Buying or selling in Union City and worried the appraisal could throw off your timeline or budget? You’re not alone. Appraisals are one of the most misunderstood steps in a home purchase or sale, and they directly affect your loan and final price. In this guide, you’ll learn how appraisals work in Alameda County, which local factors matter in Union City, and what you can do to prepare so you stay in control. Let’s dive in.
Appraisal basics
An appraisal is a licensed appraiser’s opinion of a home’s current market value for a specific purpose, usually to support a mortgage. The lender uses it to help decide how much to lend.
It helps to separate three ideas:
- Appraisal: Market value opinion for the lender and underwriting.
- Home inspection: Condition review for your due diligence. It identifies defects but does not set value.
- Assessed value: County Assessor’s value for property taxes. It does not set market value for your lender.
Appraisers must follow professional standards and state licensing rules. In California, appraisers are licensed or certified at the state level and must follow the Uniform Standards of Professional Appraisal Practice.
Step-by-step process
1) Order and assignment
The lender orders the appraisal and assigns a licensed or certified appraiser, often through an approved panel or appraisal management company. Buyers usually pay the appraisal fee for loan underwriting. Sellers sometimes hire a separate pre‑listing appraisal, which is different from the lender’s process.
2) Scope and engagement
The appraiser confirms the purpose of the assignment and the scope of work. This includes whether the appraisal will be a full interior inspection, exterior-only, desktop, or a hybrid product, depending on the loan program and lender requirements.
3) Inspection and data collection
For a full appraisal, the appraiser visits the property to verify size, condition, amenities, and any visible health or safety issues. They take photos inside and out, note upgrades and deferred maintenance, and look for signs that work was done with or without permits.
4) Market research and comps
Next, the appraiser studies recent comparable sales, plus active and pending listings. In Union City, comps may come from nearby areas that are truly comparable, such as parts of Hayward, Fremont, or Newark when appropriate. The goal is to match location, property type, size, age, and condition as closely as possible.
5) Adjustments and valuation
The appraiser makes adjustments to the comparable sales to account for differences like square footage, bedroom or bathroom count, lot size, and condition. For most single-family homes, the sales comparison approach carries the most weight. The appraiser reconciles all approaches to arrive at the final opinion of value.
6) Report delivery and review
The appraiser delivers a written report to the lender, often on the standard form for single-family homes. The lender’s underwriter reviews the report and may ask for clarifications, additional comps, or repairs if the loan program requires them.
Lender rules and appraisal types
Loan programs and standards
- Conventional loans: Appraisers follow the selling guides of major agencies. The sales comparison approach is primary.
- FHA loans: Appraisers apply minimum property requirements that focus on habitability and safety. Repairs may be required before funding.
- VA loans: Appraisers use VA minimum property requirements. Health, safety, and marketability issues must be addressed.
- Jumbo loans: Lenders often expect more detailed local commentary and may require more robust comparable sales.
Some loans may allow an appraisal waiver or use an automated valuation model. If a waiver is not granted, a full appraisal is required.
Appraisal formats you might see
- Full interior and exterior appraisal: Most common for purchases.
- Exterior-only appraisal: Drive‑by, used in lower-risk situations.
- Desktop or hybrid: Uses records and MLS data, sometimes with third‑party interior details. Whether this is allowed depends on the lender and program.
Timing to expect
Turnaround times vary with market activity and property complexity. A typical range is about one to a few weeks. Plan your contract timelines with flexibility since underwriting may request revisions.
Offers and loans
The appraisal influences your loan-to-value ratio because the lender bases the loan on the appraised value. If the appraisal is below the contract price, you have an appraisal gap. Your options include:
- Renegotiate the price with the seller.
- Bring additional cash to cover the gap.
- Ask for a seller credit if allowed by your loan program.
- Submit recent, credible comparable sales for a reconsideration of value through the lender.
- Request a second appraisal if your lender allows it.
Underwriters can also require repairs or more documentation, especially for FHA and VA loans. Your agent can help you understand the timelines and what to prioritize if issues come up.
