A Home Appraisal Checklist

Understanding the Home Appraisal Process

Finding the perfect home is only one part of buying a house. Once you’ve found “the one” and signed a sales contract, the next step is arranging the purchase and finalizing your financing.

Most buyers — whether first-time or experienced — use a home loan called a mortgage to complete the purchase. When you apply for financing, your lender needs to confirm that the home is worth the agreed price. That’s where a home appraisal comes in.

What Is a Home Appraisal?

A home appraisal is an independent, third-party assessment of a property’s value. The appraiser reviews the home’s condition, features, and comparable properties in the area to determine its market worth at the time of purchase or refinance.

Appraisals typically cost between $300 and $600, depending on the home’s size, location, and type. For example, multi-family properties or homes with large lots may cost more to evaluate. Usually, the buyer pays for the appraisal — unless the seller agrees to cover it during negotiations.

Who Conducts a Home Appraisal?

A professional, licensed home appraiser performs the evaluation. Appraisers are independent and unbiased, meaning they don’t work for you, your real estate agent, or your lender. While lenders often recommend reputable appraisers, these professionals must remain neutral and separate from the lending organization.

What Factors Affect the Appraisal Value?

Appraisers look at both the home itself and the local housing market. Here are key factors they consider:

1. Home Condition

The home’s condition plays a major role in its value. The appraiser inspects the property to assess its livable state and compliance with safety codes. This is different from a home inspection, which focuses on damage or repairs. The appraisal includes the number of bedrooms and bathrooms, proper egress, safety concerns, and any major hazards like lead paint.

2. Special Features and Upgrades

Upgrades and unique features can boost a home’s value. These might include luxury finishes such as granite countertops or hardwood floors, or additions like a swimming pool or in-law suite. However, upgrades only add value if they are permanently installed.

3. Comparable Properties (Comps)

Comparable homes, or “comps,” heavily influence the final appraisal value. If a similar home nearby sold for less, your home’s value may drop. Conversely, if property prices in your area are rising, it can increase your appraised value. Appraisers compare homes of similar size, layout, and features to determine fair market value.

What to Do If You Disagree with the Appraisal

If you believe the appraisal is inaccurate, you can file an appeal. To support your case, gather evidence such as recent sales of similar homes in your area.

In the meantime, you can help ensure a positive appraisal by:

• Keeping your home clean and well-maintained

• Completing necessary repairs before the appraiser’s visit

• Having realistic expectations about your property’s value

Final Thoughts

A home appraisal protects both you and your lender by confirming the property’s true value. By understanding how the process works and preparing your home, you can improve your chances of a smooth transaction — and move one step closer to closing on your dream home.