How Home Appraisals Work in El Dorado Hills

Worried about what happens after your offer is accepted and the appraiser shows up? You are not alone. Appraisals can feel mysterious, especially when you are trying to buy or sell in a competitive market like El Dorado Hills. In this guide, you will learn how appraisals work, what local factors can move the number up or down, and how to prepare so you avoid surprises. Let’s dive in.

What an appraisal does

An appraisal is a licensed appraiser’s independent opinion of a home’s market value as of a specific date. Lenders use appraisals to help confirm they are not lending more than the home is worth. An appraisal is not a home inspection and does not guarantee condition or future performance.

Appraisers must follow the Uniform Standards of Professional Appraisal Practice (USPAP). In California, they are licensed through the California Bureau of Real Estate Appraisers. Lender and loan program rules, such as Fannie Mae, Freddie Mac, FHA, and VA, set the required forms and minimum standards for each type of loan.

For most purchases, the lender orders the appraisal, often through an Appraisal Management Company. The buyer usually pays the fee at closing. Sellers or buyers can also order a private appraisal for pricing or negotiations, but a lender will still rely on its own appraisal for the loan.

How the process works in El Dorado Hills

Here is the typical path for a residential purchase:

1. The lender orders the appraisal and assigns a local appraiser.
2. The appraiser researches public records, MLS data, and recent sales to choose comparable homes.
3. The appraiser inspects the property. Most purchase loans require an interior and exterior inspection. Some loan programs allow desktop or exterior-only reports.
4. The appraiser compares the home to recent sales and makes adjustments for differences such as size, condition, lot, and views. They reconcile the data to a final value opinion.
5. The appraiser delivers a written report to the lender, commonly the Uniform Residential Appraisal Report (URAR) for conventional loans.

Common report types

• Full interior and exterior appraisal using the URAR form. This is most common for purchases.
• Desktop appraisal that relies on data without a site visit. Used only in limited situations.
• Drive-by appraisal with exterior observations only. Less common today but still used at times.
• Appraisal waiver, when the lender accepts automated data and does not require an appraisal. Waiver eligibility depends on loan program and risk.

What the appraiser documents

• Structure: square footage, bedroom and bathroom count, age, and construction quality.
• Site: lot size, topography, views, easements, and access.
• Condition and updates: roof condition, kitchen and bath remodels, systems, and recent improvements.
• Function: floor plan flow, additions, accessory dwelling units, and whether improvements were permitted.
• Neighborhood market: comparable sales, supply and demand, and proximity to amenities or nuisances.
• Environmental and insurance issues that may affect marketability.

What drives value in El Dorado Hills

El Dorado Hills includes planned neighborhoods, hillside and ridge-top homes with views, and some acreage parcels. Those features can create value differences even within the same subdivision. Appraisers focus on comparable sales with similar characteristics, then adjust for differences.

• Views and topography. Homes with ridge-top or Folsom Lake and Sierra Foothills views often command premiums. The appraiser will look for sales with similar view quality to support adjustments.
• Lot size and usable land. Larger, usable yards tend to add value. Steep slopes or difficult access can reduce value when compared with level, usable parcels.
• Upgrades and finish. Quality kitchen and bath updates, energy-efficient systems, and well-documented improvements can support higher value. Solar ownership matters. Owned systems and leased systems are treated differently.
• Permits and compliance. Additions or conversions without permits can hurt value because they affect marketability and financing.
• Utilities. Some properties use septic and well. Others connect to municipal water and sewer. Differences may require adjustments and can trigger lender conditions.
• HOA and gated communities. Fees, amenities, and restrictions can affect value and must be considered.
• Wildfire risk and insurance. Insurance availability and cost are top-of-mind in this region. If coverage is hard to secure or premiums are high, that can influence market value and underwriting.

Timing, costs, and what to expect

For a typical purchase, appraisals often take 3 to 10 business days, depending on appraiser availability and property complexity. High-value, custom, or rural properties may need more time.

Fees vary by property and market conditions. In many California suburbs from 2022 to 2024, conventional appraisal fees ranged from a few hundred dollars to over $1,000 for complex or high-value homes. Your lender can confirm current pricing and timelines.

