What Could Go Wrong with a Home Appraisal?

(And How to Prevent Surprises That Derail Your Deal)

Whether you're refinancing, selling your home, or settling an estate, the home appraisal is a critical step—and one that can make or break the process.

If you're a homeowner, agent, or attorney working in West Michigan, it’s important to ask:

“What could go wrong with an appraisal?”

Here are the most common issues that arise during home appraisals—and what you can do to prevent them.

✅ 1. The Appraised Value Comes In Too Low

This is the most common (and most stressful) appraisal issue.

If the home doesn’t appraise for the agreed sale price:

• The buyer’s lender may reduce the loan amount
• The buyer may ask the seller to lower the price
• The deal could fall through entirely

This is especially common in fast-moving or bidding-war markets like East Grand Rapids, Ada, or Byron Center, where buyers offer above list price but the data doesn’t yet support it.

💡 Solution: Make sure the appraiser has access to relevant comps, especially recent sales that reflect current market activity.

✅ 2. Mistakes in the Appraisal Report

Even experienced appraisers can make errors like:

• Incorrect square footage
• Missing or misclassified bedrooms, bathrooms, or upgrades
• Using inappropriate comps from less desirable areas
• Incorrect property type or zoning

These mistakes can lead to a value that’s too low—or trigger questions from lenders or attorneys in legal cases.

💡 Solution: Review the appraisal report thoroughly. You’re allowed to challenge errors through a formal reconsideration of value process.

✅ 3. Lack of Good Comparable Sales (Comps)

In neighborhoods with limited recent sales—or in rural parts of Kent County like Sparta, Alto, or Cannonsburg—appraisers may struggle to find accurate comps.

This often leads to more conservative values or broader adjustments that don’t reflect the home’s true worth.

💡 Solution: If you’re aware of nearby sales that are relevant, share those addresses with the appraiser. It can help guide a more accurate valuation.

✅ 4. Access Issues or Incomplete Walkthrough

If the appraiser can’t access certain areas of the home—like:

• The attic or crawlspace
• The garage or basement
• Locked rooms or outbuildings

—they may have to make assumptions or return later, which delays the report and can affect the outcome.

💡 Solution: Make sure the entire property is accessible, well-lit, and safe to inspect.

✅ 5. Unpermitted Additions or Conversions

That beautiful finished basement or enclosed porch may not count toward the appraised value if it was completed without proper permits or fails to meet code.

Appraisers must follow strict guidelines when determining what is included in livable square footage.

💡 Solution: Provide documentation or permit records for all improvements. If a space isn’t permitted, be upfront about it.

✅ 6. Health or Safety Concerns

In certain cases—especially for government-backed loans (FHA, VA, USDA)—health and safety issues can delay or disqualify the appraisal altogether. These include:

• Exposed wires
• Missing handrails
• Water intrusion or mold
• Signs of structural instability

Even in conventional loans, poor condition can result in a lower value or condition-based adjustments.

💡 Solution: Address obvious safety issues before the appraisal. Even small repairs can improve your condition rating.

👉 Final Thoughts

Most appraisals go smoothly—but when they don’t, it can lead to frustration, delays, or financial loss.

In Grand Rapids and across West Michigan, the key to avoiding appraisal problems is preparation:

• Choose a qualified, local appraiser
• Make your home accessible and presentable
• Provide relevant information and documentation
• Review the report and speak up if something’s off

Remember: an appraisal isn’t just a formality—it’s one of the most important parts of your real estate transaction or legal process. Get it right, and the rest gets easier.