Overview

A mortgage appraisal is one of the key steps in most refinance transactions. Lenders use the appraiser’s conclusion of value to confirm the collateral for the new loan and to set maximum loan amounts (LTV limits). Preparing well for the appraisal doesn’t mean staging your home like a model house — it means presenting accurate information, fixing obvious defects, and documenting upgrades so the appraiser can make a complete, accurate valuation.

Authoritative resources such as the Consumer Financial Protection Bureau (CFPB) explain the lender’s role in selecting the appraiser and why appraisals matter (see consumerfinance.gov). Fannie Mae and FHA also publish appraisal guidance used by many lenders; check their sites for program-specific rules.

What an appraiser looks for

  • Property size and functional layout (square footage, bedroom/bath counts).
  • Condition and quality: structural issues, deferred maintenance, visible repairs.
  • Functional updates: kitchen and bath condition, major systems (roof, HVAC, plumbing).
  • Site and curb appeal: landscaping, exterior condition, roofline, driveway.
  • Comparable sales (“comps”) in the local market — typically recent sales within the neighborhood.
  • Property-specific features that affect market value (finished basement, garage, acreage).

Appraisers follow standards such as the Uniform Appraisal Dataset (UAD) and typically use the sales comparison approach for single-family homes. For some properties or refinancing programs, lenders may accept automated valuations or desktop appraisals; however, a physical inspection remains common for many loans.

How to prepare: step-by-step checklist

  1. Gather documentation
  • Building permits and completion paperwork for major renovations.
  • Receipts for significant upgrades (new roof, HVAC, kitchen remodel).
  • Recent property tax assessment and homeowner association (HOA) documents if applicable.
  • A short list of 3–5 comparable recent sales you believe are most similar, with addresses and sale prices. (Appraisers will do their own research, but a homeowner-supplied list can highlight relevant comps.)
  1. Make obvious repairs and safety fixes
  • Repair leaking faucets, broken windows, torn screens, and interior hazards.
  • Replace burned-out light bulbs and ensure systems (heat/AC) are operational during inspection.
  1. Clean, declutter, and improve curb appeal
  • Clean interior surfaces, remove personal clutter so rooms read for scale.
  • Mow the lawn, trim shrubs, weed flowerbeds, and clear walkways.
  • Ensure exterior entrances are clear and the home’s key features are visible from the curb.
  1. Highlight value-adding features
  • Leave manuals/receipts for appliances and systems in a folder labeled “Appraisal Documents.”
  • Provide photos or a short summary of recent upgrades (year completed and cost range).
  1. Offer access and be present (briefly)
  • Confirm the appraiser can access mechanical systems, attics, and exterior areas.
  • Avoid guiding the appraiser room-by-room; appraisers are independent professionals. A brief, polite introduction and pointing out where permits or receipts are kept is appropriate.
  1. Understand program and timing differences
  • Some refinances (VA IRRRL, FHA streamline, some lender-specific programs) may waive an interior appraisal or accept an automated valuation model (AVM). Confirm with your lender ahead of time.

Costs, timing and appraisal types

  • Typical appraisal cost (paid by borrower at refinancing) varies by market and property complexity; common ranges in 2024–2025 were approximately $400–$800 for a standard single-family home, but can be higher for complex or rural properties. Check local lender quotes.
  • Turnaround: appraisals are usually ordered after underwriting starts and often return within 3–10 business days, though busy markets can take longer.
  • Types: full interior/exterior appraisal, drive-by/exterior-only appraisal, desktop appraisal (no visit), and AVM. Lenders choose the type based on program and risk profile.

For additional detail about fees tied to refinancing — including appraisal fees — see the guide “Refinancing Fees You Might Overlook: Appraisal, Title, and Third-Party Costs” on our site.

What to do if the appraisal is low

  • Review the appraisal report carefully: check factual errors such as incorrect bedroom/bath counts, square footage, or omitted upgrades. An appraiser can consider corrections.
  • Ask the lender about an appraisal reconsideration or review. Lenders may request a review or submit additional comps to the appraiser.
  • Consider a second appraisal if the lender allows or if there is strong evidence the first report missed significant comps or upgrades. A second opinion can sometimes change the underwriting decision.
  • Negotiate with the lender or seller (if a purchase-refinance hybrid): options include adjusting the loan amount, bringing funds to closing to cover the shortfall, or withdrawing the refinance application and shopping other lenders.

Many borrowers successfully improved outcomes by supplying clear documentation and comparable sales; in my practice, providing permits and receipts for a recent kitchen refresh plus three nearby comps often resolved small valuation gaps.

Appraisal alternatives and waivers

Lenders sometimes use appraisal waivers, AVMs, or desktop appraisals for low-risk refinances. These alternatives can lower cost and speed up closing, but they require the lender’s approval. Program rules vary:

  • Fannie Mae and Freddie Mac offer appraisal waiver programs when the loan file meets certain criteria.
  • FHA and VA have specific rules on appraisals and when waivers apply.

Confirm with your lender whether you qualify for a waiver and whether relying on an AVM is acceptable for your refinance goals.

Common mistakes to avoid

  • Leaving obvious safety or access issues unaddressed (locked mechanical rooms, broken steps).
  • Assuming the appraiser will know about unpermitted work — always provide permits and documentation.
  • Over-improving immediately before an appraisal in ways that are out of character for the neighborhood; high-end finishes do not raise market value beyond neighborhood comparables.
  • Panicking after a low appraisal; first confirm factual accuracy before taking expensive steps.

Practical examples (illustrative)

  • Example A: A homeowner fixed a sagging handrail and replaced a badly damaged roof shingle section before the appraiser’s visit. The appraiser noted the corrected safety issue and the improved roof condition, contributing to a valuation that met the lender’s LTV thresholds.

  • Example B: A client gathered invoices for a permitted bathroom remodel completed two years earlier and supplied three nearby comps showing similar renovated homes. The appraiser incorporated that evidence and adjusted the value upward by a modest, supportable amount. (This is consistent with typical appraiser practice; individual results vary.)

Quick checklist to leave for the appraiser

  • Folder labeled “Appraisal Documents”: permits, receipts, appliance manuals.
  • List of 3–5 local comparable sales with addresses and sale dates.
  • Contact info for HOA or property management (if applicable).
  • Short note with any unusual features or recent major repairs.

Further reading and internal resources

Authoritative sources

  • Consumer Financial Protection Bureau (CFPB), “Appraisals and the mortgage process” — consumerfinance.gov
  • Fannie Mae Selling Guide — fanniemae.com (search appraisal waiver and UAD guidance)
  • U.S. Department of Housing and Urban Development (HUD) / FHA appraisal policy — hud.gov

Professional disclaimer

This article is educational and summarizes typical appraisal practices for refinance transactions as of 2025. It is not personalized legal, tax, or mortgage advice. Contact a licensed mortgage professional, appraiser, or attorney to discuss your specific situation.

Bottom line

Thoughtful preparation — accurate documentation, modest repairs, clear access, and a clean, functional presentation — reduces the risk of surprises and can help the appraiser produce a fair market value. That value directly affects your refinance options, so invest a few hours and dollars now to avoid larger costs later.