Having your home appraised is often one of the most stressful parts of the selling process. It’s the key factor that determines the estimated market value of your property and ultimately shapes how much you’ll receive from the sale. If the appraisal comes in lower than expected, it can quickly put you in a difficult position; potentially affecting your negotiations or even delaying the sale altogether.
So, what exactly influences a home’s appraised value? Several factors, both within and beyond your control, play a role in how appraisers determine worth. Understanding these elements helps you prepare effectively and protect the value of your property.
In this guide, we’ll explore the main factors that affect a home appraisal and share practical tips to help you achieve the highest possible valuation.
Pro Tip: Always ensure the person appraising your home is a licensed and experienced professional. A certified appraiser will follow industry standards and provide a fair, accurate assessment that reflects true market conditions.
What Is The Purpose Of A Home Appraisal?
Whenever you sell your home or apply for a mortgage, lenders need an accurate, unbiased assessment of what the property is worth. That’s where a home appraisal comes in. It’s an independent, third-party evaluation designed to establish the fair market value of your property based on its condition, features, and comparable sales in the area.
The appraisal gives banks and buyers confidence that the agreed-upon price reflects the home’s true value. For sellers, it ensures the property is neither undervalued nor overpriced in the market. For buyers and lenders, it helps prevent over-borrowing and financial risk.
Several external factors can influence an appraisal that are completely outside your control, such as:
- Neighborhood trends – The overall desirability, reputation, and upkeep of the surrounding area.
- Zoning regulations – How the property is classified and what type of development is allowed nearby.
- Current housing market conditions – Broader supply, demand, and interest-rate fluctuations that shape overall property values.
However, many factors that contribute to a strong appraisal are within your control. Maintenance, presentation, and upgrades can all make a measurable difference. Understanding these controllable elements allows homeowners to take proactive steps toward securing the highest possible valuation.
What Are Some Of The Main Things Taken Into Consideration During A Home Appraisal?
A home appraisal is a detailed and methodical process that evaluates several aspects of a property to determine its fair market value. While external elements like the neighborhood or local market trends play a role, the appraiser’s primary focus is on the home itself; its structure, size, features, and overall livability.
Below are some of the key factors that appraisers carefully assess:
- Location of the home – The neighborhood’s appeal, proximity to schools, shopping, transport, and amenities.
- Number of bedrooms – The more functional bedrooms a property offers, the higher its market desirability.
- Number of bathrooms – Homes with multiple bathrooms, especially ensuite options, tend to appraise higher.
- Age of the home – Newer homes often command higher values, though well-maintained older homes can perform just as well.
- Square footage – Larger homes typically appraise for more, though efficient use of space also matters.
- Home design and layout – Modern, open-concept layouts generally appeal more to today’s buyers than segmented or outdated designs.
- Features and amenities – Extras like pools, patios, garages, or upgraded kitchens can significantly boost value when they’re in good condition.
These core factors carry the greatest weight in determining a property’s worth because they most directly influence how attractive the home is to potential buyers. The appraiser’s goal is to assess not only the home’s physical structure but also its market appeal in comparison to similar properties nearby.
Pro Tip: According to industry data, having a swimming pool can add an average of $27,000 to a home’s appraised value, though the exact increase depends on location, quality, and local demand.
What Hurts A Home Appraisal That Is Beyond My Control?
Even with the best preparation, some factors that influence your home’s appraised value are completely outside your control. These external conditions are shaped by the broader market and your property’s surroundings, and while you can’t change them, being aware of them helps you set realistic expectations.
Below are some of the most common external factors that can negatively affect an appraisal:
1. The Housing Market
The overall state of the local housing market plays a major role in determining your home’s value. During periods when property values are declining or homes are sitting on the market for longer than usual, appraisers must adjust valuations accordingly. If several comparable homes in your area have recently sold for less, that data will directly influence your appraisal.
Market slowdowns, high interest rates, or an oversupply of homes can all contribute to lower valuations; regardless of your property’s individual condition or appeal.
2. The Surrounding Area
Location remains one of the most powerful factors in real estate valuation. Appraisers closely evaluate your home’s proximity to schools, hospitals, shopping centers, parks, entertainment options, and other community amenities. The closer and more convenient these services are, the higher your home is likely to appraise.
On the other hand, being located farther away from these amenities, or in an area lacking infrastructure, can reduce perceived value.
