TITLE: Appraisal Came In Lower Than Expected—Now What?
Totally hear you. It’s wild how you can spend a fortune on spray foam, triple-pane windows, ERVs—stuff that actually makes a home feel better to live in—and then the appraiser walks in and gets starry-eyed over a shiny backsplash. I once had an inspector compliment the “character” of a 30-year-old furnace and completely ignore the fact that we’d just put in a whole-house dehumidification system. Go figure.
I can’t tell you how many times I’ve tried to jazz up insulation talk for buyers. “This house is like a thermos!” I’ll say, and you can see them nodding politely while they’re mentally picturing their couch against the accent wall. It’s tough because the benefits of good air sealing or better HVAC aren’t obvious until you live with them, and by then, the deal’s done.
I do think things are inching forward, though. Had a younger couple last year who actually brought a thermal camera to the showing—made my day. They cared more about HERS rating than quartz countertops. But yeah, they’re still the exception.
The appraisal process just feels stuck sometimes. I get that comps are necessary, but it’s like trying to compare apples to oranges when one apple is hiding a turbo engine inside. Maybe someday there’ll be a way to quantify comfort or air quality on those sheets, but for now, we’re stuck playing up the invisible stuff and hoping people catch on.
Anyway, I try to keep a sense of humor about it. If nothing else, it gives me stories to tell when someone asks why I’m so passionate about cellulose.
Honestly, this is exactly what frustrates me about the whole process. We spent thousands on closed-cell spray foam, upgraded to a variable-speed heat pump, and even got a blower door test to prove the house is tight—none of it seemed to matter when the appraiser came through. They barely glanced at the energy bills I printed out. Meanwhile, they spent five minutes talking about the “updated” bathroom tile (which was just mid-range stuff from a big box store).
I get that comps are the standard, but there’s got to be a better way to factor in real efficiency upgrades. The long-term savings on utilities aren’t hypothetical—they’re right there in black and white. It’s wild that a $5k granite countertop can bump value more than $15k in insulation and HVAC work.
Maybe it’s just not “visible” enough for most people? Still, with energy costs going up every year, you’d think buyers (and appraisers) would start paying more attention to what actually saves money over time. Until then, I guess we keep our spreadsheets handy and hope someone cares about HERS scores as much as we do...
It’s wild that a $5k granite countertop can bump value more than $15k in insulation and HVAC work.
That’s the part that gets me too. I’ve seen folks drop serious cash on high-efficiency systems, thinking it’ll boost their appraisal, but unless there’s a direct comp with the same upgrades, it rarely moves the needle. The appraiser’s checklist is still stuck in “what can I see and touch” mode—tile, counters, paint. Energy bills and HERS scores just don’t have the curb appeal for most buyers or lenders yet. It’s frustrating, but until the market shifts, best you can do is document everything and hope you get an appraiser who actually cares about efficiency.
The appraiser’s checklist is still stuck in “what can I see and touch” mode—tile, counters, paint. Energy bills and HERS scores just don’t have the curb appeal for most buyers or lenders yet.
Can’t argue with that. It’s a weird disconnect—people will pay extra for shiny surfaces, but not for what actually makes the place comfortable and efficient. I’ve watched buyers walk right past a new heat pump to admire a backsplash.
- The market’s just not there yet on valuing efficiency upgrades. Frustrating, but true.
- Appraisers are working off comps, and if the comps don’t have those upgrades, it’s tough for them to justify a bump.
- That said, keep every receipt and document. Sometimes you get lucky with an appraiser who gets it—or a buyer who does their homework.
- On the flip side, those upgrades can make your place sell faster, even if the appraisal doesn’t reflect it. Less time on market can save you money in the long run.
It’s not fair, but you’re definitely not alone. Hang in there—eventually the market catches up... just takes longer than it should.
I get where you’re coming from, but I’m not sure it’s as black and white as “the market’s just not there yet on valuing efficiency upgrades.” I’ve actually seen a bit of a shift, at least in my area. Maybe it’s regional, or maybe it’s just the buyers I’ve run into, but there’s been more interest in things like heat pumps and insulation than I expected.
Appraisers are working off comps, and if the comps don’t have those upgrades, it’s tough for them to justify a bump.
That’s true, but isn’t that partly because sellers don’t always highlight those upgrades? I’ve toured open houses where the listing barely mentions the new HVAC or the upgraded windows. Meanwhile, there are glossy flyers about quartz counters and fancy faucets. If we want appraisers (and buyers) to notice efficiency features, shouldn’t we be pushing agents to make a bigger deal out of them?
I get that receipts and documentation help, but I wonder if we’re underestimating how much education is needed on both sides—buyers AND agents. I had an appraiser ask me to walk him through my insulation choices once. He admitted he didn’t know much about R-values, but he was open to learning. That conversation ended up making a difference in my appraisal.
Maybe it’s not fair that you have to do all this extra legwork just to get credit for smart upgrades, but I’m not convinced it’s hopeless. The more people talk about comfort and lower bills (not just “green” features), the more likely it is that buyers will start asking for them—and appraisers will have to catch up.
It’s frustrating for sure, but I wouldn’t write off the value of efficiency upgrades entirely. Sometimes it just takes a little nudge—or a really cold winter—for people to realize what matters.
