Surprising factors that can help or hurt a home appraisal

When you buy a home, your lender orders a home appraisal to make sure the home's value stands up to the loan amount. If the appraisal comes in too low, it can create problems with your loan: lenders won't let you borrow more than the home is worth, which means you'd have to negotiate a lower price with the seller, bring extra cash to the table, or walk away from the home.

Understanding what hurts a home appraisal, and what you can actually control, puts you in a better position whether you're buying, selling, or refinancing.¹

Key takeaways:

• Small issues can add up. Deferred maintenance, outdated systems, poor curb appeal, and overly personalized renovations can all hurt a home appraisal.
• The market matters. A home can appraise lower if there aren’t strong comparable sales nearby, buyer demand is soft, or higher mortgage rates are putting pressure on prices.
• Preparation can help support value. While homeowners can’t control every factor that affects property value, simple repairs, a well-presented home, and documented upgrades can help the appraisal go more smoothly.

How does a home appraisal work?

When you borrow money to buy a house, the house acts as collateral. The bank hires an independent expert to conduct a home appraisal to figure out, “If this borrower stops paying their mortgage and we have to foreclose, can we actually sell this house to get our money back?”

That’s why lenders require an appraisal before approving a mortgage or refinance to make sure the loan amount is supported by the home's actual worth.

This is what the process typically looks like:

• The lender orders the appraisal after your offer is accepted (for a purchase) or after you apply (for a refinance).
• The appraiser visits the property, measuring square footage, photographing the home, and assessing its condition, inside and out. A standard visit for a single-family home usually takes 30 minutes to a couple of hours.
• The appraiser reviews comparable sales, or recently sold homes in the area that are similar in size, age, and condition, and factors in market conditions.
• A report is delivered, usually within a week or two. The report includes a final appraised value, which determines how much the lender is willing to finance.
• Purchase vs. refinance appraisals: Both follow essentially the same process, but a refinance appraisal focuses on your current home equity rather than whether you're paying a fair price. For refinances, a higher appraised value generally means better loan terms.

11 key factors that affect a home appraisal

A home appraiser takes several aspects of a property into account to define its fair market value. Depending on the market, location, and overall condition of the home, each factor can act as a major asset that drives value up, or a liability that pulls it down.

1. Home size and layout

Square footage matters, but layout does too. Appraisers look at the total size of the home, the number of bedrooms and bathrooms, and how the space is arranged. A home with an open floor plan that feels spacious and functional is typically valued higher than one with choppy, disconnected rooms of the same square footage.

Dated or unusual layouts – like a bedroom you have to walk through to reach another room, or a single bathroom in a multibedroom home – can pull value down compared to more in-demand designs.

2. Home age and condition

Newer homes in prime condition are generally valued higher. Even so, a well-maintained older home can still appraise well, especially if it's been updated and maintained. What hurts appraisals isn't necessarily age by itself, but aged homes that have been neglected.

Appraisers will notice deferred maintenance, water damage, mold, foundation problems, and anything else that suggests the home hasn't been properly cared for. Older homes or fixer-uppers are also more likely to have outdated electrical, plumbing, or structural issues, potentially not meeting current building codes and reducing the market value.

3. Home materials

A home’s materials affect both durability and value. A high-quality tile or metal roof looks good and resists fire and hail damage better than standard asphalt shingles, and is often more attractive to both appraisers and buyers.

Quality and durability applies inside the home as well. Hardwood floors generally hold value better than carpet, for example. Appraisers look at materials as indicators of not only longevity, but ongoing maintenance costs.

4. Systems and appliances

Appraisers will consider the age and condition of major home systems like HVAC, plumbing, electrical, and water heater, since these can materially affect the value.

An outdated electrical panel or knob-and-tube wiring can affect safety, insurability, and home value.

An HVAC system past its expected lifespan (around 10–20 years) can pull value down, especially if nearby comparable homes have newer units.

Modern, energy-efficient upgrades, like a tankless water heater or high-efficiency furnace, can also work in your favor.

Appliances can matter, too: appraisers focus less on assigning value to individual appliances and more on whether essential or built-in appliances are functional, well-maintained, and consistent with what buyers expect in that market.

