What Hurts a Home Appraisal?

Selling a home? Home sellers may be worried about the appraisal process, and that’s okay. Certain missteps can drag down a home’s value and even put the sale at risk. If the buyer’s loan depends on the appraisal, a low number can mean delays, renegotiation, or a lost deal altogether. That’s why it’s important to know what hurts an appraisal. Some sellers can make things worse without realizing it. Here’s what to avoid for an appraisal to come in strong.

What Is a Home Appraisal?

A home appraisal is an expert opinion of a property’s fair market value. Lenders require it during the mortgage process to confirm that the home is worth the amount being borrowed. Appraisals are also used in refinancing, home equity loans, or to get a reliable home value estimate before selling.

If someone is asking, “what is a home appraisal,” a good way to think of it as a critical part of the lending and selling journey. Appraisals protect both the lender and the buyer. For sellers, they determine if the offer on the table matches the market. For buyers, it confirms they’re not overpaying. The result affects how much a lender is willing to finance, or whether a refinance will go through, which is why understanding what hurts a home appraisal for refinance is just as important.

Home Value Estimate vs. Appraisal

A home value estimate, like those found on real estate websites, gives a ballpark figure based on public data. These tools are useful for tracking trends, but aren’t always accurate for individual properties. A home appraisal, by contrast, is conducted by a licensed professional who physically inspects a property and applies detailed analysis.

If a homeowner is refinancing or selling, it’s good to rely on the appraisal for the real number. But before a person gets to that stage, running a value estimate can help spot potential red flags and decide if it’s worth making updates before the formal visit. This step is especially helpful when trying to avoid what can hurt a home appraisal.

What Do House Appraisers Look For?

House appraisers follow a standard set of criteria to assess a property’s worth. This includes the location, lot size, home size, condition, and nearby comparable sales. Interior features like square footage, number of bedrooms and bathrooms, flooring, and appliances are also evaluated. On the outside, they examine the roof, siding, foundation, and general curb appeal.

Appraisers also review zoning, utilities, and whether the home is in a flood zone. Every detail helps shape their final judgment. A well-maintained home with functional systems and a clean presentation scores higher. Appraisers look for everything from structural integrity to how well routine maintenance has paid off.

The Appraisal Process: What to Expect

The appraisal process starts when the lender orders the evaluation through a third-party appraisal management company (AMC). The appraiser researches recent comparable home sales, then visits the property to conduct an inspection.

They’ll measure rooms, photograph interiors and exteriors, and document key features. After analyzing all the data, they submit a written report with the final appraised value. If the value comes in lower than expected, a real estate agent can file a reconsideration request if there are factual errors or overlooked comps. That’s why understanding how to prepare for a home appraisal is so important, as it can directly affect a final sale price or refinance terms.

Common Mistakes That Lower Your Home Appraisal

Visible Damage or Poor Maintenance

Appraisers assess the overall condition of a home, not just its size or location. Signs of wear, including roof damage, foundation cracks, water stains, or outdated electrical systems, can raise red flags about deferred maintenance. Even cosmetic flaws, such as chipped paint or broken tiles, may suggest more serious structural or systemic neglect. If issues are visible during a short walkthrough, the appraiser may assume that hidden problems exist as well. Homes with unresolved repairs are harder to insure and often cost more to maintain, which reduces their market value in the eyes of both appraisers and lenders.

A potential home seller can create a checklist and walk through the home as if they were the appraiser. It’s good to pay attention to anything that might seem unfinished or poorly maintained, even small things like missing outlet covers or cracked grout. If the seller can fix it before the appraiser’s visit, they should do so. These repairs may not add value, but they prevent deductions. This is a key point in how to prepare for a home appraisal.

Difficult Access to Parts of the Home

Appraisers are required to assess all livable space. If they can’t access certain areas, such as attics, basements, crawl spaces, or even locked rooms, they are forced to omit those sections or make assumptions, which rarely work in a homeowner’s favor. For example, if the attic is inaccessible, they may not be able to include that square footage or verify insulation and ventilation. Incomplete access also raises concerns about what might be hidden, such as mold, pests, or damage. These are some examples of what hurts a home appraisal for refinance or sale.

Neglected Exterior and Yard

Appraisers photograph the outside of the property and are required to comment on curb appeal and structural integrity. Overgrown landscaping, peeling paint, broken gutters, or cracked walkways can make a home look uninviting and worn down. More importantly, poor exterior upkeep can suggest foundational or drainage issues that are expensive to fix. For example, a crack in the driveway aligned with a wall crack and a sticky sliding door may prompt the appraiser to question the stability of the foundation, something that might require further inspection and reduce appraised value.

If time is short, focus on what appears in the appraiser’s front, back, and street-view photos. Cut the grass, power wash the exterior, fix any broken fencing, and patch visible cracks. Even cleaning the windows and trimming tree branches can improve the impression of care and order. These details can influence the final home value estimate.

Unpermitted Renovations

If a homeowner has added a room, finished a basement, or made structural changes without permits, the appraiser may disregard those updates entirely. Even if the work looks great, it doesn’t meet legal standards unless it’s documented and approved by a local building authority. Worse, it could raise liability concerns for future buyers or signal a lack of compliance to lenders. Always pull permits for major upgrades and keep a copy for the appraiser. Lack of documentation is one of the most avoidable factors when it comes to what can hurt a home appraisal.

Outdated or Dysfunctional Systems

Old plumbing, faulty wiring, or aging HVAC systems can significantly lower an appraisal. Appraisers assess not just the visual condition of a home but also its core functionality. A home with a 20-year-old furnace or electrical issues becomes a future repair job in the eyes of a buyer, which drags down perceived value. Regular maintenance and timely upgrades go a long way in protecting your appraisal number, especially during the appraisal process for a refinance.

Missing Documentation for Upgrades

A homeowner may have poured money into upgrades, but without receipts, permits, or before-and-after photos, the appraiser may not be able to verify them. Building improvements like a new HVAC system, upgraded electrical panel, or renovated kitchen need proof to be counted toward increased value. Unpermitted work, no matter how well done, may even backfire, especially with government-backed loans like FHA or VA, where stricter property standards apply. Appraisers can’t assign value to work they can’t verify, and they may be required to mark the home down if the improvements violate local codes or were completed without inspection.

Keep a folder with dated invoices, warranty information, and permit documents. If a homeowner has made changes over time, they can write a short summary of what was done and when. Leave this on the counter for the appraiser during their visit. These small steps are part of how to prepare for a home appraisal and prevent disputes down the line.

A REMAX agent can help homeowners avoid costly appraisal mistakes. Connect with a local REMAX professional today, they know exactly what do house appraisers look for and how to position a property to get the best possible outcome in the appraisal process.