If you’re buying, selling, or refinancing a home, an appraisal is a critical part of the process. But what exactly do appraisers look for in a home? Whether you’re a homeowner trying to increase your property’s value or a buyer concerned about pricing, understanding the appraisal process can make a big difference.
A home appraisal is conducted by a licensed professional who determines the market value of a property. Lenders rely on this evaluation to ensure that the amount they’re lending doesn’t exceed the home’s worth. While many homeowners assume that cosmetic upgrades make the biggest difference, appraisers actually focus on a combination of structural, location-based, and market factors.
In this post, we’ll break down the key elements appraisers consider—everything from square footage and comparable sales to the condition of your roof. You’ll learn how to prepare your home for an appraisal and what you can do to boost your home’s value.
If you’re preparing to sell, working with a local expert can give you even more insight. Consider connecting with a real estate agent near you for tailored advice.
Want to go deeper into the appraisal process? Check out Fannie Mae’s Appraiser Guidelines to see what professionals use as a benchmark.
What Do Appraisers Look for in a Home?
Home appraisals play a crucial role in the buying and selling process. Whether you’re refinancing or selling, an accurate appraisal determines your home’s market value. But what exactly do appraisers evaluate?
First, appraisers look at the overall condition of the property. This includes the structure, roof, foundation, plumbing, and electrical systems. Obvious damage or needed repairs can lower your home’s appraised value.
They also evaluate location. Neighborhood trends, nearby schools, public transportation, and crime rates all influence your home’s worth. A home in a desirable area typically scores higher.
Appraisers consider your home’s size and layout. More square footage and a practical floor plan can raise your value. Number of bedrooms and bathrooms are also key.
Next, they review any upgrades or renovations. Modern kitchens, updated bathrooms, and energy-efficient systems may improve your score. However, quality and compliance with building codes matter too.
Curb appeal also counts. A well-kept yard, fresh paint, and clean exterior make a positive first impression. Interior cleanliness and staging can enhance perceived value.
Finally, appraisers look at comparable home sales (comps). They compare your home to similar ones recently sold in the area to gauge market trends and set a fair price.
For more information, explore the CFPB’s guide on home appraisals. Or, speak with a qualified real estate agent to learn how to prepare for one.
Why Appraisals Matter in Real Estate
Appraisals help ensure that homes are bought and sold at fair market value. They protect both buyers and lenders from overpaying. In most real estate transactions, the mortgage lender requires an appraisal before approving the loan.
For sellers, a strong appraisal can support your listing price or justify a buyer’s offer. If the appraisal comes in too low, however, it could delay or derail the deal—especially if the buyer needs financing.
Buyers also benefit. A reliable appraisal confirms they aren’t paying more than the property is worth. This provides confidence in their investment and can even serve as a negotiation tool.
Lenders rely on appraisals to mitigate risk. The appraisal ensures the home is valuable enough to back the loan. If a buyer defaults, the lender must be able to recover the loan amount through resale.
In short, appraisals are a key checkpoint in the homebuying process. They promote transparency and protect all parties from financial loss.
Curious about the full appraisal process? Check out Investopedia’s explanation of home appraisals.
How to Prepare for a Home Appraisal
Preparing your home for an appraisal can make a significant difference in the final valuation. Start with basic curb appeal. A tidy lawn, clean driveway, and fresh exterior paint can make a strong first impression.
Inside the home, cleanliness and organization matter. Declutter each room and make minor repairs, such as fixing leaky faucets or squeaky doors. These small touches can help present your home as well cared for.
Highlight recent upgrades by compiling a list for the appraiser. Include information on new appliances, roofing, windows, HVAC systems, or any remodels. Provide receipts or permits if available.
Make sure all areas of the home are accessible. This includes the attic, basement, garage, and any outdoor structures. Appraisers must inspect all spaces to provide an accurate assessment.
If possible, be present during the appraisal to answer questions and provide documentation. However, avoid hovering, which can create pressure or discomfort.
Lastly, research recent comparable sales in your area. This gives you a benchmark and can help you understand the valuation process better.
Final Thoughts on Home Appraisals
Home appraisals are a critical part of the real estate process. They provide an unbiased assessment of a property’s value, protecting both buyers and lenders from overpaying. Understanding what appraisers look for—from location and layout to upgrades and comparable sales—can help homeowners and buyers prepare effectively.
Whether you’re selling, refinancing, or buying, a strong appraisal can support your financial goals and help prevent unexpected surprises. Take the time to maintain your home, highlight key features, and review recent local sales. With the right preparation, you’ll be better positioned for a smooth and successful transaction.
For more guidance on selling or buying a home, consider speaking with a knowledgeable real estate agent who understands your market and the appraisal process.