5. Features and amenities

Special features can either add value to your home or subtract from it, depending on how much demand there is for them in your market. Features that tend to add value include fireplaces, finished basements, patios and decks, dedicated pantries, walk-out basements, and accessory dwelling units (ADUs).

Smart home features, like smart thermostats, security systems, and lighting automation, are increasingly seen as value-adds, though that can vary by market. Pools can go either way: in a warm climate, a pool might be expected; in colder markets, it can add cost and liability without adding much value. Features like jack-and-jill bathrooms or koi ponds are more niche and have less of an impact on value.

6. Closets and storage

Storage can be popular with buyers and is also factored into the appraisal. Large walk-in closets, built-in cabinetry with drawers and shelving, and well-organized storage throughout the home can all add to a home’s appraised value if they're in good condition. Finished storage in garages and laundry rooms is also a plus.

Storage that works against you: temporary wire shelving systems, poorly constructed DIY built-ins, or converted closets that don’t function as intended.

7. Curb appeal

One of the most controllable factors going into a home appraisal is curb appeal. First impressions matter, and an appraiser will notice if a home has fresh exterior paint, maintained landscaping, clean walkways, and a roof in good condition. A well-maintained exterior can show the home has been cared for.

On the flip side, overgrown trees, a dead or patchy lawn, peeling siding, missing roof tiles, or broken gutters can reduce appraised value.

8. Land and lot characteristics

The size and shape of a property's lot affects value too. A larger lot usually equates to more value, since it creates room for additions, pools, or outbuildings, and can also mean more privacy. Corner lots or those on busy streets can present privacy and noise concerns that are less desirable, affecting value.

An oddly shaped or steeply sloped lot might limit usability, therefore influencing value. High-maintenance land features, like large amounts of mature tree coverage or drainage issues, can also raise cost concerns for buyers and may be noted in the report.

9. Location

Location is a big factor when it comes to home value. Regional features, like the climate and job markets, drastically affect fair market value. A modest home in San Francisco or New York will cost much more than the same home in rural Iowa because of the location, and where someone lives plays a large role in their day-to-day life.

At the neighborhood level, appraisers look at walkability, school quality, crime rates, and nearby amenities. They also look at the condition of surrounding homes, since foreclosed, vacant, or properties that look neglected nearby can pull down an otherwise well-maintained home's value. A home close to noise sources (highways, rail lines, airports) or undesirable businesses is also factored in and affects how much someone is willing to pay for a property.

10. Comparable properties

Appraisers rely heavily on real estate comps – recent sales of similar nearby homes – to help determine a home’s appraised value.

The stronger the comps, the more accurate the appraisal is likely to be. If there are plenty of nearby homes with similar size, age, condition, and location, the appraiser can make a more precise valuation. But when good comps are harder to find, like with rural or highly unique homes, the appraiser may need to look further out or compare the home to properties that are less similar. That can make the valuation less certain and may sometimes lead to a more conservative appraised value.

11. Market conditions

The broader housing market can also affect a home’s appraised value, even when nothing about the home itself has changed. Appraisers consider national and local trends like buyer demand, available inventory, mortgage interest rates, and the overall economy. In today’s market, home prices are still rising, but at a slower pace.

Those conditions can move appraisals higher or lower. When demand is strong and there aren’t many homes for sale, values can rise. When higher rates or economic uncertainty make homes less affordable, prices may flatten or fall. Timing can matter, too: spring and summer usually bring more buyer activity, while slower seasons can see more conservative prices. This push and pull is what creates a buyer’s market or seller’s market, and it can influence how appraisers value similar homes.

How to handle 6 major issues that can hurt appraisals

Some valuation factors are outside your control. These six aren’t – or at least, not entirely. Here's what tends to hurt home appraisals the most and what you can do about it.

1. Poor curb appeal

How it hurts the appraisal: Overgrown landscaping, dead grass, dirty or peeling exteriors, broken gutters, clutter in the yard, dated outdoor lighting, and debris from unfinished exterior projects.

