From the buyer's perspective, appraisals verify they aren't overpaying for a property. Lenders won't approve financing that exceeds appraised value, potentially requiring buyers to renegotiate or contribute additional cash. Appraisal findings can also inform future improvement planning and investment decisions.
For sellers, preparation makes a difference. Clean, well-maintained properties present better during appraisal evaluations. Some sellers obtain pre-listing appraisals to establish appropriate asking prices, though most rely on the buyer's lender-ordered appraisal during the transaction process.