Residential street in New York suburb, New York, United States of America.

How your home stacks up against others in your neighborhood can have a significant impact on its appraised value. (Getty Images)

It can be hard to place a monetary value on something that carries sentimental value.

But when you decide to sell your home and find yourself tasked with pricing the place you hold so dear, how do you do it right?

As Gregory Barr, chief appraiser for Graham Appraisal in Glasgow, Kentucky, explains, all too often homeowners expect a higher appraisal value for their home when they put it on the market. “When we come by, everyone thinks their house is worth a lot more. When the tax assessor comes by, it’s worth a lot less,” he says.

[Read: The Guide to Selling Your Home]

At the end of the day, your home is worth as much as someone else will pay for it – and it's an appraiser's job to estimate what that value could be. “The market value is what a prospective buyer is willing to pay for the subject property,” explains Kelly Kellogg, owner of Appraisal Experts Inc. in the Orlando, Florida, area and author of “ABCs of a CMA,” which provides real estate agents with a breakdown of comparative market analysis to price and sell properties.

An appraisal can be used at different stages of the home selling or buying process by the buyer, seller or lender to determine the market value of a home. The appraisal process is often helpful for owners preparing to put their home on the market and especially when a seller and real estate agent have trouble agreeing on an initial asking price.

If you’re told your home is worth less than what you thought it was, what could be the cause? Appraisers weigh in on some of the major factors that could be dragging down the value of your home.

Here are some potential reasons your home value is lower than you expect:

  • Your house doesn't compare to others in your neighborhood.
  • Your home is near undesirable landmarks.
  • You overimproved your house.
  • The appraisal missed some details.

Your Home Doesn’t Compare to That House Down the Street

Appraisers use recent transactions of similar homes in the area to assess your home’s potential value – but the houses must have similar amenities and features and be in similar condition to be truly comparable.

According to Carole Christensen, owner of Appraisal Minnesota is Northfield, Minnesota, homeowners are often confused when they receive an appraisal value that's lower than they expected, and argue the neighbor’s house down the street sold for X more dollars. “Well, (your) neighbor’s house has a brand new kitchen and baths and is 30 percent larger than your house and is a different design,” Christensen says.

The number of bedrooms in particular is a key factor in selecting comparable sales. Kellogg says appraisers aim to compare prices of homes with the same number of bedrooms because that detail changes what the potential buyer is willing to pay.

“Typically we find that three-bedrooms sell for a higher value variance than a two-bedroom dwelling. You want to compare apples to apples if possible,” Kellogg says. However, homes in a 55-plus community may be different, she adds. There, homes with two bedrooms may have a higher value than a three-bedroom property, which is considered too big.

Planes, Trains and Automobiles Are Always Zooming Past Your House

There are a lot of things you can control when it comes to ensuring at least a certain value in your home, but some are outside your reach – and outside your property lines.

Christensen says that while a lake or pond can add value to a home, property backing up to a busy road, airport or power line is typically less desirable. “If you have a highway or a railroad, that’s not conducive to a good sales price. But that’s the exterior stuff you can’t do anything about,” she says.

You Went Overboard With Upgrades

Updates and added amenities can be a great way to increase the value of your home, but don’t expect to get back what you paid for those changes when you sell the home.

Many subdivisions with homes that are similar will often sell within a 20 percent price range of each other, depending on the age of the homes and renovations, Christensen says.

But spending $100,000 on improvements doesn’t mean you’ll sell your house for an additional $100,000 – especially not in a subdivision where homes sell for $150,000 to $200,000. “They’re not going to get that back because the area does not support that,” Christensen says.

The improvement choices should be based on those of similar homes in the area, Kellogg says. When it comes to installing a solar panel system or swimming pool, you’ll likely recoup some of that cost if they’re common features for similar homes. “You don’t want to be the first person to make that improvement in your neighborhood,” Kellogg says.

[Read: Why You Should Sell Your Home in 2019.]

What You Can Do With a Low Appraisal

If your home appraised for less than you were hoping for, you’re not doomed. The calculated value isn’t set in stone; it serves as a snapshot of the market at a certain time, rather than an everlasting price.

“If I’m at your house on the 15th of December and I do an appraisal, and the next day the house across the street sells, that could have changed (the value) dramatically,” Barr explains.

