appraisal estimates value for the lender. An inspection checks the condition of the home's systems for the buyer.

Sources

• Fannie Mae Selling Guide, B4-1.2-04 appraisal age and use
• HUD, FHA revised appraisal validity period
• Fannie Mae, Uniform Appraisal Dataset
• Freddie Mac, UAD 3.6 FAQ
• CFPB, Regulation Z section 1026.42 valuation independence
• CFPB, Regulation B section 1002.14 copies of appraisals

This article is general information, not legal or financial advice. Lending rules change, so confirm the details with your lender and a licensed professional.

Selling soon and wondering what an appraiser will say? Get a free Pure Equity home value report built on recent local sales, so you can price with the appraisal in mind. Buying instead? Our agents will help you plan for the appraisal before you write an offer.