Selling a home? Home sellers may worry about the appraisal process, and that’s understandable. Certain missteps can lower a home’s value and even jeopardize the sale. If the buyer’s loan hinges on the appraisal, a low figure can cause delays, renegotiation, or a failed deal. That’s why knowing what harms an appraisal is crucial. Some sellers unintentionally worsen things. Here’s what to avoid for a strong appraisal.

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 ensure the home is worth the loan amount. Appraisals are also used in refinancing, home equity loans, or to obtain a reliable value estimate before selling.

If someone asks, “what is a home appraisal,” think of it as a key step in lending and selling. Appraisals protect the lender and buyer. For sellers, they verify if the offer matches the market. For buyers, they confirm no overpayment. The result impacts how much a lender will finance or if a refinance proceeds, making it vital to understand what harms a home appraisal for refinance.

Home Value Estimate vs. Appraisal

A home value estimate from real estate websites provides a rough figure based on public data. These tools help track trends but aren’t precise for specific properties. A home appraisal, however, involves a licensed professional who inspects the property and conducts detailed analysis.

For refinancing or selling, rely on the appraisal for the accurate number. Before that, a value estimate can highlight red flags and guide updates prior to the formal visit. This is useful for avoiding what can harm a home appraisal.

What Do House Appraisers Look For?

House appraisers use standard criteria to determine worth, including location, lot size, home size, condition, and nearby comparable sales. They evaluate interior features like square footage, bedrooms, bathrooms, flooring, and appliances. Exterior elements include the roof, siding, foundation, and curb appeal.

Appraisers also check zoning, utilities, and flood zone status. Every detail influences the final opinion. A well-maintained home with functional systems and clean presentation scores higher. They examine structural integrity and the benefits of routine maintenance.

The Appraisal Process: What to Expect

The process begins when the lender orders the evaluation via a third-party appraisal management company (AMC). The appraiser researches recent comparable sales, then inspects the property.

They measure rooms, photograph interiors and exteriors, and note key features. After data analysis, they submit a report with the appraised value. If it’s lower than expected, a real estate agent can request reconsideration for errors or missed comps. That’s why knowing how to prepare for a home appraisal matters—it directly affects sale price or refinance terms.

Common Mistakes That Lower Your Home Appraisal

Visible Damage or Poor Maintenance

Appraisers evaluate overall condition beyond size or location. Signs of wear like roof damage, foundation cracks, water stains, or outdated electrical systems signal deferred maintenance. Even cosmetic issues, such as chipped paint or broken tiles, may imply deeper neglect. Visible problems during a brief walkthrough can lead appraisers to assume hidden issues. Homes with unresolved repairs are harder to insure and costlier to maintain, reducing value for appraisers and lenders.

Create a checklist and tour the home like an appraiser. Note anything unfinished or poorly maintained, even in minor items like missing outlet covers or cracked grout. Fix what’s possible before the visit. These repairs may not add value but prevent deductions—a core aspect of preparing for a home appraisal.

Difficult Access to Parts of the Home

Appraisers must evaluate all livable space. Inaccessible areas like attics, basements, crawl spaces, or locked rooms force omissions or unfavorable assumptions. For instance, a blocked attic means excluding that square footage or verifying insulation and ventilation. Limited access raises suspicions of mold, pests, or damage—examples of what harms a home appraisal for refinance or sale.

Neglected Exterior and Yard

Appraisers photograph the exterior and comment on curb appeal and structural integrity. Overgrown landscaping, peeling paint, broken gutters, or cracked walkways make a home appear unappealing and worn. Poor exterior upkeep can suggest foundational or drainage issues that are costly 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 foundation stability, potentially requiring further inspection and lowering 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 broken fencing, and patch visible cracks. Even cleaning windows and trimming branches can enhance the impression of care. These details influence the final home value estimate.

Unpermitted Renovations

If a homeowner added a room, finished a basement, or made structural changes without permits, the appraiser may disregard those updates. Even if the work looks excellent, it lacks legal approval unless documented by local authorities. This can raise liability concerns or signal noncompliance to lenders. Always obtain permits for major upgrades and keep copies for the appraiser. Lack of documentation is a highly avoidable factor in what can hurt a home appraisal.

Outdated or Dysfunctional Systems

Old plumbing, faulty wiring, or aging HVAC systems can significantly reduce an appraisal. Appraisers assess core functionality, not just appearance. A home with a 20-year-old furnace or electrical issues represents future repairs to buyers, lowering perceived value. Regular maintenance and timely upgrades help protect the appraisal number, especially in a refinance process.

Missing Documentation for Upgrades

A homeowner may have invested in upgrades, but without receipts, permits, or before-and-after photos, the appraiser cannot verify them. Improvements like a new HVAC system, upgraded electrical panel, or renovated kitchen need proof to add value. Unpermitted work may backfire, especially with FHA or VA loans that have stricter standards. Appraisers cannot assign value to unverified work and may deduct if it violates codes.

Keep a folder with dated invoices, warranties, and permit documents. If changes were made over time, write a brief summary of what was done and when. Leave this on the counter during the visit. These steps are essential in how to prepare for a home appraisal and avoid disputes.