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.
Key Takeaways
- 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.
The Value of a High Appraisal When Refinancing
Your home appraisal plays a vital role in the refinancing process. Whether you’re applying for a refinance to reduce your interest rate, lower your monthly payments, or cash out some of your built-up equity, your appraisal results will directly impact the terms of your new loan.
Why does your appraisal valuation matter so much? A high appraisal can lead to:
- A better loan-to-value ratio: Your loan-to-value (LTV) ratio affects the interest rate that lenders offer. The more your home is worth relative to the amount you’re asking to borrow, the less risky your loan is and the lower the rate you’ll be charged.
- Reduced or eliminated mortgage insurance: Lenders require private mortgage insurance (PMI) on all conventional loans with less than 20% equity. A higher appraisal makes it easier to reach that 80% LTV mark and remove PMI altogether. Even if you aren’t able to hit that goal, more equity translates into lower mortgage insurance premiums.
- More equity to cash out: If you’re applying for a cash-out refinance, a higher valuation directly correlates to more available equity. Most lenders allow you to borrow up to 80% of your home’s value during a cash-out refi. A $10,000 higher appraisal could give you access to an additional $8,000 in funds.
Want to learn more about the importance of a high appraisal and how it can impact your loan? Check out our comprehensive guide to refinance appraisals.
Before the Appraisal
Are you considering refinancing or have already applied with a lender and have your appraiser visit coming up? Here are some steps you can take before your appraisal that can positively impact your valuation.
Note: While these tips may help present your home in the best possible condition, 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 the same as a full inspection. Your appraiser will not deeply dive into every facet of your home. They will, however, assess the property’s overall condition and verify that critical features are functioning as intended.
Prior to your inspection, make necessary minor repairs and address simple maintenance issues such as:
- Ensure major appliances work as intended
- Check that faucets and drains function properly and do not leak
- Clean and service heating and cooling systems
- Update window screens that are damaged
- Make sure all windows open and close and protect against the elements
- Replace burnt-out lightbulbs to verify the receptacles work
- Tighten loose hardware and lubricate squeaky hinges
2. Boost Your Home’s Curb Appeal
The home’s exterior is the first thing the appraiser will notice when arriving at your property. Boosting your home’s curb appeal can make a positive initial impression that may set the mood for the entire visit.
Steps you can take to improve your home’s curb appeal include:
- Mowing your lawn, trimming near fences and structures, and edging along sidewalks and driveways
- Pruning overgrown trees and bushes
- Adding fresh mulch to flowerbeds and at the bare base of plants
- Ensuring fencing is uniform and in good condition
- Removing debris and fixing damaged gutters
- Repairing any missing, broken, or cracked siding
- Scraping and repainting chipped paint
- Replacing missing shingles or damaged roofing
- Pressure washing your driveway and walkways
3. Make Those Renovations You’ve Been Planning
Have an outdated kitchen or bathroom that needs updating? Perhaps you’ve wanted to finish your attic or basement? If it’s practical, you may want to make renovations you’ve been planning in advance of your appraisal.
Keep in mind, however, that not all renovations will increase your home’s value by the amount you spend. Oftentimes, major improvements may cost more than will be reflected in the appraisal report. However, if you plan to make changes soon anyways, it may make sense to complete them now so they’re included in the appraiser’s calculation.
Caveat: Sometimes, overly customized renovations – such as combining two bedrooms into a single master suite – can actually hurt your home’s value and may be better left until after your refinance appraisal.
4. Declutter and Deep Clean
Your house doesn’t need to be spotless for your appraiser visit – having a lived-in home shouldn’t technically harm your valuation. However, just like with curb appeal, the appraiser’s perception could potentially affect the final results of the appraisal.
Removing unnecessary clutter, such as excess furniture and personal items, can make rooms appear more open and give the impression of a more spacious living area. Doing a deep clean to remove dust, dirt, and grime – particularly in the kitchen and bathrooms – can make the property come across as well-maintained and in better condition.
