When it comes to selling your home, first impressions matter, especially for the home appraisal. To boost your chances of a higher valuation, sellers should focus on improving curb appeal, completing minor repairs, decluttering, and providing accurate records of upgrades.
Whether you’re selling a home in Austin, TX, Denver, CO, or Raleigh, NC, this Redfin guide will walk you through practical tips to prepare for your appraisal, why it matters in the selling process, and how it can impact your final sale price.
What is a home appraisal and why is it important?
A home appraisal is an unbiased evaluation of a property’s market value, determined by its condition, features, and comparable sales in the area. Lenders typically require an appraisal before approving a mortgage to confirm the home is worth the loan amount. This process helps protect buyers from overpaying and lenders from financing more than the property’s actual value.
>> Read: What is a Home Appraisal? Everything You Need to Know About the Home Appraisal Process
Home appraisal tips for sellers
Preparing for an appraisal is about more than just a clean house – it’s about understanding the specific market data and property details that justify your home’s worth.
Castleigh W. Johnson, Founder & CEO of My Home Pathway, shares “There is a lot of data out there that homeowners can leverage when understanding their home’s value. Comparing listed and sold homes in your neighborhood, and understanding the condition of your home in reference to those listings or sold homes. Having up to date information is the most critical tool to understanding what your home should be selling for.”
He goes on to share, “if you have significant upgrades to your home that could bring a premium to the sale and understanding what that range of premium boost could be could swing a price difference of $10,000 – $50,000 depending on the price of the home.”
Here are steps to take to help ensure your home’s condition and documentation align with the target value:
- Work with a real estate agent: Leverage their market insights and comparable sales data to support your home’s value.
- Schedule smartly: Aim for midday appointments to ensure optimal natural lighting for the walkthrough.
- Document maintenance: Provide records for HVAC, roofing, and pest control to prove the home has been well-cared for.
- Highlight energy efficiency: Point out high-value additions like solar panels, new windows, or smart thermostats.
- Prepare utility and tax records: Help the appraiser quickly verify the property’s total operating costs and efficiency.
- Choose the best offer: Prioritize bids with favorable appraisal contingencies to ensure a smoother closing.
- Communicate openly: Be available to answer questions directly, but avoid “hovering” or overselling.
How long does a home appraisal take?
A home appraisal is a multi-step process including an in-person evaluation and research. The timeline varies by property type, from a few days for some, to several weeks for larger or more complex homes.
On-site visit
The initial on-site visit takes 30 minutes to a few hours, depending on home size and condition. A standard 3-bedroom home might take 45 minutes, while a large farmhouse could require several hours and extra research.
Full process
After the on-site visit, the appraiser spends several days reviewing comparable sales, analyzing the market, and finalizing the report. In most cases, you’ll receive the completed appraisal within a week, though timelines can vary based on market demand and scheduling availability.
What do home appraisers look for?
Appraisers determine a property’s market value by considering several key factors, including age. However, the age of the home isn’t always a straightforward number; it’s often about how the home has evolved.
Mark Buskuhl of Ninebird Properties shares, “A home’s effective age often matters more than its actual age when it comes to appraised value. Changes to the layout, cosmetic updates, and upgrades to major systems all play a role. As a result, a well-maintained 40-year-old home can appraise higher than a 20-year-old home if it shows like a newer property. “
To determine this “effective age” and overall value, appraisers often look at:
- Property size and layout: Total square footage, number of bedrooms and bathrooms
- Condition: Structural integrity, maintenance, and any needed repairs
- Upgrades and features: Renovations, energy-efficient systems, high-end finishes
- Location: Neighborhood desirability, proximity to schools, parks, and amenities
- Comparable sales: Recent sale prices of similar homes in the area
- Lot size and use: Outdoor space, landscaping, and potential for expansion
What hurts a home appraisal?
While many homeowners worry about paint colors or cluttered rooms, appraisers are primarily looking for “deal-breakers” that affect the home’s long-term viability.
Keith Boggs of Stonebriar Property Inspections offers a unique perspective as a home inspector, “One of the most common issues I see that can trigger problems for an appraisal is significant moisture intrusion or drainage issues, things like foundation movement tied to poor grading, active roof leaks, or long-term water damage. Even if a home shows well cosmetically, documented moisture-related defects tend to raise red flags for both lenders and appraisers because they signal potential structural or long-term repair concerns.”
Several other factors can lower a home’s appraised value. Here’s how they might play out in real life:
- Deferred maintenance: Visible disrepair like peeling paint or an aging roof.
- Poorly executed renovations: DIY projects that lack professional finishes or necessary permits.
- Over-personalized design: Unique features, like built-in aquariums or bold colors, that don’t appeal to the average buyer.
- Neighborhood decline: Increased vacancy rates or local crime that lowers overall area desirability.
- Low comparable sales: Nearby foreclosures or distressed sales that set a lower price ceiling for your street.
- Location-based issues: Proximity to noisy highways or recent inclusion in a designated flood zone.
A successful home appraisal checklist
With the right home appraisal tips for sellers and some preparation, you can help your property stand out and support a stronger value.
- Tidy up: Declutter and clean all rooms, including closets and storage, to make the home feel spacious and well-maintained.
- Complete minor repairs: Repair leaky faucets, patch holes, fix broken fixtures, and ensure doors and windows work properly.
- Showcase upgrades: Provide renovation documentation (permits, receipts) to the appraiser for added value.
- Improve curb appeal: Mow lawn, trim shrubs, clean gutters, and freshen exterior paint for a strong first impression.
- Highlight neighborhood benefits: Highlight nearby schools, parks, transportation, and amenities that boost property value.
- Be available: Allow the appraiser access to all areas: attics, basements, garages, and storage.
- Stage key rooms: Maximize space and highlight the layout by arranging furniture. Staging the living room, kitchen, and master bedroom can positively influence perception.
- Provide a list of recent improvements: Highlight new HVAC, roof, or appliances for the appraiser to see added value.
- Keep pets and personal items out of the way: Minimizing distractions can help the appraiser focus on the home’s features.
- Maintain documentation of comparable homes: Keep a list of recent, similar property sales handy for the appraiser’s reference.
>> Read: How to Prepare for a Home Appraisal
FAQs: Home appraisal tips for sellers
1. Who pays for the home appraisal?
Typically, the buyer pays as part of closing costs, though this can be negotiated.
2. How much does home appraisal cost?
The cost of a home appraisal varies based on location, property size, and complexity of the appraisal. While the buyer typically pays for the appraisal as part of closing costs, the fee is a small investment compared to the overall purchase price.
3. Can I challenge a low appraisal?
Yes. You can request a reconsideration by providing additional comparable sales or evidence of overlooked upgrades. If you include an appraisal contingency in your purchase agreement, you’ll also have the option to renegotiate with the seller or walk away from the deal without losing your earnest money.
>> Read: What is an Appraisal Gap?
4. Do appraisers look inside closets and storage areas?
Yes, they assess all parts of the home to evaluate condition and functionality.
5. How is an appraisal different from a home inspection?
An appraisal estimates market value, while an inspection focuses on the property’s condition and potential repairs.
>> Read: Appraisal vs. Inspection for Home Buyers
5. Should I price my home above the appraised value?
Pricing your home above the appraised value can deter buyers, particularly those needing financing, as lenders rarely approve loans exceeding the appraisal. This may shrink your buyer pool or jeopardize the sale.
6. Can I use an online calculator to get an idea of what my home is worth?
Yes, online home value estimators can give you an estimate of what your home is worth, but they shouldn’t replace a professional appraisal or a comparative market analysis from a real estate agent.