What to do: Start with cleanup: mow, edge, trim, and remove any visible clutter or debris. Power wash the driveway, siding, and walkways. Add simple, low-cost improvements like fresh mulch, potted plants near the entrance, or new house numbers. Repaint or touch up the front door. Replacing a worn front door can actually recover its full cost at resale, according to the National Association of REALTOR's^® 2025 Remodeling Impact Report, and it makes a strong first impression on appraisers

2. Unique or rural homes

How it hurts the appraisal: One-of-a-kind homes and rural properties are often missing nearby comparable sales. Without solid comps, appraisers have to work with less data, which can result in more conservative (lower) valuations. Rural homes may also be assessed against a perceived lack of nearby amenities, services, and neighbors, which are factors that can reduce buyer demand.

What to do: Document everything that supports your home's value: any recent sales within your region, upgrades you've made, and comparable homes that might have sold in adjacent markets. Working with a local real estate agent who knows your specific market well can help you identify the strongest available comps to share with the appraiser.

3. Neglected or deferred maintenance

How it hurts the appraisal: Unfinished projects, visible disrepair, or ongoing maintenance issues signal to appraisers and future buyers that the home needs work. Water stains on ceilings (like from roof leaks), cracked drywall, broken handrails or safety features, rotting wood, and peeling exterior paint all fall into this category.

What to do: Before an appraisal, walk through your home with fresh eyes. Address anything that's visibly broken or incomplete. Prioritize repairs that are obvious to the eye or touch, especially in kitchens, bathrooms, and the exterior. Home improvement loans can help fund deferred work before listing or refinancing.

4. Outdated systems or interiors

How it hurts the appraisal: Old or broken appliances, outdated kitchens and bathrooms, dated fixtures, and aging major systems (HVAC, water heater, electrical panel) can all drag down value, especially when comparable homes in the area have been updated.

What to do: Full renovations aren't always worth it. Focus on updates with strong return on investment. NAR's 2025 Remodeling Impact Report found that refinishing hardwood floors recovered an estimated 147% of costs at resale, and installing new hardwood floors recovered about 118%. Smaller updates, such as new hardware, fresh paint in neutral tones, updated light fixtures, are cost-effective ways to increase home value without overspending.

5. Pest damage or infestation

How it hurts the appraisal: Evidence of termites, rodents, carpenter ants, gophers, or other pests (including damage they've left behind) can majorly hurt an appraisal. Gnawed wood, termite droppings, mud tubes, or soft spots in flooring and walls are all issues that an appraiser will flag.

What to do: If you suspect any pest activity, schedule a professional pest inspection before the appraisal. Treat any active infestations and repair the physical damage. An appraiser will note both the presence and aftereffects of pests. Keep documentation of any treatments and repairs to show the appraiser.

6. Personalized features or renovations

How it hurts the appraisal: Renovations that reflect the owner's taste rather than broad buyer appeal can actually hurt an appraisal. Bold paint colors, elaborate murals, unusual built-ins, themed rooms, or significant structural changes that reduce versatility all fall into this category. The same goes for over-improvement; adding a fourth bathroom to a three-bedroom ranch, for instance, when no comparable home in the neighborhood has one.

What to do: Before an appraisal, neutralize where you can. Repainting in soft, neutral tones is inexpensive and one of the easiest ways to broaden appeal. For more unusual features, the fix depends on the extent of the work. Sometimes it's worth restoring to a more standard state; other times, the best strategy is simply documenting the quality of the craftsmanship and letting the appraiser assess.

How to prepare for a home appraisal

While you can’t control everything that helps or hurts a home appraisal, you can take steps to present your home in its best light and prepare to provide details about its condition and upgrades.

