If you’re buying or selling a home, the home appraisal can feel like the moment where everything is suddenly out of your hands.
The good news? Appraisals aren’t magic. They’re a structured opinion of value based on real market data (recent sales) plus the appraiser’s on-site evaluation of the property. And if the appraised value doesn’t match the contract price, it doesn’t automatically mean the deal is over.
Below is a plain-English guide to how home appraisals work, what can cause problems, and what buyers and sellers can do to keep things moving—especially here in the Bolivar/Polk County area, where unique homes, acreage, and rural properties can make things a little more “fun.”
What is a home appraisal (and why do lenders require it)?
A home appraisal is a professional estimate of a property’s current market value. Most lenders require an appraisal to confirm the home is worth at least what they’re lending. It’s a way to protect the lender (and the buyer) from financing a home far above what the market supports.
In short: the appraisal helps answer, “If this home went back on the market tomorrow, what would it likely sell for based on recent, similar sales?”
Appraisal vs. inspection (they’re not the same)
People mix these up all the time, so here’s the quick breakdown:
- Appraisal: Focuses on value. The appraiser looks at comparable sales (comps), basic condition, and market factors to estimate market value.
- Inspection: Focuses on condition and defects. The inspector takes a deeper look at systems like roofing, HVAC, plumbing, electrical, foundation, and more.
A home appraisal may note obvious condition issues, but it’s not a substitute for a home inspection.
How appraisers determine value (the 3 biggest ingredients)
While every report is a little different, most appraisals boil down to three major components:
1) Comparable sales (“comps”)
This is the backbone of the appraisal. Appraisers look for homes that have recently sold, usually close by, that are similar in:
- Size and layout
- Age and style
- Lot size/acreage
- Condition and updates
- Features (garage, outbuildings, etc.)
Closed sales carry the most weight because they show what buyers actually paid—not what someone hopes to get.
2) Adjustments for differences
No two homes are identical, so the appraiser makes adjustments for key differences between the subject property and the comparable sales. Common adjustments include:
- Square footage
- Beds and baths
- Garage spaces
- Lot size/acreage
- Finished basement/bonus spaces
- Updates (kitchen, bathrooms, flooring, windows, roof, HVAC)
- Outbuildings (how they compare to what’s typical in the area)
3) Basic condition + safety
Appraisers aren’t doing a deep inspection, but they do evaluate overall condition and note issues that affect safety, livability, or marketability. Some loan types have more specific property condition requirements than others, so visible issues can matter.
The most common reasons home appraisals come in low
A low appraisal doesn’t always mean a home is “overpriced” in a bad way—it often means the available sales data doesn’t support the price as cleanly as we’d like. Here are some of the most common reasons:
- Not enough similar comps. This is common in rural areas, with acreage, or with unique homes.
- The market is moving faster than the data. Appraisals are based on closed sales, which lag behind what’s happening today.
- Over-improving for the area. Beautiful upgrades are great, but value is still anchored to what nearby homes are selling for.
- Condition issues. Deferred maintenance or obvious problems can reduce value or trigger lender concerns.
- Unique features that don’t “comp” well. Things buyers love—custom finishes, special outbuildings, unusual layouts—can be hard to match in recent sales.
This is one reason we’re big on reviewing comps early and setting expectations before you get emotionally attached to a number.
How sellers can prepare (without overspending)
You don’t need a full remodel to help your appraisal. The goal is to make the home easy to evaluate accurately and to reduce anything that could raise questions.
Make it easy to access and evaluate
- Clear paths to important areas: attic, crawlspace, electrical panel, HVAC, outbuildings
- Unlock gates, outbuildings, and utility rooms if needed
- Ensure pets are secured and the appraiser can move freely
Fix the small-but-obvious stuff
Appraisers notice condition and basic upkeep. A few “fast fixes” that often help:
- Replace broken light fixtures/bulbs
- Repair missing trim, loose handles, minor drywall damage
- Address obvious leaks or water stains (and document repairs)
- Touch up peeling paint and visibly worn areas
- Tidy exterior items (loose gutters, damaged screens, cracked steps)
Check out our Pre-Listing Walkthrough for 25 Fast Fixes to Increase Appraisal for a complete list.
Document improvements
Appraisers don’t automatically know what’s new. A simple one-page list can help:
- What was updated
- Approximate date
- Approximate cost (if you have it)
- Permits/warranties (if applicable)
Upgrades don’t always add dollar-for-dollar value, but documentation helps the appraiser understand the home’s condition and improvements.
How buyers can prepare (and avoid home appraisal drama)
Most appraisal stress is prevented before the offer is written.
- Look at comps, not just listing photos. A great listing can still be hard to support if the comps don’t match.
- Know your appraisal contingency. This clause is what gives you options if the home appraises low.
- Be thoughtful about terms. Price matters, but terms can win deals (and can also protect you).
If you’re unsure what’s realistic, we can walk through the comp picture with you before you make an offer.
What happens if the appraisal comes in low? (You have options.)
Option A: Renegotiate the price
Often, the simplest solution is adjusting the purchase price closer to the appraised value.
Option B: The buyer brings the difference (“appraisal gap”)
In some cases, the buyer chooses to bring extra cash to cover the gap between the appraised value and the contract price. This can make sense when:
- The home is hard to replace
- The buyer plans to stay long-term
- The buyer is comfortable with the financial picture
Option C: Meet in the middle
Sometimes the buyer and seller split the difference to keep the deal moving.
Option D: Adjust the deal structure (when possible)
Depending on financing and the lender’s guidelines, there may be ways to restructure terms. This is always a lender + contract conversation, but it can be worth exploring.
Option E: Request a reconsideration of value (ROV)
If the report has factual errors or missed strong comps, the lender may allow a reconsideration. This is most effective when you can point to:
- Incorrect square footage or features
- Missed upgrades or improvements
- Better comparable sales that should have been included
Option F: Walk away (if the contract allows)
If the numbers can’t be worked out and an appraisal contingency is in place, the buyer may be able to exit the deal.
Quick appraisal FAQ
How long does an appraisal take?
Timing depends on the lender, the appraiser’s schedule, and the season. In busy periods, it can take longer than expected—so it’s smart to plan for some wiggle room.
Do renovations add value dollar-for-dollar?
Not usually. Some upgrades help more than others, and the final value still depends heavily on what comparable homes are selling for.
Are online estimates accurate?
They can be a rough reference, but appraisals rely on closed sales data and an in-person evaluation. They’re built differently.
Can we “challenge” an appraisal?
You typically can’t argue opinions, but you can address factual issues or present better comparable sales through the proper lender process.
Want to avoid appraisal surprises?
Whether you’re selling and want to reduce the risk of a low appraisal, or buying and want to understand what the numbers really support, we can help.
If you’d like, we can:
- Run a comp-based value check,
- Talk through likely appraisal outcomes,
- And create a simple plan to prep your home before the appraiser arrives.
Reach out anytime—our goal is to make the process clear, calm, and successful.
