- A high appraisal can reduce your interest rate and monthly payments and allow you to tap into more equity.
- Making minor repairs and keeping up with regular maintenance can offer some of the biggest bang for your buck.
- Ensure your appraiser is aware of the features of your home that make it stand out from other similar properties.
Getting a high home appraisal is one of the best ways to improve your refinance terms. A strong valuation can reduce your interest rate, eliminate mortgage insurance, and unlock more equity if you’re looking to cash out.
This refinance appraisal checklist shares 18 actionable tips to help you present your home in its best light and boost your chances of receiving a favorable valuation.
The Value of a High Appraisal When Refinancing
Your home appraisal plays a vital role in the refinancing process. Whether you’re refinancing to reduce your rate, lower your monthly payment, or cash out equity, your appraisal results will directly impact the terms of your new loan.
A high appraisal can lead to:
- A better loan-to-value ratio: Your LTV ratio directly affects your interest rate. The more your home is worth relative to what you’re borrowing, the less risky the loan and the lower the rate you’ll be offered.
- Reduced or eliminated mortgage insurance: Lenders require PMI on conventional loans with less than 20% equity. A higher appraisal makes it easier to cross that threshold. Even if you can’t eliminate it entirely, more equity means lower PMI premiums.
- More equity to cash out: For a cash-out refinance, a higher valuation means more available equity. Most lenders cap cash-out loans at 80% LTV, so a $10,000 higher appraisal could put an additional $8,000 in your pocket.
Before the Appraisal
Here are steps you can take before your appraiser visits to positively influence your valuation.
Note: These tips can help present your home in the best possible condition, but the final appraised value is determined by a licensed appraiser using independent judgment and market data, in compliance with federal regulations and appraisal standards.
1. Make Small Repairs and Fix Maintenance Issues
An appraisal is not a full inspection, but the appraiser will assess the property’s overall condition and verify that critical systems are functioning. Address simple maintenance issues before the visit, including:
- Test major appliances to confirm they work
- Check that faucets and drains function and don’t leak
- Clean and service heating and cooling systems
- Replace damaged window screens
- Make sure windows open, close, and seal properly
- Replace burnt-out lightbulbs to confirm receptacles work
- Tighten loose hardware and lubricate squeaky hinges
2. Boost Your Home’s Curb Appeal
The exterior is the first thing an appraiser sees. A positive first impression can set the tone for the entire visit. Steps to improve curb appeal include:
- Mow the lawn, trim near fences and structures, and edge along sidewalks and driveways
- Prune overgrown trees and bushes
- Add fresh mulch to flowerbeds
- Check that fencing is uniform and in good condition
- Remove debris and repair damaged gutters
- Fix any missing, broken, or cracked siding
- Scrape and repaint chipped paint
- Replace missing shingles or damaged roofing
- Pressure wash driveways and walkways
3. Complete Planned Renovations
If you’ve been planning upgrades like an updated kitchen, finished basement, or new bathroom, completing them before your appraisal may be worth it. Just keep in mind that not all renovations will add value equal to their cost, so prioritize those you’d be completing soon anyway.
Caveat: Overly customized renovations, such as converting two bedrooms into a single large suite, can sometimes hurt your value by reducing bedroom count. It may be better to hold off on those until after your refinance.
4. Declutter and Deep Clean
A lived-in home won’t technically hurt your appraisal, but a clean, uncluttered space helps appraisers see it more clearly. Removing excess furniture and personal items makes rooms feel larger. A thorough cleaning, especially in kitchens and bathrooms, reinforces the impression that the home is well-maintained.
5. Ensure All Rooms Are Accessible
The appraiser will need to walk through your entire home and verify its condition, including basements, attics, sheds, and crawl spaces. Make sure everything is accessible. If you have pets, secure or kennel them so the appraiser can move freely through all areas.
6. Document Your Home’s Square Footage
Square footage directly affects value. If you’ve added square footage or believe the tax roll doesn’t reflect your home’s actual dimensions, document each area carefully, including living space, garages, and outbuildings. Have permits and blueprints ready for any additions, as appraisers may not count unpermitted space.
