Getting Ready for the Appraiser: What Sellers Can (and Can't) Do
What You’ll Learn
- Who orders the appraisal and who the appraiser works for
- What appraiser independence means for sellers, and what not to do
- How factual information like an upgrade list and permits usually reaches the appraiser
- How to prepare the home for access and which condition issues can lead to required repairs on FHA and VA loans
- What the appraiser looks at, including how comparable sales are chosen
Once you accept an offer from a buyer who is using a mortgage, an appraisal is usually one of the next steps. It can feel like a test of your home's price, and it's natural to want to do everything you can to help it go well.
There is a lot you can do to prepare. There are also a few things you should not do, because appraisals are protected by rules designed to keep them independent. This guide covers the days before the appraiser arrives: who orders the appraisal, what you can share and how, getting the home ready, and what the appraiser looks at. Details vary by lender, loan program and state.
Who Orders the Appraisal, and Who the Appraiser Works For
In a typical financed sale, the appraisal is ordered by the buyer's lender, often through an appraisal management company. The buyer usually pays for it as part of their loan costs. The lender needs an independent opinion of the home's market value before it agrees to lend against it.
That means the appraiser is not working for you, and not working for the buyer either. Their job is to give the lender an unbiased opinion of value based on the property and the market. As the seller, you generally won't choose the appraiser, schedule the appointment directly with them, or receive the report. Your agent will usually coordinate access, and the buyer's side typically gets the report from their lender.
Not every sale includes a full appraisal. Cash buyers may skip one, and in some cases a lender may use a different valuation method. If your buyer is financing, ask your agent whether an appraisal is expected and roughly when. For a broader view of the steps between acceptance and closing, see what to expect after you go under contract.
Appraiser Independence: The Rule That Shapes Everything Else
Federal rules and lender requirements protect appraiser independence. In plain terms, no one involved in the sale may pressure, coerce or try to steer an appraiser toward a particular value. That includes sellers, buyers, agents and loan officers.
Here is what that generally means for you:
- Don't suggest a number. Avoid telling the appraiser what the home "needs" to appraise for, what the contract price is meant to support, or what you think it is worth.
- Don't offer anything of value. No gifts, payments or favors tied to the appraisal.
- Don't contact the appraiser on your own to argue value. Questions and information should go through the channel the lender allows.
- Don't follow the appraiser around making a case. Being polite and available is fine. Lobbying is not.
Appraisers can and do consider accurate, factual information about a property. The difference is between sharing facts through the proper channel and trying to influence the outcome. If you're not sure where that line is, ask your agent before you say or send anything.
Share facts through the proper channel. The value is the appraiser's call.
What You Can Share, and How It Usually Gets There
Many lenders allow factual information about the home to reach the appraiser, as long as it goes through the route they set. Often that means the listing agent passes it to the buyer's agent or the lender, or provides it at the appointment if the lender's rules allow. Lender rules vary, so let your agent handle the logistics.
Information that is often helpful:
- A list of updates and improvements. What was done, roughly when, and by whom. Examples: a newer roof, replaced HVAC system, updated kitchen or bathrooms, new windows or flooring.
- Permits and final inspection records for work that required them.
- Features that are easy to miss, such as a finished basement area, a recently replaced water heater, or owned (not leased) equipment.
- Basic property facts, such as the lot survey or HOA information, if your agent thinks they're useful.
Keep the list factual. Dates, descriptions and documents help. Opinions about value, guesses about what an update "added," or pressure to reach the contract price do not belong on it.
If some past work was done without permits, talk with your agent about how your state's disclosure rules apply before anything is shared. For more on that situation, see unpermitted work when buying or selling a home.
What About Comparable Sales?
Comparable sales, or comps, are recent sales of similar homes nearby. They are usually the core of a residential appraisal. The appraiser chooses which sales to use and decides how to adjust for differences such as size, condition, lot and features.
Some lenders allow agents to share recent sales information, as factual data, through the same channel described above. Whether that is permitted, and how, depends on the lender. Either way, the appraiser is not required to use any sale they are given, and you should not push for particular comps or a particular result.
It can still help you to understand the comps your agent used when pricing the home. Knowing what recent sales looked like can set realistic expectations before appraisal day.
Make the Home Easy to Access
Appraisers generally need to see the whole property, inside and out, and many will measure the home and take photos. Access problems can delay the report or lead to a return visit. Before the appointment:
- Confirm the time with your agent and make sure any lockbox, gate code or alarm instructions are current.
