From closing costs to HOA fees, hidden fees can affect your home-buying budget. Learn what to expect and how to budget effectively for a smooth closing.
When you put your home on the market, you’re really trying to convince three people: the buyer, the agent, and the appraiser. Most sellers focus on the first two, crafting the perfect listing, staging beautifully, and negotiating with buyers, but it’s the third person who can quietly determine whether your sale succeeds or stalls.
The appraiser’s job isn’t to take sides; it’s to protect the lender by confirming your home’s value matches the sale price. To get a clearer picture of how appraisers determine your home’s value, here are the three main factors they focus on during the evaluation process.
1. The date of sale. Timing plays a major role in an appraisal. Appraisers focus on the most recent comparable sales because they best reflect current market conditions. Since prices can shift quickly with changing inventory and interest rates, the latest data gives the most accurate view of your home’s value.
“Appraisers focus on facts, not feelings: date, distance, and similarity drive decisions.”
2. The proximity of comparable sales. Appraisers look closely at location, not just the neighborhood, but also how close comparable homes are to yours. They usually focus on sales within a one-mile radius, stretching farther only in slower or rural markets. Boundaries like freeways, parks, or major roads can separate one market area from another and affect value.
So if you’re comparing your home to one several miles away that sold for more, it’s probably not an accurate reflection of your property’s true worth.
3. Similarity in property type and features. Appraisers compare “like with like,” meaning your home is measured against others with similar size, style, age, and condition. A single-story rambler, for example, isn’t directly comparable to a two-story home, even in the same neighborhood. Different designs attract different buyers, so appraisers give more weight to properties that closely match yours. The more similar nearby sales are, the more accurately they’ll shape your home’s appraised value.
Knowing what appraisers look for helps you price your home smartly and see it the way lenders do, based on real numbers, not guesswork. When you keep an eye on timing, location, and similar homes nearby, you’ll set the right expectations and boost your chances of a smooth, successful sale.
If you’d like a free market evaluation or insight into recent sales near you, reach out today at (801) 285-0521 or Justin@JustinUdy.com. I’d love to help you understand your home’s true value and explore your best options in today’s market.
