If you require a home appraisal, preparation will be important. When buying or selling a home, a home appraisal determines whether the sale price of the home is more, less, or similar to the market value.
It is required by mortgage lenders, primarily as a security measure so they can ensure they’re not loaning you more than the house is worth. Since the home serves as the borrower’s collateral, the accuracy of the appraisal matters significantly.
Likewise, when a homeowner is refinancing their existing mortgage, the lender will have the home appraised to confirm its market value before extending a new loan.
We have put together a list of recommendations for homebuyers and sellers when preparing for a home appraisal:
For Homebuyers:
- Know your contingencies before you sign an Offer to Purchase. If you are buying with a mortgage, an appraisal will be ordered by the mortgage company, and this will happen during the mortgage contingency. Occasionally with a cash purchase an appraisal contingency can be added.This could allow you to walk away from the deal if the appraisal turns out lower than expected.
- A competitive market can make it tempting to offer more than a house is worth. Don’t go overboard if you don’t have the extra cash to cover the difference between a higher offer and the actual appraised value.
- Accept that the outcome is out of your control: As the buyer, you don’t have much, or any, influence over the results of the appraisal.
For Sellers:
- Make a list of improvements to maximize credit for renovations or repairs you’ve done by providing details about work completed on the property. Tell the appraiser what you did (i.e., added a garage), when you did it, how much you spent, and provide photos and receipts if possible.
- Clean and declutter. If the appraiser is coming to your home, put in some effort to make it look its best by tidying up and stashing clutter out of sight. Maximize your curb appeal by mowing the lawn, raking leaves and cleaning up flower beds.
Want to see the 4 surprising factors that can affect a home appraisal? Read our other blog article here.
Read more about home appraisals in our April 2025 newsletter here and our video guide below with a step-by-step overview of the home appraisal process.