You can’t guarantee changes in the market, and you can’t change your neighborhood, but appraisers recommend doing a few things to ensure you understand your home's value. Below, they offer some easy fixes to increase interest from buyers.

Talk to the Appraiser

It doesn't hurt to talk to the appraiser about what led him to the specific value of your home. And if you think something is missing from his conclusion, mention it.

Even when all the facts are right, it's possible the appraiser is unaware of a similar house on the market that isn't available in the public record, and any missing transactions can have an impact on your home's value.

“Maybe (the homeowner) can provide the bank with some additional comparable sales data, or information about the subject property,” says Stephen Wagner, 2019 president of the Appraisal Institute.

Ask for the Price You Think Is Best

An appraised value that's lower than expected doesn’t mean there isn't a possibility you could sell your home for more money. If you believe you can get a higher offer, go for it.

“A seller can still sell the home or put the home on the market for what they believe the value is. But at least when a buyer comes along and makes an offer, now the seller has the appraisal to go back and say, ‘Oh, there’s something here, because I’m getting a similar offer (to the appraisal),’ and then they can negotiate,” Kellogg says. “Or if they get a lowball offer, the seller may decide to pull the appraisal out and share it with the potential buyer.”

Just keep in mind that it's not easy to pass off a home for more than it's worth. The appraised value reflects what people would be willing to pay, and it can be hard to find an outlier who will pay significantly more.

Fix Things Up

A new coat of paint and tidying up around the property can go a long way. Any real estate professional will encourage you to make your home clean and clutter-free, both inside and out, before potential buyers start touring.

If you're looking to make an improvement that will help make buyers value your home more, Wagner says new flooring "can be one of the easier, relatively cost-effective repairs that you can do."

[Read: A Checklist for Home Inspections]

Get the Neighbors to Help

To draw more interest and potential bids, ask your neighbors to park in their driveway, which will make the street less crowded. Kellogg says the fewer cars parked on the street in a subdivision, the better for any homes on the market.

It’s only a slight inconvenience, and Kellogg says the neighbors will benefit in the long run. “As a neighbor, you want the person who’s moving to sell their home for the highest (price) the market will bear," she says, "because that affects your real estate value indirectly.”

The bottom line: Be ready for an appraised price tag below the one you may have in your head – and be prepared with a few tricks to increase interest and add value to your home.


10 Secrets to Selling Your Home Faster

Time your listing for a fast sale.

For sale sign with sold sticker in front of a new modern house. Front door is visible. Copy space

(Getty Images)

Selling your home quickly not only allows you to move on with your life, it also means fewer days of keeping your home in pristine condition and leaving every time your agent brings prospective buyers for a tour. Real estate information company Zillow crunched data from 2008 to 2016 and found the optimum time to list a home for sale was on a Saturday between May 1 and 15 – at least looking at national numbers. Homes listed during those times sold nine days faster and for 0.8 percent more than the average annual home price, according to Zillow’s analysis. In more moderate climates, the optimum time came in March or April.

Timing isn't everything when selling your home.

Timing isn't everything when selling your home.

House on the corner

(Getty Images)

As you list your home, remember those numbers are historical averages and this spring may be different. "With 3 percent fewer homes on the market than last year, 2017 is shaping up to be another competitive buying season," Zillow chief economist Svenja Gudell said in a news release. "Many homebuyers who started looking for homes in the early spring will still be searching for their dream home months later." But how fast your home actually sells, and at what price, depends on a lot more factors than when you list it. A National Association of Realtors survey published late last year found that the average home was on the market a month in 2016, down from 11 weeks in 2012.

Here are 10 secrets to selling your home faster, no matter when you list it.

Take great photos.

Take great photos.

Close-up of a man photographing with a camera

(Getty Images)

According to an NAR survey, 51 percent of homebuyers found the house they eventually bought online and 95 percent used the internet in their home search. If your listing photos don’t show off the features of your home, prospective buyers may reject it without even taking a tour or going to the open house. Hiring a professional photographer and posting at least 30 photos of your home, inside and out, is a good way to attract a buyer.

Clean everything.

Clean everything.

Not prepared to miss a spot!

(People Images/ Getty Images)

Nothing turns off buyers like a dirty house. Hire a company to deep clean if you can’t do it yourself. That includes washing windows inside and out, removing any clutter and cleaning the garage, basement, baseboards, ceilings and closets – and anywhere else the buyer can see.