7. Improve Energy Efficiency
Energy-efficient improvements can increase appraised value and marketability. Consider upgrades like:
- Smart thermostats
- New insulation
- Energy-efficient appliances
- Solar panels
- Energy Star-rated doors and windows
- Low-flow water fixtures
- LED lighting
Some lenders offer special refinance programs for energy-efficient homes, mention any upgrades to your loan officer.
8. Know Your Local Market Conditions
Recent comparable sales in your neighborhood have the biggest impact on your appraised value. If nearby homes have been selling at strong prices, your appraisal is more likely to come in favorably. Monitoring market conditions can help you decide when it makes sense to refinance.
9. Refresh Paint and Flooring
A fresh coat of paint inside and out can make a home feel newer and better maintained. Refreshed flooring doesn’t have to mean new hardwood; deep cleaning carpet, polishing wood floors, or replacing heavily worn sections can make a meaningful difference at relatively low cost.
10. Check for Termite Damage
Visible termite damage or active infestations can negatively impact your valuation and, in some cases, may prevent you from qualifying for a loan entirely. If you’re in a termite-prone area, check the foundation, basements, and wooden structures like porches and decks before the appraisal. Address any issues in advance.
11. Know the Requirements for Your Loan Type
Government-backed refinance programs, FHA, VA, and USDA, require that the home meet minimum property standards. Issues like a leaking roof or a non-functional heating system may need to be resolved before the loan can proceed. Ask your lender about your specific program’s requirements, and consider whether a conventional refinance might be a better fit if your home has known issues.
The Day of the Appraisal
It’s not too late to make a difference on appraisal day. Here’s how to make the most of it.
12. Be Present and Prepared
Unlike during a purchase, you’re allowed to be present for a refinance appraisal. Use that opportunity wisely:
- Be available to answer questions, but give the appraiser space to work
- Have a summary of upgrades with receipts, invoices, and permits
- Print out recent comparable sales from your neighborhood
- Make sure all doors and gates are unlocked, and pets are secured
Note: Some appraisers will welcome conversation and your documentation; others prefer to work independently. Either way, being overprepared is always better than being underprepared.
13. Keep the Home Well Lit
Turn on all the lights, open blinds, and make the home as bright as possible. Good lighting makes the space more inviting, highlights features, and makes it easier for the appraiser to take quality photographs for their report.
14. Point Out Unique Features and Improvements
Your home’s value is based on how it compares to recent sales in the area. Point out any features that set it apart, including:
- A recently replaced roof, especially with premium materials
- Energy-efficient upgrades like smart thermostats or Energy Star windows
- A new or renovated deck or porch
- Resurfaced pool or pool deck
- Added insulation in areas not easily visible
15. Present Recent Comparable Sales (Comps)
Your appraiser will have already researched comps, but it doesn’t hurt to have printed copies available. When presenting them, highlight areas where your property matches or exceeds those sales. The goal is to make it easy for the appraiser to see the comparison in your favor.
16. Highlight Your Neighborhood’s Strengths
Appraisers cover large market areas and may not know your neighborhood as well as you do. Share relevant context: nearby parks, recent community improvements, or other factors that make the area desirable. This helps ensure comps are pulled from neighborhoods comparable in character and amenities.
After the Appraisal
Once the appraiser has completed their visit and research, your lender will provide a copy of the report. If the valuation came in lower than expected, you may still have options.
17. Check the Report for Errors
Appraisers can make mistakes, miscalculations, use inaccurate data, select poorly, or make other errors that affect the final number. Review the report carefully. If you find errors that appear to have affected your valuation, point them out to your lender and ask whether a reconsideration of value (ROV) is appropriate.
18. Ask for a Second Appraisal
If you believe the initial valuation is inaccurate but don’t have sufficient grounds for an ROV, you may be able to request a second appraisal. Not all lenders allow this, and some loan programs don’t permit it either. If it is granted, you’ll be responsible for the additional appraisal fee.
What If Your Appraisal Is Low?
Even with thorough preparation, there’s no guarantee your appraisal will come in where you need it. If the valuation is too low for your current lender to approve the loan, or the terms offered don’t meet your goals, it may be worth applying with a different lender. Appraisals can vary, and lenders use different programs with different requirements.
Ready to get started? Begin your refinance application with Refi.com today.
