A home appraisal checklist helps buyers and sellers understand what an appraiser may review before a mortgage loan can move toward closing.
A home appraisal is an independent estimate of a property’s value. For many mortgage transactions, the lender needs an appraisal or another accepted valuation method to help confirm that the property supports the requested loan amount. The Consumer Financial Protection Bureau explains that an appraisal is an independent assessment of the value of the property, and borrowers are generally entitled to receive a copy of appraisals and other written valuations used for a typical first-lien home loan.
An appraiser may review the home’s condition, size, features, improvements, location, comparable sales, market trends, and loan-program property requirements.
A home appraisal is not the same as a home inspection.
The appraisal is mainly about value and lender requirements. A home inspection is usually a more detailed condition review ordered by the buyer to identify potential repair issues.
Important note: This article is for informational purposes only and is not a commitment to lend. Appraisal requirements, property eligibility, loan approval, rates, APR, terms, conditions, and closing timelines depend on borrower qualifications, property details, appraisal results, loan program, lender guidelines, investor requirements, and underwriting approval.
Key Takeaways A home appraisal checklist can help buyers and sellers prepare before the appraiser visits the property. Appraisers review property value, condition, comparable sales, location, features, improvements, and loan-program requirements. A home appraisal is different from a home inspection. The appraisal supports value and lending review; the inspection focuses more deeply on condition. Conventional, FHA, VA, USDA, and Jumbo loans may have different appraisal and property requirements. If the appraisal comes in low or lists required repairs, the loan may need additional review before closing. Loan Factory can help buyers compare mortgage options and understand how appraisal results may affect the loan process. What Is a Home Appraisal? A home appraisal is an independent opinion of a property’s market value. In a mortgage transaction, the lender may use the appraisal to help confirm whether the home supports the loan amount requested.
The appraiser does not approve the buyer.
The appraiser does not negotiate the contract.
The appraiser provides an opinion of value based on property details, market data, comparable sales, and applicable appraisal standards.
A mortgage appraisal may consider:
Property location Property condition Square footage Lot size Number of bedrooms and bathrooms Floor plan and functionality Upgrades and improvements Recent comparable sales Market trends Property type Safety and habitability concerns Loan-program requirements Fannie Mae’s appraisal guidance places significant emphasis on comparable sales and requires appraisers to explain why they selected the comparable sales used in the report.
The goal of the appraisal is to support a value opinion, not to create a complete repair report.
Home Appraisal Checklist for Buyers and Sellers A home appraisal checklist should focus on condition, access, safety, documentation, visible repairs, completed improvements, comparable sales support, and property-specific details that may affect value.
Not every mortgage transaction requires a traditional on-site appraisal. Certain eligible conventional loans may qualify for value acceptance or another permitted valuation approach, depending on the loan program, lender, property, and underwriting requirements. The checklist below is primarily intended for transactions requiring an on-site appraisal.
Use this checklist before the appraisal appointment.
Checklist Item
Why It Matters
Clear access to all rooms The appraiser may need to observe interior spaces. Clear access to attic, crawl space, garage, and mechanical areas. Access can affect property review. Complete visible safety repairs Safety issues may delay certain loan approvals. Fix peeling paint where required. Especially important for FHA, VA, and older homes Ensure utilities are on when required. Appraiser may need to observe systems. Clean and declutter. Helps the appraiser view the property clearly Provide improvement records. Supports upgrades and renovation history List recent repairs. Helps explain maintenance and condition Check smoke and carbon monoxide detectors. Safety items may matter depending on local rules and loan type Secure handrails and steps Safety issues can trigger repair conditions. Repair obvious water leaks. Moisture issues can raise concern. Make sure appliances included in the sale are present. Missing items may affect the report. Prepare HOA or condo details if applicable. Condo and HOA data may matter. Share permitted additions or improvements. Helps support accurate property details
This checklist does not guarantee a value or approval.
It helps reduce avoidable delays and gives the appraiser clear access to the property.
What Does an Appraiser Look for When Appraising a House? An appraiser looks for property features, condition, location, market value support, comparable sales, and any issues that may affect value or loan-program eligibility. The appraiser’s job is to form an independent opinion of value based on the property and market.
Property Condition The appraiser may observe the overall condition of the home.
This can include:
Roof condition Exterior condition Interior condition Flooring Walls and ceilings Windows and doors Foundation signs Moisture or water damage Visible safety issues Deferred maintenance The appraiser is not performing the same level of review as a home inspector, but obvious condition issues can affect the appraisal.
