If you’ve ever gotten a phone call from a client when an appraisal gap interrupts an otherwise-smooth transaction, you know that they’re experiencing a lot of feelings, and they have a lot of questions:
- What happened?
- Why would the appraiser say that?
- What’s wrong with the house?
- Is the buyer going to cancel?
- What can we do?
You can avoid all of that drama, however, by being an active participant in the appraisal process. It’s not about pushing the value or convincing the appraiser but, rather, about helping to guide the narrative with better data and more facts.
After all, appraisers are only as good as the information they have in front of them.
Why appraisals come in low
On the most basic level, appraisers are looking at the nuts and bolts of the home (number of bedrooms and baths, size of lot) and the bells and whistles layered on top (fixtures, finishes, updates). That means that they need to know when there are differentiators that make one home more valuable than another.
As the listing agent, you’ve been through the home with a fine-toothed comb, and you know the market (and comparable properties) inside and out. That means you’re the person who’s best qualified to point out those important differentiators.
Among the things that can cause an undervalued appraisal are:
- Missed upgrades and undervalued improvements
- Poor or incomplete comps
- Lack of hyperlocal knowledge, especially in mixed or transitional neighborhoods
- Time constraints
Creating a process that allows you to help the appraiser understand each listing more fully will help you add value to every transaction. That means leaning in to organization, information and communication.
How agents can help appraisers get it right
While it’s not your job to conduct the appraisal, it is your job to help ensure the appraiser has the information they need to correctly evaluate your listing.
There’s a reason “coffee and comps” works. When you show up early with Starbucks and an organized folder of relevant information, it signals professionalism, respect for the appraiser’s time and preparation.
Here’s what to include:
Curate your comps
Help the appraiser understand the impact of current and recent property sales:
- Provide three to five highly relevant comps, not a 20-page MLS printout
- Include the reason that each comp was selected
- Highlight adjustments the appraiser might otherwise miss
- Address potential “problem comps” so that the appraiser has full context
Create a clean, itemized improvements sheet
Help the appraiser understand what the homeowner has done to add value to the property:
- Include dates, costs and scope of work
- Separate cosmetic updates from major system upgrades
- Include permits, if applicable
- Frame upgrades in terms of market valuation impact, not just dollars spent
Walk the property with intention (if allowed)
Help the appraiser notice hidden sources of value:
- Highlight improvements that aren’t obvious
- Add context: “This backs to green space” or “This street carries a premium”
- Keep it concise and professional. Don’t oversell
Tell the story the data can’t
Help the appraiser put the property in proper perspective:
- Describe buyer demand trends for this specific property type
- Provide multiple-offer context (if applicable)
- Explain unique location advantages that don’t show up cleanly in comps, including new infrastructure, amenities, commercial developments, employment hubs
Through it all, it’s important to respect the line between advocating for your clients’ property and drawing conclusions for the appraiser. Make it easy for the appraiser to agree with you rather than making the experience adversarial or pressure-filled.
Advice from the experts
I asked friends and colleagues from the Sofi Real Estate Advisory Council for their best thoughts and strategies for dealing with appraisals. Here’s what they said, edited for brevity, clarity and to protect client privacy:
Information
Put together an appraisal packet for listings, especially in condo neighborhoods where unit differences — quiet courtyard versus busy street exposure, parking allocation, floor plan idiosyncrasies and updates — aren’t obvious on paper. —D’Ann Melnick, eXp Realty
The biggest appraisal gaps usually come from incomplete information, not bad appraisers. Make sure the appraiser has every relevant comp, every improvement and neighborhood context they can’t pull from the MLS — the goal is eliminating blind spots, not influencing value. —Scot Drucker, Compass
Don’t pad comps or cherry-pick data. Bring the strongest comparable sales available, a list of upgrades with receipts or documentation when possible, and context a 30-minute walkthrough might miss. Meet the appraiser at the property if possible, confirm Supra access ahead of time and treat them with respect. —Krystopher Benyamein
No two properties are truly comparable — differences in location, architecture, craftsmanship and design make valuation more nuanced than square footage or recent sales alone. Prepare a comprehensive valuation package: comps, a detailed inventory of visible and behind-the-scenes improvements, floor plans, market data, neighborhood insights and every offer received to demonstrate true demand. The goal is providing context, not influencing value. —Kristina Gershteyn, Team KG Homes at Robert Defalco Realty
Comps
For custom or new construction properties, provide the appraiser with carefully selected comparable sales, improvement details and the market context used when originally pricing the listing. Helping tell the story of why those sales matter is as important as choosing the right comps. —Jessica Foote, CEO and broker
When comps are wrong, submit a polite, professional and detailed Reconsideration of Value outlining specific errors and why the appraiser’s comps weren’t accurate matches — with supporting data for the alternatives. Make it as easy as possible to agree, and as hard as possible to disagree, with your position. —Janie Coffey, Luxury Accelerator
Pricing
Strong pricing and local expertise reduce appraisal issues but don’t eliminate bad appraisals. Respond with facts, context, professionalism and a clear strategy. Share your own market reports with the lender and appraiser. —Heather Herr, CEO, Private Real Estate Collection and Team Herr
Protect a property’s value long before the appraisal, through strategic pricing, presentation, marketing and positioning. If an appraiser may not immediately recognize what the market saw, prepare an organized case documenting improvements, buyer demand and neighborhood nuances. The appraisal isn’t where value is created — it’s where value is validated. —Abby Greenberg, Compass
Messaging
Delivery matters as much as the message when communicating with appraisers. Any hint of condescension or pressure can backfire — an appraisal is one person’s opinion, so make sure that person likes you. —Alley Buscemi, owner, AlleyCo Homes | Compass
Every home has a story you can’t find by searching online. Make sure the appraiser has the necessary details, recent improvements, and neighborhood insights needed to understand why buyers saw the value they did. —Viviana Cherman, SERHANT.
A clean appraisal isn’t about luck. It’s about preparation — and it’s part of your fiduciary duty, especially in the event of tight appraisal gaps, rapidly shifting markets and record-breaking levels of canceled deals.
Troy Palmquist is the founder and principal at HomeCode Advisors. Connect with him on LinkedIn.
