APPRAISAL CAME IN LOWER THAN EXPECTED—NOW WHAT?
I get where you’re coming from, but I’ve actually seen the opposite happen in a few high-end neighborhoods. Sometimes, those “invisible” upgrades—like radiant floor heating or whole-house air filtration—do get noticed, but only when the buyers are really tuned in. I remember touring a place last year where the appraiser actually called out the geothermal system as a premium feature, and it nudged the value up a bit. Maybe it’s just luck of the draw with who you get?
The more subjective stuff—like indoor air quality or thermal comfort—just doesn’t fit neatly into their formulas.
That’s true for most markets, but in luxury segments, buyers (and sometimes appraisers) seem more willing to assign value to things that aren’t just square footage or bedroom count. It’s not consistent, though. I do think there’s a tipping point—once enough homes in an area have these upgrades, suddenly they become “expected” and start showing up in comps.
Still, I wouldn’t bank on it if you’re in a neighborhood where everyone’s running 90s HVAC and single-pane windows. Sometimes it feels like you’re paying for comfort and peace of mind more than resale value... at least for now.
Sometimes it feels like you’re paying for comfort and peace of mind more than resale value... at least for now.
That’s a point I keep circling back to. When I’m working on custom homes, clients often ask if features like advanced insulation or triple-glazed windows will “pay off” in an appraisal. It’s tricky—those upgrades are huge for daily living, but unless the market’s caught up, it’s hard to quantify their value. I’m curious if anyone’s seen appraisers use energy modeling or HERS scores as part of their process, or is it still mostly just comps and gut feeling?
