Introduction:

A home appraisal is a critical step in any real estate transaction. Whether you’re buying, selling, or refinancing, understanding how appraisals work can help you prepare and avoid surprises. In this post, we'll break down what appraisers look for, how to prepare your home, and what to do if your appraisal comes in too low.

What Is a Home Appraisal?

A home appraisal is an unbiased estimate of a property’s market value conducted by a licensed appraiser. It protects both the lender and the buyer by ensuring the home is worth the amount being financed.

Why Appraisals Matter:

• For buyers, it ensures you’re not overpaying.
• For lenders, it helps mitigate risk on the mortgage.
• For sellers, it can validate your asking price or highlight issues to address.

What Do Appraisers Look For?

• Property size and layout
• Condition of the home (interior and exterior)
• Comparable recent sales ("comps") in the neighborhood
• Location and surrounding amenities
• Upgrades and renovations

How to Prepare for an Appraisal (For Sellers):

1. Clean and declutter the home to make a strong first impression.
2. Complete minor repairs - fix leaks, chipped paint, or squeaky doors.
3. Provide a list of upgrades made to the property with dates and costs.
4. Boost curb appeal with simple landscaping and exterior maintenance.
5. Ensure access to all rooms, the attic, basement, and garage.

What Can Affect Your Appraisal Value?

• Outdated interiors or lack of maintenance
• Unpermitted renovations or additions
• Recent neighborhood price declines
• Poor access, noise, or proximity to industrial zones

What Happens If the Appraisal Comes In Low?

• Renegotiate the sale price with the seller
• Pay the difference in cash
• Request a second appraisal or dispute the value
• Cancel the contract (depending on contingencies)

Tips for Buyers:

• Don't skip the appraisal contingency - it's your protection.
• Be present during the appraisal (if allowed) to point out improvements.
• Work with an agent who understands local market values and comps.

Tips for Sellers:

• Price realistically based on recent comparable.
• Make your home look its best - clean, bright, and welcoming.
• Highlight improvements like energy efficiency, new appliances, or structural repairs.

Conclusion:

Home appraisals are an essential part of the buying and selling process. By knowing what to expect and how to prepare, buyers and sellers can reduce surprises and ensure a smoother transaction. Whether you’re refinancing or closing a deal, being proactive with your appraisal can help you secure the value you deserve.