If you’re planning to sell your property, it’s completely natural to feel a bit uncertain about the appraisal process. A few small oversights can lower your home’s value and, in some cases, even jeopardize the sale. When the buyer’s loan depends on a satisfactory appraisal, a lower-than-expected valuation can cause delays, force renegotiations, or even derail the deal.
That’s why it’s so important to understand what factors influence an appraisal. Many homeowners unknowingly make mistakes that hurt their home’s value. Here’s what you should know to help your appraisal come in as strong as possible.
What Is a Home Appraisal?
A home appraisal is a professional, unbiased assessment of your property’s fair market value conducted by a licensed appraiser. Lenders require this evaluation before approving a mortgage to ensure that the home’s worth aligns with the loan amount. Appraisals are also used for refinancing, home equity loans, and determining a home’s market value before listing it for sale.
In short, an appraisal is a crucial step in both buying and selling real estate. It safeguards everyone involved — sellers, buyers, and lenders. For sellers, it confirms that the accepted offer reflects market value; for buyers, it ensures they’re not paying too much. Because the appraisal affects loan approval and financing amounts, understanding what impacts the outcome is essential.
Home Value Estimate vs. Appraisal
Online home value tools can offer a quick idea of your property’s worth using public records and algorithms. While helpful for general reference, these automated estimates can’t match the accuracy of a professional appraisal.
An appraisal involves a certified expert who visits the home, inspects it in person, and analyzes comparable sales to determine true market value. If you’re selling or refinancing, this professional assessment provides the most reliable number. Still, checking your estimated value beforehand can help you spot potential issues or decide on updates before the appraiser arrives.
What Do Appraisers Consider?
Appraisers review multiple elements to determine a home’s value, including:
-
Location and neighborhood trends
-
Lot size and overall condition
-
Comparable recent sales nearby
-
Square footage, layout, and room count
-
Interior features such as flooring, finishes, and fixtures
-
Major systems like HVAC, plumbing, and electrical
-
Exterior condition — roof, foundation, siding, and curb appeal
They also take into account zoning, available utilities, and flood zones. A well-maintained, updated home typically earns a higher valuation because it signals lower future costs and good overall care.
The Appraisal Process: What Happens
When a lender requests an appraisal, an independent appraiser — usually through a third-party company — researches comparable properties, visits your home, and conducts a full inspection.
During the visit, the appraiser takes photos, measurements, and detailed notes about the home’s features and condition. Afterward, they compile a formal report that includes their analysis and the final appraised value.
If the value comes in lower than expected, your real estate agent can help you file a reconsideration request if there are errors or missed comparable sales. Preparing your home before the visit can go a long way toward achieving a higher result.
Common Mistakes That Can Lower an Appraisal
1️⃣ Visible Damage or Lack of Maintenance
Appraisers look closely at a home’s condition. Issues like roof leaks, cracks, stains, or outdated systems can suggest neglect and reduce value. Even small problems — chipped paint or broken tiles — leave a negative impression. Take time to fix minor issues and tidy up before the visit.
2️⃣ Limited Access to Parts of the Home
Appraisers need full access to every area. If rooms, attics, or basements are locked or blocked, they may make unfavorable assumptions. Ensure all areas are clean, open, and well-lit.
3️⃣ Neglected Exterior or Landscaping
First impressions count. Overgrown grass, peeling paint, or damaged gutters can make a property appear poorly maintained. Simple curb appeal improvements — mowing, trimming, repainting, or cleaning — can make a strong difference.
4️⃣ Unpermitted Renovations
Upgrades made without proper permits may not be included in the appraised value. Always ensure additions or major remodels are documented and legally permitted.
5️⃣ Outdated or Nonfunctional Systems
Aging or faulty plumbing, wiring, or HVAC systems can negatively affect the home’s marketability and value. Keep these systems in good condition with regular maintenance or upgrades.
6️⃣ Missing Proof of Improvements
If you’ve made significant upgrades, provide evidence — receipts, warranties, and permits. Without documentation, the appraiser may overlook their impact on value.
Final Thoughts
Knowing what can impact your home’s appraisal helps you protect its value and avoid surprises. By handling maintenance, keeping records organized, and presenting your home in its best light, you can help ensure a smoother process and a stronger valuation.
If you’re planning to sell or refinance, connect with a trusted real estate professional who can guide you through each step and help you make the most of your home’s value.