When the appraisal is lower than your price

A low appraisal is not the end of the road. Here are common responses:

• Reconsideration of value. You and your agent can provide better comparables or new information to the lender, who submits a formal reconsideration request to the appraiser.
• Renegotiate. Buyer and seller can adjust the price, split the gap, or agree on credits.
• Increase cash to close. The buyer can raise the down payment to satisfy the loan-to-value requirements.
• Second appraisal. Some lenders may allow a second report at the borrower’s expense, depending on program rules.
• Explore a waiver or alternative. In a few cases, underwriting may offer an appraisal waiver. Eligibility depends on the loan system’s risk evaluation.

If the appraisal comes in above contract price, it usually does not change your mortgage amount. Lenders typically base the loan on the contract price in a purchase.

Smart prep for sellers and buyers

Sellers: set the appraiser up for success

• Create a simple packet. Include recent comparable sales, a list of upgrades with dates and receipts, permit documentation for additions, and HOA details.
• Make access easy. Keep utilities on, clear attic and garage access, and make every room accessible.
• Be transparent. Disclose known issues and provide any reports you have. Surprises can trigger conservative adjustments.

Buyers: plan for the market

• Know the purpose. The appraisal protects the lender, not the buyer. Still, it helps you check the price you are paying.
• Budget for gaps. If you pay well above recent sales, set aside funds in case the appraisal does not match the contract price.
• Use your contract. Discuss safeguards with your agent, such as appraisal contingencies or structured contributions if a gap appears.

Special property notes in El Dorado Hills

• Custom and high-value homes. Unique architecture or large acreage can require broader searches for comps and more time. Some properties may need a Certified General appraiser.
• View premiums. View value is real, but it must be supported with similar sales. Anecdotes do not carry as much weight as data.
• Wildfire mitigation and insurance. Defensible space work and insurance options can affect value and loan approval. Expect questions about coverage and mitigation costs.
• Solar and energy. Appraisers consider ownership status, age, and impact on utility costs. Leased systems can complicate valuation if the lease is not assumable.
• ADUs and short-term rentals. Permitted ADUs can add value. Unpermitted units reduce it. Short-term rental potential is usually not part of a typical single-family appraisal unless the home is marketed primarily as an investment.

Work with a local advocate

A smooth appraisal rests on good prep and local knowledge. You deserve an advisor who knows how views, topography, utilities, and insurance trends play out in El Dorado Hills. If you would like a clear plan to support your price and keep your timeline on track, reach out to Tiegen Boberg for personal, white-glove service.

FAQs

Who orders and pays for the appraisal in a home purchase?

• The lender orders the appraisal, often through an AMC, and the buyer typically pays the fee as part of closing costs.

How long does a home appraisal take in El Dorado Hills and what does it cost?

• Many appraisals take 3 to 10 business days, and fees range from a few hundred dollars to over $1,000 for complex homes; ask your lender for current timelines and pricing.

What happens if my El Dorado Hills appraisal comes in low?

• You can seek a reconsideration with better comps, renegotiate the price or credits, increase cash to close, request a second appraisal if allowed, or explore program alternatives.

How do views, lot size, and wildfire risk affect appraised value in El Dorado Hills?

• View quality and usable land can raise value, while steep slopes or high insurance costs tied to wildfire risk can reduce value or affect underwriting.

Do upgrades and solar panels always increase appraised value?

• Quality, well-documented upgrades support value; owned solar is considered differently than leased systems, and leased systems may complicate valuation.

What should a seller do to prepare for the appraiser’s visit?

• Provide a comps and upgrades packet with permits and receipts, ensure full access to the home, keep utilities on, and disclose known issues to avoid surprises.

Can I challenge an appraisal or get a second one?

• You can request a reconsideration of value through your lender and, in some cases, a second appraisal; outcomes depend on the data and lender policies.

When is an appraisal waiver possible on a purchase loan?

• Waivers are granted by the lender’s automated systems in limited cases based on risk and data; your lender can confirm eligibility early in the process.