You have likely heard Realtors, Homeowners, Buyers, and Sellers say: “My Real Estate Appraisal came in LOW.”
As an Appraiser, that statement does not sit particularly well—and for good reason. It implies that the value opinion was lower than it should have been, or lower than true market value. In most transactions, what this phrase really means is that the appraised value is below the contract sales price. That does not automatically mean the appraisal is wrong.
Appraisers do not create value; we analyze and report what the market dictates—nothing more, nothing less.
A value that “comes in low” is often a matter of perception rather than reality. Market value is determined by analyzing recent sales of similar properties—those a typical buyer would consider a reasonable substitute for the subject property if it were no longer available. In appraisal terminology, this is known as the Principle of Substitution.
Perhaps a more accurate statement would be: “The sales price was high.”
Of course, that phrasing is far less palatable for parties to a transaction who stand to gain financially at closing.
It is important to understand that Appraisers are not tasked with “hitting” the contract price. An Appraiser’s opinion of value must be based solely on what buyers in the current market are willing to pay for the property being appraised—not on hopes, expectations, or negotiated prices.
As we move into 2026, we are clearly seeing a cooling in the real estate market. Increased inventory, longer days on market and greater buyer selection mean purchasers have more time and leverage to make informed decisions. More than in recent years, pricing your home competitively is critical.
At Pendley & Pendley Appraisers, we help homeowners price their properties realistically so they sell within a reasonable timeframe. Our appraisals reflect current market conditions in your specific area, providing you with reliable, data-driven insight before you list.
One of the best investments you can make in 2026 is a Pre-Listing Appraisal. Knowing your home’s true market value before placing it on the market can save time, reduce frustration, and help ensure a smoother transaction from start to finish.