Property Size and Layout The appraiser may review:
Gross living area Bedroom count Bathroom count Floor plan Functional layout Garage or carport Basement or finished areas Additions or converted spaces If an addition was completed without permits or appears inconsistent with public records, it may require additional review.
Comparable Sales Comparable sales, often called “comps,” are recently sold properties that help support the opinion of value.
The appraiser may compare the subject property with homes that are similar in:
Location Size Age Condition Design Property type Lot size Bedroom and bathroom count Features and upgrades Market appeal Fannie Mae requires appraisers to explain the comparable sales selected and address differences when using sales from competing neighborhoods or adjusted comparables.
Location and Market Conditions Location can affect value.
The appraiser may consider:
Neighborhood School district Market activity Supply and demand Nearby comparable sales Property access External influences Local market trends A home in a high-demand area may not appraise the same as a similar home in a slower market.
Upgrades and Improvements Appraisers may consider improvements that add market-supported value.
Examples may include:
Updated kitchen Updated bathrooms New roof New HVAC system Energy-efficient upgrades Flooring improvements Finished basement Permitted additions Exterior improvements Not every upgrade adds dollar-for-dollar value.
The appraiser considers how the market reacts to improvements.
Appraisal Inspection Checklist: What to Review Before the Appraiser Arrives An appraisal inspection checklist can help sellers and buyers prepare the home so the appraiser can complete the report without unnecessary delays.
Exterior Checklist Review the outside of the home.
Clear driveway and entry access Trim overgrown landscaping Remove debris Repair broken steps or loose railings Check exterior paint condition Repair visible siding damage Clean gutters if visibly clogged Make sure house numbers are visible Secure exterior doors Remove obvious safety hazards Check roof for visible damage Make sure utilities or meters are accessible Interior Checklist Review the inside of the home.
Clear access to every room Clean and declutter Replace missing outlet covers Repair broken windows Fix obvious leaks Secure loose handrails Repair damaged flooring if needed Make sure utilities are on if required Make sure included appliances are present Make attic or crawl access available if applicable Keep pets secured during the visit Documentation Checklist Prepare helpful property information.
List of upgrades Repair receipts Permit records Floor plan, if available Survey, if available HOA information Condo documents, if applicable Recent comparable sales from agent, if appropriate Solar lease or ownership documents, if applicable Septic, well, or water system details, if applicable Documentation does not force a higher value.
But it can help the appraiser understand the property clearly.
How Do I Prepare for a Home Appraisal? To prepare for a home appraisal, make the property accessible, complete obvious safety repairs, gather documentation for improvements, clean the home, and make sure the appraiser can observe key areas of the property.
1. Make the Home Easy to Access The appraiser should be able to access:
Front entrance All living areas Bedrooms Bathrooms Garage Basement Attic, if applicable Crawl space, if applicable Mechanical systems Exterior areas Limited access can delay the report.
2. Complete Visible Repairs Before the appraisal, review obvious issues such as:
Peeling paint Missing handrails Broken steps Exposed wiring Broken windows Active leaks Missing flooring Safety hazards Incomplete repairs Some issues may matter more depending on the loan type.
FHA and VA loans have program-specific property requirements that may affect the appraisal and loan approval process. For FHA loans, HUD's Minimum Property Requirements focus on safety, soundness, and security. Minimum Property Standards also apply to certain new construction properties. VA loans follow separate Minimum Property Requirements intended to ensure that eligible properties are safe, structurally sound, and sanitary. Required repairs and additional inspections depend on the property's condition and applicable program guidelines.
3. Gather Improvement Records If the home has been improved, prepare a simple list.
Include:
Date of improvement Type of work completed Contractor name, if available Permit information, if applicable Cost, if helpful Before-and-after context, if useful Examples:
Roof replaced HVAC updated Kitchen renovated Bathroom remodeled New windows installed Electrical panel upgraded Flooring replaced Foundation repair completed 4. Clean, Declutter, and Organize A clean home does not automatically create a higher value.
But it helps the appraiser observe the property clearly.
Focus on:
Clear floors Accessible rooms Clean countertops Open doors Visible mechanical areas Clear garage access Safe walking paths 5. Share Relevant Information Without Pressuring the Appraiser It is acceptable to provide factual information about the home.
Avoid trying to pressure or influence the appraiser’s opinion of value.
Appraiser independence is important. Fannie Mae’s Appraiser Independence Requirements are designed to protect the independence, objectivity, and impartiality of appraisers throughout the valuation process.
