Common Appraisal Issues & How to Avoid Them

When buying or selling a home in Texas, the appraisal can make or break a deal. An appraisal that comes in lower than the contract price can delay closing, force renegotiation, or even cause the contract to fall apart. Understanding common appraisal issues—and how to avoid them—can help keep your transaction smooth.

1. Overpricing the Home

• The Issue: Sellers often list homes based on emotions or upgrades they’ve made, rather than market data. Appraisers, however, base their valuation on recent comparable sales.

• How to Avoid It: Work with a Realtor who pulls accurate comps from your neighborhood and sets a realistic asking price.

2. Lack of Comparable Sales

• The Issue: In unique neighborhoods or rural areas, it may be difficult for appraisers to find comparable homes. This can result in a conservative appraisal.

• How to Avoid It: Provide your appraiser with recent, relevant comps your Realtor has gathered.

3. Condition of the Home

• The Issue: Peeling paint, old roofing, outdated HVAC, or obvious deferred maintenance can lower an appraised value.

• How to Avoid It: Take care of visible repairs and maintenance before listing. Even small fixes (like broken fixtures or leaky faucets) matter.

4. Unpermitted Additions or Conversions

• The Issue: If you’ve added square footage, a garage conversion, or an outdoor structure without permits, the appraiser may not include it in the value.

• How to Avoid It: Always ensure proper permits are pulled and available for review.

5. Market Shifts

• The Issue: In fast-moving DFW markets, rising or falling home prices can cause appraisals to lag behind current demand.

• How to Avoid It: If comps don’t reflect current conditions, your Realtor can provide supporting market data and trends to the appraiser.

6. Appraiser’s Local Knowledge

• The Issue: Not all appraisers are equally familiar with every neighborhood. A lack of local insight can affect valuation.

• How to Avoid It: Make sure your lender assigns a local appraiser familiar with Denton, Tarrant, or Collin County markets.

Key Takeaways

• Set a realistic asking price using comps.

• Complete repairs before listing.

• Keep documentation on upgrades and permits.

• Work with a Realtor who knows how to prepare and present data to the appraiser.

Final Thoughts

Appraisals are not just a formality—they’re one of the most important parts of the home selling process in Texas. By being proactive, you can reduce surprises and keep your deal on track.