Sellers fear low appraisals, but smart planning, solid improvements, and the right agent can help save the deal.

Selling your home can be exciting once you’ve secured a great offer. But what happens if the appraisal comes in lower than expected? It’s a common issue that can put your sale at risk, but it doesn’t have to stop the process. With the right approach and preparation, you can manage it with confidence.

Buyers may be drawn to your home’s design, finishes, or updated kitchen. Appraisers, however, are looking at different criteria to determine value. Their job is to provide an unbiased assessment based on facts, not feelings. Here are the main things they focus on:

• Finished space adds value. The total livable space in your home plays a big role. More finished square footage, whether it’s above or below ground, typically means a higher value.

“The right agent can turn a low appraisal around.”

• Comparisons are based on similar home designs. Appraisers only compare your home to others with a similar structure. A two-story home won’t be measured against single-level houses, even if they’re nearby.

• Long-term upgrades matter. While modern appliances and design trends can influence buyers, appraisers place more value on major updates. A new roof or HVAC system matters more than new countertops when it comes to long-term property value.

These factors help determine whether the agreed sale price aligns with the home's appraised value. Lenders rely on this figure before approving financing. In some cases, financially strong buyers may qualify for a waiver, but it’s not guaranteed.

Low appraisals can be challenged. This can be frustrating, but it’s not a deal-breaker. A skilled real estate agent can help by challenging the report, providing comparable sales, and pointing out important upgrades that the appraiser may have missed.

Understanding how appraisals work gives you a valuable advantage. With a clear understanding of what appraisers look for and guidance from a trusted agent, you’ll be in a strong position to respond effectively and keep your sale on track. 

If you have any questions about the appraisal process or your home’s value, don’t hesitate to reach out at (651) 998-9829 or info@holzgroup.com. We're here to help you get ready, handle any issues, and move forward confidently.