Helpful information may include:
List of improvements Permits Unique property features Recent repairs HOA details Comparable sales information from the agent The appraiser decides what is relevant to the final report.
Home Appraisal vs. Home Inspection A home appraisal estimates market value for lending purposes. A home inspection is a more detailed review of the property’s condition, usually ordered by the buyer to identify repair concerns.
Item
Home Appraisal
Home Inspection
Main purpose Estimate market value Review property condition Ordered by Usually lender Usually buyer Main user Lender and borrower Buyer Focus Value, market data, condition, loan requirements Systems, structure, safety, defects Required for mortgage? Often required or replaced by an accepted valuation method Usually optional but strongly considered Report result Opinion of value Condition findings Can affect loan? Yes Indirectly, depending on repairs or negotiations
A buyer should not treat the appraisal as a substitute for a home inspection.
An appraisal may note obvious defects, but it is not designed to uncover every hidden issue.
For buyers, the appraisal protects the lending decision. The inspection helps protect the buyer’s understanding of the home’s condition.
What Appraisers May Review Inside the Home Inside the home, an appraiser may observe layout, room count, condition, finishes, upgrades, functional issues, safety concerns, and overall market appeal.
Interior Items That May Matter Living area Bedroom count Bathroom count Kitchen condition Bathroom condition Flooring Walls and ceilings Windows and doors Heating and cooling systems Visible water damage Signs of deferred maintenance Finished basement areas Attic or crawl access Built-in appliances Overall quality and condition The appraiser is not usually testing every system like a home inspector would.
But visible issues can still affect the appraisal.
What Appraisers May Review Outside the Home Outside the home, an appraiser may observe site condition, exterior materials, roof condition, lot features, access, garage, outbuildings, safety issues, and neighborhood influences.
Exterior Items That May Matter Roof appearance Siding or stucco condition Foundation signs Driveway Walkways Decks and patios Porch condition Garage or carport Lot size Drainage concerns Fencing Landscaping External hazards Property access Outbuildings or accessory structures Curb appeal alone does not determine value.
But exterior condition can influence marketability and required repairs.
What Appraisers Look for in Comparable Sales Appraisers use comparable sales to support the opinion of value. They look for recently sold homes that are similar to the subject property in location, size, condition, design, features, and market appeal.
Comparable sales may be adjusted for differences such as:
Size Lot size Age Condition Upgrades Garage spaces Bedroom and bathroom count Location View Basement Pool or major features Fannie Mae guidance says appraisers must select sales that are the best indicators of value and make market-supported adjustments when there are meaningful differences.
This is why a home may not appraise at the contract price even if the buyer and seller agreed to that price.
The appraiser must support value with market evidence.
Conventional, FHA, VA, and USDA Appraisal Differences Different loan programs may have different appraisal and property requirements. Conventional appraisals generally focus on market value and property acceptability, while FHA, VA, and USDA loans may include additional property standards.
Conventional Appraisal A conventional appraisal often focuses on:
Market value Comparable sales Property condition Property type Marketability Safety or structural concerns Investor guidelines Fannie Mae’s appraisal requirements are tied to mortgage lending and underwriting standards, including property valuation and appraisal review.
FHA Appraisal FHA appraisals may include additional property review tied to HUD requirements.
HUD’s handbook materials identify FHA appraisers as roster appraisers who observe, analyze, and report physical and economic property characteristics and provide an opinion of value to FHA.
FHA-related issues may include:
Safety Security Soundness Property condition Required repairs Minimum property standards Lead-based paint concerns in older homes Utilities and habitability issues VA Appraisal For VA loans, the lender arranges for a VA appraiser to assess the home and ensure it meets VA minimum property requirements before the loan can be approved.
VA appraisal review may consider:
Reasonable value Minimum property requirements Safety Sanitary conditions Structural soundness Access Utilities Property condition USDA Appraisal USDA loans may also have property eligibility and condition requirements.
Because USDA requirements can depend on program rules, property location, and lender review, buyers should confirm requirements early.
Loan program matters. A home that works for one loan type may need repairs or additional review for another.
Common Appraisal Issues That Can Delay Closing Common appraisal issues include a low appraised value, required repairs, missing permits, incomplete construction, safety hazards, property access problems, comparable sale concerns, and mismatch between contract terms and market support.
Low Appraised Value A low appraisal happens when the appraised value is below the contract price.
