Whether you’re selling a cozy bungalow or a luxury estate, sooner or later you’ll hear this question: “What did the home appraise for?”
Appraisals are one of the most important (and often misunderstood) parts of a real estate transaction. Let’s break down how they work, what impacts value, and what happens when a home doesn’t appraise the way you expected.
What Is a Real Estate Appraisal?
An appraisal is an independent, professional opinion of a home’s market value—usually required by a lender to ensure the home is worth what a buyer has offered. It helps protect both the buyer and the lender from overpaying.
The appraiser’s job? Evaluate the home’s condition, size, location, and features, and compare it to recent sales of similar properties in the area. The final report provides an estimated value based on current market conditions.
How Does an Appraiser Determine Value?
Appraisers don’t pull numbers out of thin air. They follow a process that includes:
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Visiting the property: Measuring square footage, checking condition, noting upgrades or repairs needed.
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Analyzing comparable sales: Looking at homes nearby that have sold recently (usually within the last 6-12 months).
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Evaluating the market: Considering supply, demand, and local trends that might impact value.
Appraisers are neutral. Their goal is to provide a fair assessment—not to help or hurt the sale.
What Brings Value to a Home?
Certain features can add value in an appraisal:
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Updated kitchens and bathrooms
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Quality construction and materials
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Energy-efficient upgrades (windows, HVAC, insulation)
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Outdoor living spaces (covered patios, pools, outdoor kitchens)
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Well-maintained landscaping and curb appeal
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Additional living spaces (bonus rooms, finished basements, guest houses)
Pro tip: Cleanliness and staging don’t directly affect appraised value—but they help the appraiser see the home in its best light.
What Happens If a Home Doesn’t Appraise?
Here’s where things get interesting. If the home appraises below the contract price, lenders won’t finance the gap. At that point, a few things can happen:
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The buyer can bring more cash to cover the difference.
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The seller can lower the price to match the appraised value.
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Both parties can negotiate a middle ground.
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The deal can fall through if no agreement is reached.
This is where having the right Realtor matters. At The Agency Oklahoma, we help you price strategically and negotiate effectively, so surprises are minimized and solutions are found.
The Agency Advantage
At The Agency Oklahoma, we combine local expertise with the power of a truly global brand. The Agency has over 140 offices worldwide, offering unmatched reach and resources for our clients. From Nichols Hills to Malibu to Mexico City, we provide luxury-level marketing, data-driven pricing strategies, and negotiation skills that protect your interests every step of the way.
Whether your home is $200,000 or $20 million, we believe luxury is an experience, not a price point. Our team is here to guide you through every stage of your real estate journey—including appraisals.
Ready to Get Started?
If you have questions about appraisals, pricing, or preparing your home for sale, I’m here to help.
Wyatt Poindexter
The Agency Oklahoma
📞 405-417-5466
✉️ [email protected]
🌐 www.WyattPoindexter.com
Let’s make your next move your best move.