5. Ensure All Rooms Are Accessible
During their visit, the appraiser will want to do a walkthrough of your entire home, measure its dimensions, and verify that there are no significant issues with its condition. As such, it’s essential to ensure that all rooms – including basements, attics, sheds, and crawlspaces – are accessible for your refinance appraisal.
Have pets that don’t do well with strangers? Make sure to kennel or otherwise secure them during the appointment so that the appraiser can safely and comfortably view all areas of the home.
6. Document Your Home’s Square Footage
Your home’s square footage can directly impact its final valuation. Oftentimes, appraisers will use property records and other public data to get a general idea of your property’s dimensions and then take measurements during their visit to verify this information.
To ensure that measurements are correct, particularly if you’ve made additions to the home or believe the actual numbers don’t align with what’s on the tax roll, make sure to document the square footage of each area of your home. This can include rooms considered as living area, as well as other spaces such as garages and sheds.
Keep in mind that appraisers may not include dimensions of spaces they’re not sure are properly permitted, so be ready with blueprints or permits for any add-ons.
7. Improve Energy Efficiency
Making energy-efficient improvements to a home can increase its appraised value as these features offer long-term savings and expand its marketability.
This doesn’t mean you need to convert your property into a full-on green home. However, simple energy-efficient improvements you may want to consider include:
- Smart thermostats
- New insulation
- Energy-efficient appliances
- Solar panels
- Energy Star-rated doors and windows
- Low-flow water fixtures
- LED lighting
“Our clients who accepted energy-efficient upgrades and modern amenities saw not only improved daily comfort but also increased their home’s market value during refinancing,” reports Judah Strausberg, founding partner of Peak Builders Denver.
Some lenders may even offer special refinance programs for energy-efficient homes, so make sure to mention any of these improvements to your loan officer.
8. Know Your Local Market Conditions
While you can’t affect what’s going on in your real estate market, understanding local market conditions may influence when you choose to refinance.
Recent sales of similar nearby properties have the most significant impact on your home’s appraised value. If sales prices are increasing, that may indicate that it’s a good time to refinance. Similarly, if multiple comparable homes in your neighborhood have recently sold for high amounts, your refinance appraisal is more likely to come back with a favorable figure.
Related: How to Refinance When Your Home Value Has Changed
9. Refresh Paint and Flooring
Two relatively low-cost improvements you can make to increase your odds of a high appraisal are refreshing your paint and floor. A fresh coat of paint, both inside and out, can make a home feel newer and well-maintained.
Refreshed flooring can give a home a more modern feeling, but that doesn’t mean you must rush out and purchase the most expensive hardwood available. Fixes could be as simple as deep cleaning or replacing worn carpet or ensuring that wood and tile floors are thoroughly cleaned and polished.
10. Check for Termite Infestations and Address Any Damage
Although your appraisal won’t involve an in-depth inspection, the appraiser will take note of any apparent termite infestations or previous unrepaired damage. At best, this will negatively affect your final valuation; at worst, it may prevent you from qualifying for a loan altogether.
If you live in a termite-prone area, check for issues anywhere that wood comes in contact with the soil, often along the foundation, in basements, and structures such as porches and decks. Any problems should be addressed prior to having your home appraised.
11. Be Aware of the Requirements for Your Loan Type
For some types of refinance loans – particularly those backed by a government agency such as the FHA, VA, or USDA – appraisers are required to verify that the home meets the program’s minimum property requirements.
With these loan types, issues such as a leaking roof or non-functional heating system could keep you from refinancing until the problem has been resolved. Ask your lender about the specific requirements for your mortgage program and consider applying for a more lenient conventional refinance if your home can’t meet them.
The Day of the Appraisal
Time for your appraisal? It’s not too late to make a difference. Here are some tips for the day your appraiser visits that can help result in a high refinance valuation.