This may create options such as:
Renegotiating the price Buyer bringing additional funds, if allowed and affordable Seller making concessions, if allowed Requesting a reconsideration of value with support Changing loan structure Canceling under contract terms, if applicable The right next step depends on the purchase contract, loan type, appraisal details, and borrower profile.
Required Repairs Some appraisals include repair conditions.
Repairs may be needed before closing if the issue affects property eligibility.
Common repair concerns may include:
Peeling paint Broken windows Missing handrails Safety hazards Roof problems Water damage Incomplete repairs Utility issues Structural concerns Incorrect Property Details Appraisal reports can include errors.
Examples may include:
Incorrect square footage Wrong room count Missing improvements Incorrect condition notes Misstated property features Overlooked comparable sales Public record mismatch If an appraisal report contains factual errors, incorrect property characteristics, or potentially relevant comparable sales that were not considered, borrowers may ask their lender about a reconsideration of value (ROV). This process allows the lender to request that the appraiser reassess the valuation based on additional information or identified deficiencies. An ROV does not guarantee a higher appraised value.
Federal agencies have issued guidance describing how financial institutions may incorporate reconsideration of value processes and controls for residential real estate valuations.
Delayed Access If the appraiser cannot access the property or certain areas, the report may be delayed.
Make sure access is available before the appointment.
What Happens If the Home Appraisal Comes in Low? If the home appraisal comes in low, the buyer, seller, agents, and lender may need to review options. A low appraisal can affect the loan amount because lenders usually base financing on the lower of the purchase price or appraised value.
Understanding the loan-to-value ratio can help buyers see why a lower appraised value may change the required down payment or available financing.
Possible next steps may include:
Review the appraisal report for errors Provide additional comparable sales if appropriate Request a reconsideration of value through the lender Renegotiate the purchase price Adjust the down payment or loan structure Seller completes agreed repairs or concessions, if allowed Buyer brings additional funds, if affordable and allowed Cancel under appraisal contingency, if available A low appraisal does not always end the transaction.
But it may require quick communication and a clear plan.
Loan Factory Experience Note: In real mortgage transactions, low appraisals often come down to comparable sales, condition, or rapidly changing local market data. The strongest responses are factual: correct property details, relevant comparable sales, documented improvements, and clear communication through the lender’s appraisal review process.
What Happens If the Appraisal Requires Repairs? If the appraisal requires repairs, the lender may need evidence that repairs were completed before final approval or closing. These conditions are reviewed as part of the mortgage underwriting process . Requirements depend on the loan type, issue, and underwriting guidelines.
Possible repair-related steps include:
Seller completes repairs before closing Appraiser performs a final inspection or update, if required Contractor invoices or receipts are provided Photos are submitted, if accepted Escrow repair holdback is reviewed, if allowed Loan terms or closing timeline are adjusted Not every repair can be handled the same way. Some loan programs may require repairs before closing. Others may allow different options depending on guideline requirements and lender approval.
If the lender has issued a conditional approval for a home loan , appraisal-related repairs may be among the conditions that must be resolved before final approval.
How Buyers Can Prepare for a Home Appraisal Buyers can prepare for a home appraisal by understanding the appraisal to closing timeline , reviewing the contract, staying in touch with the lender, and being ready to respond if the value or property condition creates questions.
Buyer Checklist Understand whether your loan requires an appraisal Ask your lender about timing Review your appraisal contingency Confirm property access with the seller or agent Avoid major financial changes while waiting Review the appraisal report when received Watch for value, repairs, or condition notes Ask your loan advisor about next steps Keep funds available in case cash-to-close changes Be prepared to compare options if appraisal value is low Understanding the Loan Factory loan process can also help buyers see how the appraisal fits into the broader mortgage approval and closing process.
Under CFPB Regulation B, for loans secured by a first lien on a dwelling, lenders generally must provide applicants with free copies of appraisals and other written valuations promptly upon completion, or at least three business days before closing, whichever is earlier. Applicants may waive certain timing requirements when permitted by law, but they retain the right to receive copies of the valuations.
How Sellers Can Prepare for a Home Appraisal Sellers can prepare for a home appraisal by making the home accessible, addressing obvious safety issues, organizing improvement records, and helping the appraiser understand completed upgrades.
Seller Checklist Clean and declutter the home Make all rooms accessible Make garage, attic, and crawl access available Secure pets Turn on utilities if required Complete obvious repairs Repair peeling paint where needed Replace missing fixtures or outlet covers Provide a list of upgrades Provide permit records if available Share HOA or condo documents if needed Make exterior areas accessible Sellers should avoid pressuring the appraiser.
