Real estate agents rely on appraisals to help close deals, but there are plenty of misconceptions about how the process actually works. Believing these myths can lead to frustrated clients, lost deals, and unnecessary stress. Here’s the truth behind four of the most common appraisal myths.
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Many buyers and sellers assume that if a home is under contract for a certain price, the appraisal will confirm that number. But an appraiser isn’t verifying the sale price—they’re determining market value based on comparable sales, property condition, and market trends. The two numbers can align, but they don’t always.
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Sellers often expect a return on every dollar spent upgrading a home, but not all improvements impact appraised value. While kitchen remodels, additional square footage, and updated bathrooms can boost value, items like high-end landscaping, luxury fixtures, or a brand-new hot tub may not add much. The key is understanding what buyers in the local market are willing to pay more for—not just what looks impressive.
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It’s a common belief that appraisers "decide" what a home is worth. In reality, appraisers interpret the market based on sales data, condition, and location. The market itself—meaning what buyers have recently paid for similar homes—determines value. An appraisal is an informed analysis, not an arbitrary number.
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If an appraisal comes in lower than expected, many assume nothing can be done—but that’s not always the case. If an agent believes the appraiser missed key details, such as better comparable sales or an error in square footage, a reconsideration request can be submitted. While not every appeal results in a change, providing strong data can sometimes make a difference.