3. Neighborhood Conditions
Even within the same suburb, the immediate surroundings of your home can make a noticeable difference. If nearby houses are poorly maintained, vacant, or appear neglected, this can drag down your appraisal value. Similarly, noise pollution, frequent traffic, or properties with visible structural issues nearby may create a less favorable impression for appraisers.
While you can’t control your neighbors or the state of nearby properties, keeping your own exterior well-maintained and visually appealing can help offset some of these effects.
What Hurts A Home Appraisal That Is Within My Control?
It’s easy to feel discouraged knowing that some factors affecting your home’s value are completely beyond your control. But don’t lose heart, there’s still plenty you can do to make a positive impact. By focusing on the aspects that are within your power, you can help ensure your home presents itself in the best possible light when the appraiser visits.
Below are several practical ways to boost your property’s appraised value and avoid preventable mistakes.
1. Curb Appeal
First impressions count. Your home’s exterior is the very first thing an appraiser (and potential buyers) notices. Overgrown grass, untrimmed hedges, or cluttered yards can send the wrong message about how well the property has been cared for.
Take time to tidy up the exterior; mow the lawn, sweep pathways, trim trees and bushes, remove debris, and add a few simple touches like fresh mulch or potted plants. Even small improvements to curb appeal can enhance perceived value and set a positive tone before the appraiser even steps inside.
2. Appliances and Major Systems
If your home will be sold with its appliances, the condition and age of those items can make a difference in the appraisal. Modern, energy-efficient appliances and well-maintained HVAC units not only appeal to buyers but also signal that the home has been properly cared for.
Appraisers often consider the longevity and quality of major systems such as heating, cooling, plumbing, and electrical. Replacing outdated or malfunctioning appliances before the appraisal can lead to a noticeable boost in your property’s value.
3. Keep Your Home Presentable
While cleanliness itself doesn’t directly increase an appraisal score, presentation still matters. A well-kept, clutter-free space gives the impression of a home that has been maintained with pride. On the other hand, disorganization, unpleasant odors, or visible disrepair can create a negative subconscious impression, even if the appraiser remains objective.
Before the visit, do a quick declutter, wipe down surfaces, and ensure all rooms are bright and welcoming. Small touches like opening curtains for natural light or adding fresh flowers can make a subtle but lasting difference.
Pro Tip: Many appraisers work with an incremental adjustment system of around $500. That means any visible repair, such as cracked tiles, broken fixtures, or peeling paint, costing more than $500 to fix could affect the valuation. Addressing these repairs before the appraisal helps protect your home’s perceived worth and prevents small issues from reducing your score.
Get A Fast Cash Offer For Your Home In Wisconsin!
Now that you understand what can hurt a home appraisal and how to prepare for one, it’s time to take the next step. If you’re ready to sell your property quickly without waiting on lenders, inspections, or long market listings, Sell House Fast MKE can help.
Their team of experienced home investors is actively purchasing properties across Wisconsin and can provide you with a fair, all-cash offer in as little as 24 hours. There are no hidden fees, commissions, or repair costs; just a simple, straightforward transaction that lets you move on with confidence.
Whether your home needs repairs, is facing foreclosure, or you simply want a quick, stress-free sale, Sell House Fast MKE makes the process fast, easy, and transparent.
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What Factors Affect Home Appraisal – Frequently Asked Questions
Are Home Appraisals Free?
No, home appraisals typically come with a fee. This cost covers the professional service of evaluating your property’s market value. The amount can vary depending on the location, property size, and complexity of the appraisal.
How Much Does a Home Appraisal Cost?
On average, a standard home appraisal costs between $300 and $400. However, in larger metropolitan areas or for high-value properties, the fee can be considerably higher due to the additional time and expertise required for accurate valuation.
What If I’m Only Refinancing My Home, Not Selling It?
Even if you’re not selling, your bank or lender will still require a property appraisal before approving a refinance. The appraisal ensures that the current loan amount aligns with your home’s present market value. Fortunately, the same principles and preparation tips shared in this article apply; keeping your property well-maintained and presentable can help you secure the best possible valuation.
Can Limited Access to Parking Hurt a Home Appraisal?
Yes, it can. Limited or inconvenient parking can reduce a property’s overall appeal and, in turn, its appraised value. Homes located on busy streets with scarce parking options may receive lower scores compared to properties with garages, driveways, or off-street parking. Easy and safe access to parking is often viewed as a strong positive feature, particularly in urban areas where space is at a premium.