The goal is to provide accurate property information and access.
Appraisal Checklist by Loan Type The appraisal checklist may change depending on the loan type. Buyers should confirm requirements early because Conventional, FHA, VA, USDA, and Jumbo loans may treat property issues differently.
Loan Type
Appraisal Focus
Conventional Value, marketability, property condition, investor requirements FHA Value plus FHA property standards and condition items VA Reasonable value plus VA minimum property requirements USDA Value, property eligibility, condition, and USDA program rules Jumbo Value, property type, condition, marketability, investor overlays Renovation loans As-is value, after-improved value, repair scope, and program rules
A buyer using a government-related loan program should ask about property condition rules before making an offer on a home needing repairs.
Loan Factory is not affiliated with any government agency, but loan advisors can help buyers compare available program options through participating lender partners.
Red Flags to Review Before the Appraisal Some issues can create appraisal questions, repair conditions, or closing delays. Reviewing them early may help avoid surprises.
Property Condition Red Flags Active roof leaks Major water damage Foundation cracks Missing flooring Exposed wiring Broken windows Unsafe stairs Missing handrails Non-functioning utilities Severe pest damage Mold-like conditions Incomplete construction Peeling paint on older homes Unpermitted additions Missing appliances included in the contract Market and Value Red Flags Contract price far above recent sales Few comparable sales Unique property type Rural or remote property Rapidly changing market Large concessions Recent flip or major renovation Unusual lot or zoning Mixed-use concerns Not every red flag creates a problem.
But each one may need documentation or review.
Case Study: Appraisal Preparation Before Closing Here is a hypothetical example of how appraisal preparation can help reduce delays.
Hypothetical example only: This is for informational purposes only and is not a commitment to lend. Appraisal results, value, repair conditions, loan approval, rates, APR, terms, fees, and closing timelines depend on property details, loan program, underwriting guidelines, and lender requirements.
A buyer is purchasing a home using mortgage financing.
Before the appraisal, the seller provides a list of recent improvements, including a roof repair, HVAC replacement, and kitchen updates.
The listing agent confirms access to the garage, attic, and backyard.
The seller also fixes a loose stair handrail and replaces a broken window before the appraiser visits.
The appraiser reviews the home, compares it with nearby sales, and submits the report to the lender.
The appraisal still depends on market support, but preparation helps reduce access issues, documentation gaps, and avoidable repair delays.
Good preparation does not control the value. It helps the appraiser complete a clearer review.
Loan Factory helps homebuyers compare mortgage options from 240+ wholesale lenders using technology designed to make the home loan process clearer, faster, and more transparent.
If you are preparing for a home appraisal, Loan Factory can help explain how the appraisal may affect your loan approval, cash to close, closing timeline, and available options.
What Loan Factory Offers Homebuyers Access to 240+ wholesale lenders Transparent side-by-side mortgage options to review rate, APR, payment, fees, and cash-to-close TERA technology platform to support pricing, loan comparison, document flow, and loan review Local loan advisor support to help explain appraisal results and next steps No application fee to start reviewing your options Guidance for first-time buyers, repeat buyers, FHA, VA, Conventional, USDA, Jumbo, and other available programs depending on eligibility Support before you shop, make an offer, respond to appraisal results, or move toward closing A home appraisal can affect the loan process.
Loan Factory helps you compare mortgage options and understand what may happen next.
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Read more: Source: Author Box Written by: Loan Factory Mortgage Education Team
Loan Factory is a technology-powered mortgage platform helping homebuyers compare mortgage options from 240+ wholesale lenders. Our mortgage education content is designed to help buyers understand appraisals, property requirements, mortgage approval, closing timelines, affordability, and the home loan process before applying.
Compliance Disclaimer This content is for informational and educational purposes only and is not a commitment to lend. Appraisal requirements, appraisal results, property eligibility, repair conditions, loan approval, program availability, rates, APR, fees, terms, payment estimates, and closing timelines depend on borrower qualifications, property details, appraisal findings, lender guidelines, underwriting, investor requirements, and applicable program rules. Not all applicants will qualify. Terms may change without notice.
Loan Factory is not affiliated with or acting on behalf of any government agency. FHA, VA, USDA, Conventional, Jumbo, and other loan programs are offered through participating lender partners, subject to eligibility and underwriting approval.
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FAQ: Home Appraisal Checklist 
