A home’s value can make or break a real estate deal—and the person who determines that value is the appraiser. If you’ve ever applied for a mortgage or tried to refinance your property, you’ve encountered a real estate appraisal. But what actually happens during that process? What does the appraiser evaluate to determine the market value of your home?

In this blog, we’ll break down exactly what an appraiser looks for—inside the home, outside, and in the surrounding neighborhood. Whether you’re preparing for an appraisal or just want to understand the process better, this guide will give you a clear picture of what to expect.

The Role of the Appraiser

Before diving into the checklist, it’s helpful to understand the appraiser’s purpose. A real estate appraiser provides an unbiased, professional opinion of a property’s fair market value. They are typically hired by lenders, but their duty is to assess the value objectively—not to serve the interests of the buyer, seller, or bank.

Appraisers are trained professionals licensed by the state. They follow standardized processes and rely on guidelines provided by organizations such as the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP).

Key Areas Appraisers Examine

Appraisers use a combination of in-person inspection, local market data, and comparable sales to determine a home’s value. Here’s what they’re actually looking for:

1. The Property’s General Characteristics

At the start of the inspection, appraisers take note of basic property data:

• Type of property: single-family home, condo, townhouse, or multi-family unit
• Year built and whether the home has been updated or remodeled
• Square footage (above grade living area and finished basement areas)
• Lot size
• Number of bedrooms and bathrooms
• Garage size and type
• Construction quality and materials used

These details create the foundational profile of the property and set a baseline for comparison with other homes in the area.

2. Exterior Condition and Features

Curb appeal counts for more than just first impressions—it can actually influence appraisal value. Appraisers examine:

• Roof condition: age, material, and signs of wear or damage
• Foundation integrity: visible cracks, settling, or grading issues
• Siding and paint: condition and appearance
• Windows and doors: energy efficiency and proper function
• Landscaping: quality, maintenance, and usability of the yard
• Fencing, patios, porches, or decks
• Driveway and walkways

Any exterior upgrades—such as new windows, a recently replaced roof, or an added patio—can positively affect the value.

3. Interior Condition and Quality

Once inside, the appraiser takes a thorough look at the layout, design, and condition of the home’s interior. Here’s what they assess:

Layout and Functionality

• Logical flow from room to room
• Open vs. closed floor plan
• Bedroom and bathroom locations
• Adequate storage and closet space

Condition of Interior Elements

• Flooring (material, wear and tear)
• Walls and ceilings (paint, drywall, water damage)
• Doors and trim work
• Lighting fixtures
• Cabinetry and countertops

Appliances and Fixtures

While not all appliances are factored into valuation (unless they’re built-in), their presence and condition may be noted. Updated, modern fixtures can improve the perceived quality of the home.

Overall Cleanliness and Maintenance

Though cosmetic cleanliness doesn’t directly change value, a well-maintained home signals pride of ownership and suggests fewer hidden issues.

4. Upgrades, Renovations, and Improvements

Real estate appraisals place strong emphasis on improvements that increase home value—especially those that are permanent, permitted, and functional.

Some upgrades that appraisers typically value include:

• Kitchen remodels (new countertops, cabinets, or layout)
• Bathroom updates (new vanities, showers, or plumbing)
• Energy-efficient windows or insulation
• New HVAC, plumbing, or electrical systems
• Finished basements or attics
• Additions (extra bedrooms, sunrooms, garages)

It’s important to note that not all renovations yield the same return on investment. For example, a luxury kitchen renovation might not fully translate into added value if the neighborhood doesn’t support that price range.

Tip: Always provide the appraiser with a written list of improvements, including dates, costs, and warranty information if available.

5. Comparable Sales in the Area (Comps)

One of the most influential factors in an appraisal is the analysis of recent comparable sales—often referred to as “comps.” Appraisers compare the subject property to at least three similar homes that have sold in the past 3–6 months within the same area.

Here’s what they evaluate in comps:

• Sale price
• Square footage
• Year built
• Lot size
• Condition
• Proximity to the subject property
• Special features like pools or solar panels

If your home differs from the comps in certain areas (for example, it has a third bathroom or a larger backyard), the appraiser will make adjustments to account for those differences.

6. The Neighborhood and Location

Location is one of the most powerful factors influencing property value. Appraisers evaluate the neighborhood based on:

• School district quality
• Proximity to amenities like parks, restaurants, or shopping centers
• Crime rates and safety
• Walkability and public transportation
• Zoning regulations or planned developments
• Overall neighborhood appeal

If the area is in a transitional or declining phase, that may be reflected in the final value—even if the house itself is in excellent condition.

7. Functional Obsolescence or Unique Layouts

Some homes have odd features that may negatively impact appraisal value, such as:

• Bedrooms without closets or windows
• Bathrooms located in inconvenient areas
• Excessive staircases in small homes
• Extremely dated layouts that don’t meet modern expectations

Appraisers recognize when a home’s functionality may limit its appeal—even if square footage and quality are otherwise strong.

What Appraisers Do NOT Consider

Contrary to popular belief, appraisers do not factor in:

• Personal decor or style (e.g., wallpaper, paint color, furnishings)
• Homeowner’s emotional attachment or financial needs
• Zillow or other online estimates
• What a seller “put into” a renovation

Their focus is strictly on the market value based on data, not subjective preferences or perceived investment.

How to Help the Appraiser (Without Interfering)

Although you cannot influence the appraiser’s decision, you can set the stage for a favorable impression:

• Clean and declutter every room
• Make minor repairs before the visit
• Provide a fact sheet listing all upgrades and maintenance
• Be present to answer questions, but do not hover or pressure
• Provide recent, relevant comps (especially if the neighborhood is unique)

The goal is to provide helpful information without trying to steer the outcome.

What If the Appraised Value Is Lower Than Expected?

Low appraisals can delay or derail a sale. If the value comes in below the agreed purchase price:

• The buyer may have to bring more money to the table
• The seller may have to reduce the price
• The buyer and seller may meet in the middle
• The buyer may walk away if an appraisal contingency is in place

In some cases, a reconsideration of value or a second appraisal can be requested if there’s a compelling reason to believe the value is incorrect.

Conclusion

A real estate appraisal isn’t just a box to check—it’s a critical piece of any property transaction. Understanding what an appraiser looks for helps sellers prepare, helps buyers make informed offers, and helps homeowners know how their investment stacks up in the current market.

By focusing on property condition, functional layout, upgrades, neighborhood appeal, and comparable sales, appraisers ensure that their valuation reflects true market conditions—not personal opinions or emotional attachment.

Coming Up Next:

Ever wonder what happens if your home doesn’t appraise for the offer price? In our next blog, we’ll explore what happens if an appraisal is lower than an offer and how buyers, sellers, and lenders can navigate that challenge.