What Every Homeowner Should Know About Appraisals

Understanding the Value Behind the Valuation

When it comes to buying, selling, refinancing, or investing in real estate, one critical step can make or break a deal: the appraisal.

Yet, for many homeowners and buyers, the appraisal process remains a mystery—one filled with confusion, frustration, and questions like, “Why did my house appraise so low?” or “How does an appraiser come up with that number?”

At Premes Realtors, we believe transparency and education are key. Let’s pull back the curtain on the appraisal process and shed light on what really goes into determining your home’s market value.

What Exactly Is an Appraisal?

An appraisal is an unbiased professional opinion of a property's market value, typically conducted by a licensed real estate appraiser. Mortgage lenders require appraisals to ensure the loan amount does not exceed the property’s worth. In simple terms: it's about protecting all parties involved from overpaying or over-lending.

Key Factors That Influence an Appraisal

Appraisers follow strict guidelines (like USPAP and FHA’s 4000.1 Handbook) and analyze multiple data points, including:

• Comparable Sales (aka “Comps”) – Recent sales of similar homes nearby.

• Condition – Updated kitchens, new roofs, or deferred maintenance all matter.

• Size and Layout – Usable living space, bedroom/bathroom count, and flow.

• Location – School district, neighborhood appeal, proximity to amenities.

• Market Trends – Is the market appreciating, stable, or declining?

Common Misconceptions

“My neighbor’s house sold for $400K, so mine must be too.”
Maybe, maybe not. If your neighbor's home was fully renovated and yours hasn’t been updated since 1993, the values will differ.

“The Zestimate says my house is worth more!”
Online estimates are algorithmic guesses—not professional appraisals. They're useful tools, but not legally binding or lender-accepted.

“Appraisers just use square footage.”
While size matters, quality, condition, design, and location can outweigh raw square footage.

How You Can Help the Process - A Quick Checklist

• Tidy mechanical areas and label the breaker panel
  Signals good maintenance and gives a positive impression to the appraiser. (Approx. 15 minutes)

• List all improvements with dates and costs
  Supports credible adjustments in the report. Include renovations, replacements, and upgrades. (Approx. 30 minutes)

• Provide HOA bylaws, energy bills, and prior appraisals
  Helps reduce post-inspection questions and supports value-related adjustments. (Approx. 10 minutes)

• Ensure attic, crawlspace, and all rooms are fully accessible
  Prevents “subject to” conditions that delay loan processing. (Approx. 10 minutes)

• Gather permit receipts or municipal cards
  Verifies that improvements were done to code and can support value. (Approx. 5 minutes)

These small preparation steps can streamline the appraisal, minimize delays, and help secure a more accurate and favorable report.

What If the Appraisal Comes in Low?

A low appraisal doesn’t have to kill the deal. Options include:

• Rebuttal with additional data

• Negotiating the sales price

• Buyer increases the down payment

• Requesting a second opinion or reconsideration

At Premes Realtors, we often assist clients in reviewing reports and navigating next steps when values don’t align with expectations.

Final Thoughts

The appraisal is more than just a number—it's a reflection of current market realities, property conditions, and professional analysis. Whether you're planning to refinance, sell, or just understand your home’s value, a quality appraisal can empower your decisions with confidence.

What This Means for Lehigh Valley Homeowners

The appraisal landscape now moves faster (hybrids), smarter (UAD 3.6), and greener (energy credits). Yet algorithms still need local expertise to interpret quirky borough zoning or vintage row-home layouts. That’s where a human—preferably one who pioneered BAM right here in Allentown—adds value.

Ready for an up-to-the-minute, bullet-proof valuation?

Click “Request Appraisal Quote,” call 610-437-4424, or email bob@PremesRealtors.com.

Let’s value your premises—accurately, credibly, and ahead of the curve.

Have appraisal questions? Contact us today—we’re happy to guide you through the process.