Union City factors that shape value
Location and access
Union City benefits from access to I‑880, CA‑92, and nearby BART, with commuting options toward Silicon Valley and the broader East Bay. Appraisers consider proximity to transit, major employers, retail, and parks when evaluating marketability. These access points influence buyer demand and comparable selection.
Permits and additions
Permit status can meaningfully affect valuation. Unpermitted conversions or additions, like a garage turned into living space without permits, may not be counted toward the home’s living area. Provide the appraiser with your permit records for remodels, ADUs, or system upgrades. If you are unsure of status, check with the City of Union City Building Division or Alameda County records.
Environmental and zoning considerations
Appraisers note issues that affect marketability, such as whether a property sits in a flood zone. Seismic risk is a regional reality, and appraisers may comment on retrofits for certain property types. Zoning, lot size, and expansion potential also matter, especially if you are considering future improvements like an ADU.
Condos and planned developments
For condos and townhomes, the health of the HOA is relevant. Appraisers often review budgets, reserves, insurance, and any known special assessments or litigation. Occupancy and comparable sales within the project or similar nearby projects help determine value.
Prepare like a pro
For sellers
- Consider a pre‑listing appraisal if pricing is unclear. It can surface issues early.
- Gather documentation: permits for additions, receipts for roof, HVAC, electrical, or plumbing, and any recent inspections or repairs.
- Create a one‑page features list: note dates of upgrades and permit details.
- Make the home easy to inspect: good lighting, clear pathways, and access to all areas.
- Address obvious safety or habitability issues in advance, especially for FHA or VA buyers.
For buyers
- Know your appraisal contingency: understand timelines and your remedies if value comes in low.
- If you plan to bid above list, decide in advance how you will handle a potential gap.
- Be flexible on access so the appraiser can visit promptly. Delays can slow underwriting.
- Share credible comps or upgrade details with your agent. While the appraiser is independent, strong data supports your position in any reconsideration.
If value comes in low
- Renegotiate: ask for a price reduction or credit.
- Bridge the gap: bring extra cash if you are committed to the home and budget allows.
- Reconsideration of value: submit better comps and clear documentation through the lender.
- Second appraisal: request if lender policies allow and there is a strong basis.
Quick packet for the appraiser
- Permit records for additions or remodels
- Receipts and warranties for major systems
- List of recent upgrades with dates and materials
- HOA documents and budgets for condos
- A list of recent comparable sales as supporting data
What appraisers check
During the site visit, appraisers verify gross living area, room counts, and overall condition. They look at the roof, foundation, major systems, finishes, and any deferred maintenance. They also check for safety or habitability concerns that could affect loan eligibility under your program.
Work with a local pro
A clear appraisal plan keeps your deal on track. Whether you are preparing a Union City listing or crafting a competitive offer, local comps, permit records, and program-specific requirements all matter. If you want help pricing strategically, assembling a strong appraisal packet, or navigating a low-value outcome, reach out to a trusted local advisor.
Have questions about your specific situation in Union City or the wider East Bay? Connect with Stacey Davis to review your goals and map out next steps.
FAQs
Who pays the appraisal fee in Alameda County home purchases?
- In most mortgage transactions, the borrower pays the appraisal fee. Sellers sometimes order a separate pre‑listing appraisal at their own expense.
Can I push for a higher value if my Union City appraisal is low?
- You cannot direct the appraiser, but you can ask your lender for a reconsideration of value by providing stronger comparable sales and clear documentation of upgrades and permits.
How does a low appraisal affect my loan in Union City?
- Your loan is based on the appraised value. If value is below the contract price, you can renegotiate, bring additional cash, seek a seller credit, or request a reconsideration of value.
Do assessed values from Alameda County influence appraisals?
- No. Assessed values are for property taxes. Appraisers rely on current market sales, although they may reference assessor records for property characteristics.
Are appraisals required if I buy with cash in Union City?
- Not by a lender. Many cash buyers still order an appraisal for due diligence, estate planning, or tax reasons.
What do appraisers look for during the inspection in Union City?
- They verify size and layout, condition of major systems, quality of finishes, safety issues, and any factors that affect marketability. Permit status for additions and conversions is important.
