What Appraisers Look for (and What They Ignore)

Appraisals can feel mysterious and stressful, especially when a deal is on the line. Many homeowners assume appraisers judge homes the same way buyers do. In reality, appraisers follow strict guidelines that often surprise both buyers and sellers.

Here’s what appraisers truly focus on, and what they largely ignore.

What Appraisers Look For

1. Comparable Sales

The most important factor is recent, nearby comparable sales. Appraisers analyze homes similar in size, layout, location, and condition that sold recently.

If comps don’t support the contract price, even a beautiful home can appraise lower.

2. Location and Market Trends

Neighborhood quality, school districts, and overall market conditions matter. Appraisers look at whether values are rising, stable, or declining.

They care about where the home is as much as what it is.

3. Square Footage and Layout

Gross living area is measured carefully. Functional layouts typically appraise better than awkward or inefficient designs, even if total square footage is similar.

4. Condition and Major Updates

Appraisers note the condition of the home and any significant improvements like:

• Roof replacement

• HVAC upgrades

• Updated electrical or plumbing

These affect longevity and risk, not cosmetic appeal.

5. Health and Safety Issues

Any safety concerns, code violations, or structural problems can impact value or lender approval. This is especially important for financed buyers.

What Appraisers Mostly Ignore

6. Décor and Personal Style

Paint colors, furniture, and décor choices don’t add value. A beautifully staged home may sell faster, but staging alone doesn’t raise the appraisal.

7. Expensive Personal Upgrades

High-end fixtures or custom finishes don’t always translate dollar-for-dollar in appraisals unless they are common for the area.

8. Emotional Value

Memories, personal attachments, or how much a seller needs a certain price don’t factor into valuation.

9. Online Estimates

Automated home values are not used by appraisers. Human analysis based on verified data is what matters.

Why This Matters in Real Transactions

Understanding appraisal logic helps sellers price realistically and helps buyers avoid surprises. In markets like Marin County, where homes are highly unique, appraisal gaps can occur if pricing leans too heavily on emotion or rarity.

Final Thoughts

Appraisers focus on facts, data, and risk, not feelings or finishes. Homes that align with local comps and market conditions tend to appraise smoothly. Homes priced ahead of the data may still sell, but appraisal strategy becomes critical.