Understanding the Home Appraisal Process: What It Means for Sellers
Your guide to maximizing your home’s appraised value and smoothing out the path to closing
When you’re selling a home, the appraisal can feel like one of the most nerve-wracking parts of the process. You’ve staged your property, negotiated an offer and now a third-party appraiser is coming in to determine how much your home is actually worth — regardless of what you and the buyer agreed upon.
Whether you’re a seasoned homeowner or a first-time seller, understanding how home appraisals work and how to prepare for one can give you a major advantage. The more informed and proactive you are, the smoother the process and the better the potential outcome.
Let’s break down what a home appraisal really is, how it impacts your sale and the best steps you can take to help ensure your property appraises at its highest possible value.
What Is a Home Appraisal?
A home appraisal is a professional, unbiased opinion of a property’s market value, typically conducted by a licensed appraiser. It’s most commonly ordered by the buyer’s lender during escrow to ensure the home is worth the amount the buyer is borrowing.
The lender wants to confirm that the collateral (the home) supports the loan amount. If the appraisal comes in lower than the purchase price, it can create delays— or even derail the transaction, unless the buyer makes up the difference or the seller agrees to lower the price.
What Do Appraisers Look For?
Appraisers evaluate a combination of factors to arrive at a final value. These typically include:
Property size and layout: Total square footage, number of bedrooms and bathrooms and overall floor plan.
Condition of the home: Structural integrity, level of upkeep, any needed repairs and overall appeal.
Recent upgrades or renovations: Kitchens, bathrooms, flooring, roofing, windows, HVAC, etc.
Comparable sales (“comps”): Prices of similar homes recently sold in your area — usually within the last 3–6 months.
Location: Neighborhood desirability, school district, proximity to amenities and street appeal.
External features: Lot size, landscaping, fencing, garage, patios, or pools.
Appraisers don’t just tally up upgrades — they also consider how those features compare to other homes in the area. So even if you’ve recently remodeled your kitchen, its impact on the appraisal depends on whether similar homes nearby have also been updated.
What Happens If the Appraisal Comes in Low?
A low appraisal doesn’t mean your home isn’t valuable — it just means the lender won’t finance more than the appraised amount. When this happens, buyers and sellers usually have three options:
Renegotiate the price to align with the appraised value.
Have the buyer cover the difference with additional funds.
Challenge the appraisal with a formal rebuttal (requires evidence and comparables).
In some cases, a second appraisal can be ordered, but this is typically only done under special circumstances.
How to Prepare Your Home for the Appraisal
You can’t control the comps or the market — but you can control the condition and presentation of your home. Here’s how to make your property appraisal-ready:
1. Clean and Declutter
While appraisers aren’t judging your décor, a neat, clean home suggests it’s well-maintained. Tidy up inside and out, this includes landscaping, windows, baseboards and even closets.
2. Complete Minor Repairs
Fix leaky faucets, cracked tiles, squeaky doors or chipped paint. These small issues can give the impression of neglect, which may affect perceived value.
3. Highlight Upgrades
Prepare a written list of recent improvements, including dates and costs. Upgrades like a new roof, HVAC system or energy-efficient windows should be clearly documented.
4. Boost Curb Appeal
First impressions count. Trim bushes, mow the lawn, pressure-wash the exterior and ensure the entryway is welcoming.
5. Provide Access to All Areas
Make sure the appraiser can easily access the attic, basement, garage and utility areas. Blocked areas may delay the process or result in incomplete evaluations.
6. Share Helpful Information
If your neighborhood has seen strong sales, share that data. Your real estate agent can prepare a list of recent, relevant comps or provide insight into upgrades not visible on paper.
Common Myths About Home Appraisals
Myth 1: The appraisal always matches the sale price.
Not true. While appraisals often come in close to the contract price, there’s no guarantee.
Myth 2: Appraisers work for the buyer.
Appraisers are hired by the lender to provide an unbiased third-party valuation. They don’t advocate for either side.
Myth 3: Staging boosts your appraisal.
Staging helps attract buyers, but appraisers focus more on square footage, condition and comps than furnishings.
Your Home Appraisal Checklist: How to Prepare and What to Expect
Deep clean and declutter every room
Complete all visible repairs (even small ones)
Compile a list of upgrades with receipts if possible
Enhance exterior landscaping and curb appeal
Ensure full access to all parts of the home
Coordinate with your real estate agent to share recent comps
Be prepared emotionally for any outcome—and discuss next steps with your agent in case of a low appraisal
Bringing It All Together
A home appraisal is one of the final hurdles before closing, but it doesn’t have to be a stressful one. By understanding what appraisers look for and preparing your home accordingly, you can position yourself for a smoother, more successful sale.
The key is to treat the appraisal like another opportunity to showcase the true value of your home — not just its features, but the care and quality you’ve invested in it. With the right preparation and professional support, your home will shine and so will its value.