- Open up areas that are usually closed: the attic hatch, crawlspace entry, garage, basement, sheds and other outbuildings.
- Clear paths to the furnace, water heater, electrical panel and other mechanical areas.
- Keep utilities on. Lights, water, heat or cooling, and gas if the home has it. Some loan programs expect systems to be working when the appraiser visits.
- Secure pets or take them out of the home during the visit.
- Unlock rooms and closets that the appraiser may need to see.
You don't usually need to be home. Many sellers step out and let their agent meet the appraiser. If you stay, be courteous, answer factual questions if asked, and give the appraiser room to work.
Repairs and Condition: Where Preparation Can Matter
A clean, tidy home is easier to walk through and photograph, but it generally doesn't change the appraised value much. Appraisers look past clutter and staging to the home's size, layout, features, quality and condition.
Condition is where preparation can matter. Appraisers note visible problems, and on some loan types those notes can turn into required repairs before the loan can close.
FHA and VA loans
FHA and VA loans have minimum property requirements meant to make sure the home is safe, sound and secure. If the appraiser sees an issue that doesn't meet those standards, the lender may require it to be fixed before closing. Items that commonly come up include:
- Peeling or chipping paint, especially in homes built before 1978, when lead-based paint may be a concern
- Missing handrails on stairs, or other obvious safety hazards
- Broken windows or doors that don't lock
- Roof leaks or signs of active water damage
- Utilities or major systems that aren't working
- Exposed or unsafe electrical wiring
Exact standards depend on the program and the lender. If your buyer is using one of these loans, it can make sense to look for small, obvious issues before the appraisal and handle them ahead of time. For background on the loan itself, see the complete guide to FHA loans.
Conventional loans
Conventional appraisals can also call out condition issues, particularly anything that affects safety, soundness or structural integrity. The lender then decides what has to happen before closing. Again, requirements vary.
Finish open projects where you can
A half-finished project, such as a missing floor transition, an uncapped wire or a bathroom without a working fixture, can raise questions about condition or completion. If a quick fix will complete it, consider doing so. If not, be ready to explain the project's status factually through your agent.
Major repairs right before an appraisal are rarely necessary and aren't a way to change the value. If you're unsure whether something is worth addressing, ask your agent, and get quotes from licensed contractors for anything beyond basic upkeep.
What the Appraiser Will Look At
Every appraisal is different, but most residential appraisals consider:
- Size and layout, including gross living area, bedroom and bathroom count
- Quality and condition of construction, finishes and systems
- Updates and features, such as kitchens, baths, garages, outdoor living spaces
- The lot, including size, view and location factors that affect value
- Recent comparable sales and current market conditions
The appraiser then compares your home with the selected sales and makes adjustments for differences. The result is an opinion of value as of the inspection date.
If the Appraisal Comes In Low
Sometimes the appraised value is lower than the contract price. That doesn't automatically end the deal, and there are several ways buyers and sellers handle it. This article stops at appraisal day. For what happens next, see a seller's options after a low appraisal.
Frequently Asked Questions
Can I be home during the appraisal?
Usually, yes. Many sellers choose to step out and let their agent handle access. If you're home, be polite and available, and avoid discussing the price or what you think the home is worth.
Can I give the appraiser a list of upgrades?
Often, factual information like an upgrade list or permits can be shared, but it should go through the channel the lender allows. That is commonly through your listing agent to the buyer's agent or lender. Ask your agent how it works for your sale.
Does cleaning and staging raise the appraised value?
Not much, in most cases. A tidy home is easier to inspect and photograph, but appraisers focus on size, features, quality, condition and comparable sales.
Who pays for the appraisal?
In a typical financed sale, the buyer pays for the appraisal as part of their loan costs. The contract and local practice can affect this, so check with your agent.
Will I get a copy of the appraisal report?
Usually not directly. The report goes to the lender and the buyer. Whether the seller sees it depends on the buyer and the terms of the sale.
The Bottom Line
You can't control the appraised value, and you shouldn't try. What you can do is make the home easy to access, take care of obvious condition issues, and have a factual list of updates and permits ready for your agent to share through the proper channel. Then give the appraiser room to do independent work.
This article is general information, not legal, lending or appraisal advice. Appraisal practices, loan program requirements and communication rules vary by lender, loan program and state. Talk with your real estate agent, a real estate attorney or a licensed loan officer about your specific situation. All loans are subject to lender approval. Advice4Homeownership is a publisher, not a lender.