12. Be Present and Prepared on Appraisal Day
Unlike the appraisal when you bought your home, you’re allowed to be there for the refinance appraisal process. This gives you the opportunity to speak with your appraiser and make sure they’re aware of any pertinent facts that could impact their assessment.
Some of the best practices for being prepared on appraisal day include:
- Being available to answer any questions the appraiser has (but be sure to give them space to do their job)
- Having a summary of upgrades you’ve made, along with any relevant receipts, invoices, and permits
- Printing out recent comparable sales in your neighborhood
- Ensuring doors and gates are unlocked, and pets are properly secured
Note: Often, appraisers will have already researched comps and gathered publicly available data on your home before their visit. As such, some will be interested in talking and receptive to your documentation, while others may simply want to get in, take measurements, verify the home’s condition, and get out. However, it’s always better to be overprepared than underprepared for your refinance appraisal.
13. Keep the Home Well Lit
During the appraisal visit, you’ll want to ensure all lights are on, blinds are open, and the house is as well-lit as possible. This makes the space more inviting, highlights the home’s features, and makes it easier for the appraiser to take the high-quality photographs required for their report.
A refinance appraisal isn’t just about the house – it’s about how the home is presented. Preparation counts, and it’s often the small, thoughtful touches that help the numbers land where you want them.
14. Point Out Unique Features and Improvements
Since your home’s value is based on how it stacks up against other nearby properties that have recently sold, make sure to point out any unique aspects that make it stand out. While your appraiser will likely notice most items, bringing them to their attention never hurts.
Some features and improvements you may want to mention include:
- A recently replaced roof, especially if the work was done with longer-lasting materials
- Energy-efficient upgrades such as smart thermostats and Energy Star doors and windows
- A new or renovated water-resistant deck or porch
- Recent resurfacing of your pool or pool deck
- Added insulation in areas that aren’t easily visible without a detailed inspection
15. Present Recent Comparable Sales (Comps)
As previously mentioned, your appraiser will likely have researched recent comparable sales before visiting your home. Even still, it doesn’t hurt to be aware of these comps yourself and present printed-out copies from MLS listings or public records during your appraisal.
Comps will rarely be 100% identical to your home, so make sure to highlight any areas where your property matches or exceeds these recent sales.
16. Highlight Your Neighborhood’s Strengths
Appraisers often cover large market areas, so while they may be generally familiar with your neighborhood, they likely won’t have the same depth of insight about it as you do. Make sure to point out nearby features such as parks and playgrounds, recent improvements to the community, and other changes that make your area particularly desirable to live in.
This helps to ensure that comparable listings are pulled from neighborhoods similar in character and amenities as yours.
After the Appraisal
Once the appraiser has conducted their visit and completed their research of comps, your lender will provide you with a copy of your appraisal report. If the valuation didn’t come in as high as you hoped, you may still have options.
17. Check the Appraisal Report for Errors
Appraisers are human and sometimes make mistakes. Always check your appraisal report for errors that could have caused your valuation to be lower than it should. This is most commonly errors in calculations or the use of inaccurate data, but may also result from poorly selected comps or obvious bias in the comments.
If you find errors that affect your appraisal, point them out to your lender and ask whether a reconsideration of value (ROV) – the process of requesting an updated appraisal report – may be a wise decision.
18. Ask for a Second Appraisal
In some cases, you may be able to request a second appraisal when you believe the initial valuation is inaccurate but do not have enough evidence for an ROV. Be aware that not all lenders will be open to this option, and some types of loans may not even allow for another appraisal to be conducted.
Also, keep in mind that if your request for a second appraisal is granted, you’ll be on the hook to pay the additional appraisal fee.
What If Your Appraisal Is Low?
While the tips on this refinance appraisal checklist can help improve your chances of receiving a high valuation, there is no surefire way to guarantee your appraised value will come in at what you want.
If your appraisal figure is low and your current lender isn’t able to approve you for a loan – or is only able to at a rate higher than desired or with less equity available than you need to cash out – you may need to consider applying with a different mortgage company altogether.