• Research market conditions and comps: Look at recent nearby sales before the appraiser arrives. Knowing what comparable homes have sold for and looking at housing market predictions gives you context for the outcome and can help you spot any errors in the final report.
• Know your neighborhood: Note any recent improvements nearby, like new construction, school rezoning, or new amenities that might positively affect the home’s value. Also be aware of anything that could be concerning, like nearby foreclosures.
• Thoroughly inspect your home: Walk through every room, the attic, basement, garage, and exterior with the mindset of a stranger seeing it for the first time. Take notes on anything that’s broken, stained, or incomplete.
• Clean and declutter: Appraisers are trained to look past mess, but a clean, accessible home makes their job easier and indicates basic upkeep. Clear pathways to all rooms, closets, attic access points, and mechanical systems.
• Make small repairs: Fix what's fixable before the visit. Leaky faucets, broken light switches, cracked caulk, stuck doors, and broken window locks are all things an appraiser might notice, and they're all straightforward to address.
• Make your home accessible: Ensure the appraiser can access every part of the property, including the crawl space, HVAC unit, electrical panel, and water heater. A room or system the appraiser can't access may be noted as a limitation in the report.
• Document all upgrades: Prepare a list of improvements you've made, with approximate dates and costs. Include permits for any permitted work. This gives the appraiser concrete evidence of value-adds they might otherwise underestimate.
• Plan to be available: You don't need to hover, but being present (or having someone available) to answer questions can help the appraiser get accurate information. For a refinance, review the refinance appraisal checklist ahead of time.

What to do if your appraisal is low

A low appraisal can be frustrating and surprising, especially after a buyer and seller have already agreed on a price. Because lenders won't allow you to borrow more than the appraised value, a low appraisal can hold up or even end a transaction. That said, you have options:

• Cover the gap in cash: The buyer can make up the difference between the appraised value and purchase price out of pocket. This works for buyers who can afford a larger down payment and are motivated to move forward. A home affordability calculator can help you determine the right down payment.
• Renegotiate the price: The buyer and seller can agree to a lower sale price that better reflects the appraised value. While not ideal for the seller, it keeps the sale going.
• Challenge the appraisal: Buyers or sellers can request a formal review and submit additional comparable sales that support a higher value. Lenders aren't required to accept a new appraisal, but a well-documented challenge can sometimes change the outcome.
• Walk away: Most purchase contracts include an appraisal contingency that allows buyers to exit the deal if the appraisal comes in too low. Sometimes that's the right move.

FAQ

Do home renovations always help a home appraisal?

No, renovations don’t always increase a home’s appraised value. The updates most likely to help are the ones that match what buyers in your market want and don’t push the home far above nearby comparable sales. Over-improving a home relative to the neighborhood can mean spending more than you’ll get back in the appraisal, while smaller, strategic updates, like refinishing hardwood floors or replacing a front door, have a good chance at offering stronger returns than large-scale remodels.

What are some things that don’t affect appraisal value?

Some general items usually won’t affect your home’s appraised value, including everyday clutter or mess, furniture and decor, personal belongings, and minor cosmetic imperfections that don’t suggest deferred maintenance or bigger condition issues. Appraisers are more focused on the home’s size, condition, location, systems, upgrades, and comparable sales than on how the home is staged or decorated.

How does a home appraisal differ from an inspection?

An appraisal and home inspection often get confused, but serve two distinct purposes. A home appraisal tells the lender what the home is worth. A home inspection tells the buyer what condition the home is in. Appraisers may point out obvious problems that could affect value, but they aren’t checking every system or repair issue in detail. That’s the inspector’s job.

How much does a home appraisal cost?

A single-family home appraisal costs about $350–$600 on average, but the price can vary based on the home’s size, location, loan type, and how complex the property is to evaluate, as well as the local market. FHA and VA appraisals² often cost more because they have additional requirements that need to be met. In most cases, the buyer pays the appraisal fee as part of their closing costs.

The bottom line: Know what hurts a home appraisal and what helps it

A home appraisal looks at many factors, including the home’s condition, curb appeal, size, layout, major systems, upgrades, location, market conditions, and recent comparable sales. Things like deferred maintenance, outdated systems, poor-quality renovations, limited comps, or a slower market can all lower the final appraised value.

The more you understand what appraisers are looking for, the easier it is to prepare and avoid surprises in valuation. Sellers and homeowners looking to refinance can make repairs, document upgrades, and present the home as well as possible before the appraisal. Buyers can use the appraisal to understand whether the home’s value supports the purchase price, especially in a changing market.

¹ Refinancing may increase finance charges over the life of the loan.

²Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.