Depersonalize the home.

Depersonalize the home.

Modern living room

(Getty Images)

Remove all your family photos and memorabilia. You want buyers to see the house as a home for their family, not yours. Remove political and religious items, your children’s artwork (and everything else) from the refrigerator and anything that marks the house as your territory rather than neutral territory.

Let the light in.

Let the light in.

Sunlight through a bedroom window.

(Getty Images)

People love light and bright, and the best way to show off your house is to let the sunshine in. Open all the curtains, blinds and shades, and turn lights on in any dark rooms. If your house is on a lockbox and your real estate agent isn’t going to be there to open blinds and turn on lights before showings, leave everything open when you leave for work every morning.

Make your home available.

Make your home available.

Woman realtor talking to a young family

(Getty Images)

Buyers like to see homes on their schedule, which often means evenings and weekends. Plus, they want to be able to tour a home soon after they find it online, especially in a hot market where they're competing with other buyers. If your home can be shown with little or no notice, more prospective buyers will see it. If you require 24 hours’ notice, they are likely to see and perhaps choose others homes first.

Set the right price.

Set the right price.

House with for sale sign in yard and open wooden fence

(Getty Images)

No seller wants to leave money on the table, but the strategy of setting an unrealistically high price with the idea you can come down later doesn’t work in real estate. Buyers and their agents have access to more information than ever, and they know what most homes are worth before viewing them. A home that’s overpriced tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it. Set the right price from the beginning, otherwise you might cost yourself precious time and money.

Remove excess furniture and clutter.

Remove excess furniture and clutter.

Self storage units

(Getty Images)

Nothing makes a home seem smaller than too much big furniture. Rent a PODS self-storage container or a storage unit and remove as much furniture as you can. It will immediately make your home seem calmer and larger. Remove knickknacks from all surfaces, pack them away and store the pieces upon which you displayed them. Take a minimalist approach to books, CDs, throw rugs and draperies, and clear off your kitchen and bathroom countertops, even appliances you normally use. If you can remove half the stuff in your closets, that’s even better, because it makes the home’s storage space look more ample.

Spread the word.

Spread the word.

African American neighbors greeting each other over fence

(Getty Images)

Your neighbors are often the best salespeople for your home because they love the neighborhood. Make sure they know your home is for sale and are invited to your open house. Share your listing on social media and ensure your agent does the same. Put flyers on neighborhood bulletin boards and share the news on neighborhood email lists and Facebook groups. If you have the skills, make a video to tell the story of how much you love the house and the neighborhood and put it up on YouTube.

Repaint in neutral colors.

Repaint in neutral colors.

Couple preparing to paint living room

(Getty Images)

A coat of paint will do wonders to freshen up your home, both inside and out. This is the time to paint over your daughter’s purple bedroom and cover up your red dining room accent wall. You want to create a neutral palette where buyers can envision putting their own personal touches. Warm neutrals such as gray, taupe and cream are better than bright white.

Spruce up the front of your home.

Spruce up the front of your home.

With white pillars, steps in the entry way

(Getty Images)

You’ve heard it 100 times before, and it’s still true: Curb appeal matters. You don’t get a second chance to make a first impression. A new or freshly painted front door, new house numbers and a new mailbox can breathe life into your entryway. Fresh landscaping and flowers in beds or in pots also enhance your home’s first impression. Trim trees and bushes, and pressure wash walkways, patios and decks. Leave the outdoor lights on, too, because prospective buyers may drive by at night.

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Updated on April 10, 2019: This story was previously published on Dec. 28, 2015, and has been updated with new information.

Tags: real estate, housing market, home prices, housing


Devon Thorsby is the Real Estate editor at U.S. News & World Report, where she writes consumer-focused articles about the homebuying and selling process, home improvement, tenant rights and the state of the housing market.

She has appeared in media interviews across the U.S. including National Public Radio, WTOP (Washington, D.C.) and KOH (Reno, Nevada) and various print publications, as well as having served on panels discussing real estate development, city planning policy and homebuilding.

Previously, she served as a researcher of commercial real estate transactions and information, and is currently a member of the National Association of Real Estate Editors. Thorsby studied Political Science at the University of Michigan, where she also served as a news reporter and editor for the student newspaper The Michigan Daily. Follow her on Twitter or write to her at dthorsby@usnews.com.