When you’re buying or selling a home, one professional can make or break the deal: the home appraiser. Whether you’re applying for a mortgage, refinancing, or just curious about your home’s worth, the appraisal is a crucial step and one that’s often misunderstood.
Let’s break down what home appraisers really look for, how their assessment impacts your property value, and what you can do to improve it.
What Is the Role of a Home Appraiser?
A home appraiser is a licensed professional who provides an unbiased estimate of a property’s value. This valuation is primarily used by mortgage lenders to determine if the home’s value matches the loan amount. But it’s also helpful during property sales, estate planning, divorce settlements, and tax assessments.
Unlike real estate agents, who focus on market trends, home appraisers stick to the hard facts, square footage, condition, comparable sales, and more.
What Do Home Appraisers Really Look For?
Buyers and sellers often ask: what will the appraiser look at? Here’s what you should know.
Property Size & Layout
- Square footage is a major factor. Appraisers verify it based on public records and measurements.
- The number of bedrooms and bathrooms and how they’re distributed also affects value.
Condition of the Home
- Appraisers note overall upkeep, repairs needed, and whether materials are modern or outdated.
- Homes in excellent condition can be appraised higher than similar properties needing renovation.
Exterior & Curb Appeal
- Roofing, siding, driveway, landscaping, fencing, all these play into the perceived value.
- Peeling paint or damaged exteriors can knock down your appraisal.
Interior Upgrades
- Renovated kitchens, updated bathrooms, new flooring, or HVAC improvements boost appraisal.
- However, personal taste (like bold wall colors) doesn’t usually impact the value.
Functional Utilities & Safety
- Functioning electrical, plumbing, and HVAC systems are non-negotiable.
- Appraisers also check for safety issues, broken windows, exposed wiring, water damage.
Location & Neighborhood
- A home’s location often plays a bigger role than condition.
- Proximity to schools, public transit, parks, and retail can raise a property’s appeal.
- High-crime areas or poorly maintained neighboring homes can lower it.
Comparable Sales (Comps)
- Perhaps the most influential factor. Appraisers examine recently sold homes in your area with similar characteristics.
- They adjust your home’s value based on those results.
Does Cleanliness Affect a Home Appraisal?
Not directly, but it influences perception. A clean, organized home feels well-cared-for, which can help the home appraiser view it in a more favorable light. Dirty or cluttered homes can raise concerns about hidden maintenance issues.
How Do Home Appraisers Determine Square Footage?
Many homeowners are surprised when their appraised square footage differs from listings. Home appraisers use industry-standard measuring tools and often exclude unfinished basements or garages from livable space. Accuracy is crucial, just a 200-square-foot difference can significantly affect value.
Do Home Improvements Always Raise the Appraised Value?
Not always.
- A $50,000 kitchen remodel might not yield a $50,000 boost in appraisal.
- Home appraisers focus on improvements that add utility and market appeal.
- In-ground pools, for instance, can even lower value in some regions due to upkeep and safety concerns.
Improvements that often impact appraisal positively include:
- Energy-efficient upgrades
- Roof replacement
- Bathroom and kitchen renovations
- New windows and HVAC systems
What Hurts a Home Appraisal the Most?
Some of the biggest red flags for home appraisers include:
- Structural damage
- Unpermitted renovations
- Outdated electrical or plumbing
- Pest infestations
- Mold, water damage, or foundation issues
Even something as simple as overpricing can backfire if the appraisal doesn’t match the asking price.
Can You Challenge a Low Appraisal?
Yes, and you should if the numbers don’t seem fair.
- Request a copy of the appraisal report and examine the comps used.
- You or your real estate agent can present additional data or highlight features that were missed.
- A reconsideration of value can be filed with the lender.
Tips to Prepare for a Home Appraisal
Make the appraiser’s job easier and your home’s value higher by preparing properly:
- Clean thoroughly
- Fix minor repairs
- Gather a list of upgrades
- Provide access to all rooms and utilities
- Highlight any unique features or community benefits
Common Myths About Home Appraisals
Let’s clear up a few misconceptions.
- Myth: The appraised value is the same as market value.
- Truth: Appraisals are based on tangible factors. Market value includes buyer emotions, demand, and competition.
- Myth: Home staging boosts your appraisal.
- Truth: It can help with selling, but appraisers focus on fixed features, not décor.
- Myth: You can lie about square footage.
- Truth: Appraisers verify all numbers and often catch discrepancies.
How Often Do Appraisals Come In Low?
It depends on market conditions. In competitive markets where buyers overbid, appraisals may fall short of sale prices. However, home appraisers aim to stay within 5–10% of the expected value range, so drastic differences are uncommon unless the home is significantly overvalued.
Once complete, the home appraiser submits the report to the lender. From there:
- If it meets or exceeds the loan amount, things move forward.
- If it’s lower, buyers may renegotiate, pay the difference, or cancel the deal.
Should You Be Home During the Appraisal?
It’s not required, but it helps. You can point out recent upgrades, answer questions, and ensure the appraiser sees the full property. Just don’t hover or pressure them, they need space to do their job impartially.
Conclusion:
Understanding what home appraisers look for and preparing accordingly can protect your investment, smooth out your sale, and ensure you don’t leave money on the table. They aren’t there to judge your taste or furniture; they care about condition, comparables, and consistency. By taking small steps now, you can add real value later.
Frequently Asked Questions
How long does a home appraisal take?
Typically 30 minutes to a few hours on-site. The full report may take 2–7 days.
How much does a home appraisal cost?
Most range between $300 and $600, depending on location and complexity.
Can a messy house lower an appraisal?
Not directly, but it can give the impression of poor maintenance.
Do home appraisers go into the attic or crawl space?
Not usually unless there are red flags or requested by the lender.
Is an appraisal required for refinancing?
Yes, in most cases. Lenders need updated property valuations.
What if my appraisal is lower than the purchase price?
You can renegotiate the price, challenge the appraisal, or make up the difference.
How far back do appraisers look for comps?
Usually within 3–6 months, and within a 1-mile radius for urban homes.
Can I use the same appraisal for different lenders?
Generally no. Each lender orders their own appraisal for liability reasons.
Do all upgrades need permits to count?
Yes, unpermitted work may be excluded or even flagged as a liability.
Who pays for the home appraisal?
Typically the buyer during a purchase, or the homeowner during a refinance.
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