How to show improvements to an appraiser when you sell by owner
When a buyer uses a loan, the lender usually orders an appraisal. The appraiser visits, looks around for a short time, and gives an opinion of value. You can't pick the appraiser, and you don't set the number. You can make sure they know what you've done to the house.
Who is the appraiser working for?
The lender, not you and not the buyer. The appraiser is meant to be independent, so don't try to persuade. Offer facts, and let them decide.
You don't have to be there, but you may be able to be. The Appraisal Institute says homeowners can usually accompany appraisers on the visit, and that appraisers welcome information that helps them reach a reliable opinion of value. It suggests checking with the lender first. Because the lender controls the order, ask the buyer or the lender how contact with the appraiser should work in your deal.
What to prepare
Freddie Mac suggests a one-page bulleted list of the improvements you've made, with the dates you completed them. It helps the appraiser notice things during a short visit. Build yours like this.
- The list. One page. Each line: what was done, the year, and who did it.
- The proof. Behind the list, in the same order: invoices, receipts, contractor names, warranties.
- Permits. For work that needed one, such as an addition, a finished basement, or major electrical or plumbing work. Your city or county building office can usually look up permits by address.
- Photos. Before and after, if you have them. Helpful for work hidden behind walls.
An example of a list line:
| Year | Improvement | Done by | Proof |
|---|---|---|---|
| 2021 | New roof, architectural shingles | Named roofer | Invoice, warranty |
| 2023 | Kitchen remodel, new counters and cabinets | Named contractor | Invoice, permit |
| 2024 | Replaced furnace | Named HVAC company | Invoice, model label photo |
Only list what's real. Leave out guesses. If you don't know a year, say "before 2014, when we bought."
Whether to show costs is up to you. Costs are not the same as value, and the appraiser forms their own view.
How to hand it over
- Bring a printed copy on the day and offer it at the start. Or leave one on the counter with the list on top.
- Walk them to the improvements if you're allowed to be present. A short "we replaced these windows in 2022" is enough. Then step back.
- Send it ahead if the lender or buyer will pass it on. A link works as well as a PDF.
- Keep private things out. No account numbers, alarm codes or lock codes.
Don't hover, push for a number, or argue. Appraisers notice, and it doesn't help.
What an appraiser can and can't consider
An appraiser compares your house to similar homes that recently sold nearby. Your improvements matter as far as they show up in that comparison.
Appraisers look at the home's size and overall condition, the heating and cooling, floors and walls, included appliances, the roof, the foundation, and features like decks, a finished basement or an accessory dwelling unit. Freddie Mac lists these as things an appraiser assesses.
What they can't do:
- They can't count cost as value. A $40,000 project doesn't add $40,000 automatically. What counts is what buyers in your market pay for that feature.
- They can't count what they can't see or confirm. Records help them confirm.
- They can't use your asking price. Value comes from comparable sales and the home's condition.
- They can't weigh what's out of your hands. Location, lot size and market conditions are set by the neighborhood.
The Appraisal Institute also notes that renovations should bring a home up to community norms rather than far beyond them. A heavily upgraded house in a modest area may not get full credit.
If the number comes in lower than you hoped, ask the buyer's lender how to challenge it. Ask your lawyer how a low appraisal affects your contract.