Appraisals and How to Protect Your Sale Price

If you saw my recent video about online estimates versus the actual sale price, you already know that algorithms can only take you so far. They are a starting point, not the full story. Appraisals work the same way. There is data involved, but there is also professional judgment. And that judgment can vary from one appraiser to another.

Before I go any further, it is important to say this: I am not an appraiser. What I am sharing is based on my experience helping clients buy and sell homes every day. These are the patterns, challenges and strategies I see in real transactions, and why the appraisal process is something I think about constantly on behalf of my clients.

This is also where hiring the right realtor truly matters. A thoughtful pricing strategy, solid preparation and advocacy during the appraisal can make a measurable difference in your final outcome.

Here’s a look at how appraisers think and why your agent’s expertise plays such an important role.

How Appraisers Look at Value

Comparable sales in the same complex

For condos and townhomes, this is the biggest factor. Appraisers want to compare units that are as close as possible in layout, size and style. A similar unit in the same complex nearly always outweighs one that sold elsewhere.

Bedrooms matter, but the jump from two to three is the biggest

Going from two bedrooms to three adds significant value.
Going from three to four adds much less.

Above grade square footage holds the most weight

Finished basement space helps, but it is valued below above grade living area.

Style matters

Colonials are compared to colonials. Splits to splits. Appraisers stay consistent in home style when selecting comps.

They stay within the same town

Even if you are right on the border, they typically avoid crossing into another town due to different school systems and taxes.

Time frame

They prefer to stay within the past six months and will stretch to twelve if necessary.

Closed sales only

Properties that are pending or under agreement do not count. They need closed data to support the valuation.

Market conditions and demand

Appraisers pay attention to how many offers a home received, how quickly it went under contract and the level of buyer competition.

Condition and updates

Clean, well-maintained homes with thoughtful updates almost always appraise stronger.

Indoor and outdoor living space

Patios, yards, decks and private outdoor space can absolutely influence value, especially in condo developments.

Distance

Appraisers try to stay within one mile but may extend further if the town is large or lots are spread out. They still try to remain within the same municipality.

Why Appraisers Don’t Always Agree

Two appraisers can look at the same home and land on two different numbers because the process includes interpretation as well as data.

Refinance appraisals are often more conservative.
Purchase appraisals tend to come in at or near the contract price because the appraiser knows what the buyer is willing to pay.

All of this is why experience and preparation matter. You want someone who understands how to present your home and advocate for its value.

Real World Examples: When Strategy and Advocacy Make a Difference

Here are two recent situations where thoughtful preparation and hands-on involvement helped support the contract price.

1. Record-Breaking Two Bedroom in Melrose

I represented the seller for a two bedroom in Melrose this past year. It was a beautiful home and very well cared for, and it was positioned to become the highest selling two bedroom ever recorded in Melrose.

Once the home went under contract, appraisal was top of mind. Even though the buyers had provided some appraisal gap coverage and I represented the sellers, I still wanted to give them the strongest chance at an appraisal that supported the value.

I met the appraiser in person, brought detailed comps, explained the updates and highlighted the features that set the property apart. I also shared information about market activity and buyer demand.

It appraised at value.
The sellers achieved a record-setting result. The buyers moved forward with confidence. Everyone won.

This happened because someone showed up prepared and ready to communicate the true value of the home.

2. Highest Sale in a Condo Complex in the Past Year

A second example involved a condo that had several rare features for its complex: a corner location, a large private yard and a finished basement. Based on the last twelve months of sales, this home was positioned to sell higher than any other unit in the development.

Once it went under contract, I immediately thought about the appraisal. If it came in only at list price instead of the accepted offer price, the difference would have been more than my commission.

Here is where it got interesting.

The first appraiser assigned to the file reached out only to ask for the lockbox code. He had no interest in meeting, reviewing comps or hearing anything about the home. That is a red flag. When an appraiser is not willing to receive context, there is a higher risk of a low value.

So I contacted the lender and asked if the file could be reassigned. He agreed and arranged for a new appraiser who was open to meeting and hearing the details.

I met the second appraiser at the property, walked him through the unique features, provided comps and supported the accepted offer price with clear data.

The condo appraised at value.

Could the first appraiser have brought in a lower number? Absolutely. That is exactly why having an experienced and proactive agent matters. Advocacy is not optional in this market.

What Happens If an Appraisal Comes In Low

There are still options:
• Adjusting the loan structure
• Bringing additional funds to closing
• Renegotiating
• Requesting an appraisal review in certain cases – I have done this for my buyers with success.

A good realtor will walk you through each scenario and help you choose the option that best protects your goals.

Strategy Wins

Appraisals are not purely formulas or numbers in a spreadsheet. They are shaped by market activity, preparation, condition and the ability to clearly communicate a home’s value.

This is why hiring the right realtor matters. Someone who understands the local market. Someone who knows how appraisers think. Someone who prepares you for the process and shows up when it counts.

If you are thinking about buying or selling and want to understand how your home might appraise in today’s market, I am always here to help.