If you're refinancing your mortgage, a home appraisal is likely part of the process. Your lender uses the appraisal to determine how much you can borrow, whether you'll need to pay private mortgage insurance (PMI), and what interest rate you qualify for.
A refinance appraisal typically costs $314–424 for a single-family home, with a national average around $357.[1] Appraisal fees for government-backed loans (FHA, VA, USDA) typically run higher because those loans require stricter guidelines and more time from the appraiser.
Below, we'll explain how refinance appraisals work, five steps you can take to get the best result, and what to do if your appraisal comes in lower than expected.
Do you need an appraisal to refinance?
Before you start prepping, confirm whether your refinance actually requires an appraisal. A few programs let you skip it:
- FHA streamline refinance and VA interest rate reduction refinancing loans (IRRRLs) don't require an appraisal.
- Fannie Mae's Value Acceptance program (formerly called appraisal waivers) lets eligible borrowers skip the full appraisal. As of Q1 2025, Fannie Mae expanded eligibility by raising the loan-to-value (LTV) threshold for purchase loans from 80% to 90%.[2] For refinances, Value Acceptance requires a prior appraisal to already exist in Fannie Mae's Collateral Underwriter database, so it isn't available for every property.[3]
- Some lenders may waive the appraisal if you have substantial equity or have recently had one done. It's at their discretion. Ask before assuming.
If none of these apply, a full appraisal is required. The rest of this guide will help you get the most out of it.
5 steps to get the highest refinance appraisal
1. Document every renovation and bring it to the appraisal
This step costs you nothing. Before your appraisal, put together a written home improvement log — with dates, permit numbers, contractor names, and receipts — and hand it to your appraiser at the start of the visit.
Appraisers can only make upward adjustments for improvements they know about. They won't dig through your records or ask what you've upgraded. If you don't tell them, those updates may not be reflected in the final value.
Here's what to document:
- Major systems: roof, HVAC, water heater, electrical panel
- Kitchen and bathroom updates: new appliances, countertops, fixtures
- Flooring replacement
- Additions or square footage changes (permitted work only)
- Energy-efficiency upgrades: windows, insulation, solar
- Any other permitted work
Unpermitted work can hurt your appraisal if discovered, or even cause legal complications when you sell. If you've done unpermitted work, talk to your lender or a real estate attorney before the appraisal.
2. Make targeted upgrades
It's a common misconception that spending money on home improvements before a refinance automatically raises your appraisal. Some improvements reliably move the needle. Others barely register.
What tends to pay off
These are the upgrades that have the highest return on investment (ROI):[4]
| Improvement | Job cost | Resale value | Cost recouped |
|---|---|---|---|
| Garage door replacement | $4,672 | $12,507 | 268% |
| Steel entry door replacement | $2,435 | $5,270 | 216% |
| Manufactured stone veneer | $11,702 | $24,328 | 208% |
| Fiber-cement siding replacement | $21,485 | $24,420 | 114% |
| Minor kitchen remodel (midrange) | $28,458 | $32,141 | 113% |
Keep in mind that cost vs. value figures measure resale value, not appraised value specifically. Appraisers make adjustments for condition and upgrades, but it's not dollar-for-dollar. Over-improving beyond what's typical for your neighborhood rarely pays off in any context.
What usually doesn't help
- Highly personalized finishes (bold colors, niche materials) that appeal to a narrow market
- Full-gut renovations completed right before the appraisal
- Adding a pool (most markets see a negative return)
Before spending anything, consider consulting a local real estate agent, who can tell you what buyers in your specific market are responding to right now, and a licensed appraiser, who can tell you which improvements are likely to move the needle on appraised value vs. just resale appeal.
3. Fix deferred maintenance first
Before you spend anything on cosmetic upgrades, address visible maintenance issues. Appraisers are looking for signs of neglect — not just as aesthetic problems, but as signals that the home may have deeper issues.
Items that can trigger downward adjustments or appraiser red flags:
- Cracked, peeling, or water-stained ceilings (suggests a roof or plumbing problem)
- Damaged flooring or subfloor
- Broken HVAC, water heater, or electrical components
- Leaky faucets, running toilets, or visible water damage
- Mold, mildew, or musty odors
- Crumbling foundation or structural cracks
- Broken windows or doors that don't close properly
Spending $300 to fix a leaky faucet and $200 to patch a ceiling crack is almost always a better use of pre-appraisal money than a cosmetic upgrade.
Here's a pre-appraisal repair checklist:
- Replace any burned-out light bulbs.
- Fix running toilets and leaky faucets.
- Patch visible holes or cracks in walls and ceilings.
- Make sure all doors and windows open, close, and lock properly.
- Confirm your HVAC is operational and replace the filter.
- Clear gutters and address obvious exterior drainage issues.
- Address any mold, mildew, or water staining.
4. Clean, declutter, and let the appraiser do their job
Appraisers are trained to evaluate homes on their structural merits, not their tidiness. But a clean, accessible home makes a real, practical difference. It lets the appraiser measure rooms accurately, see your finishes clearly, and complete the inspection efficiently.
A few things that help:
- Clear all rooms for measuring. Appraisers measure each room for square footage. Furniture or boxes blocking corners can obscure measurements.
- Remove pets and plan for kids. This is practical courtesy. It lets the appraiser move through your home without interruption.
- Declutter kitchens, bathrooms, and living areas. These are the rooms appraisers spend the most time in. A tidy space makes it easier for them to see the quality of your finishes and fixtures.
Cleaning alone doesn't change your appraised value. But a disorganized space can make it harder for the appraiser to observe and credit the quality of what's actually there.
5. Bring comparable sales the appraiser may have missed
Comparable sales (or "comps") are one of the most significant inputs in a refinance appraisal. Appraisers typically look at sales from the past three to six months within a defined radius. But not every sale makes it into the MLS quickly, especially private sales and off-market transactions.
If there are recent sales in your neighborhood that you believe support a higher value, you can bring them to the appraiser's attention. Here's how to find them:
- Search your county's public property records. Most county assessor or recorder websites publish deed transfers and sale prices. Look for sales in the past six months within a half-mile radius.
- Check home value estimator tools. Tools like Zillow's Zestimate or Redfin's estimate can surface recent comparable sales, which you can then look up in public records. Keep in mind that home value estimators can differ significantly from appraised values.
- Talk to a local real estate agent. Agents have direct MLS access and can pull a comparative market analysis (CMA) for your address at no cost. Find a top local agent who can give you a free CMA.
- Print a packet and bring it. Compile three to five comparable sales with addresses, sale dates, prices, and key property details. Hand it to the appraiser at the start of the visit. They aren't required to use your comps, but they are required to acknowledge them.
What to do if your appraisal comes in low
A low refinance appraisal isn't necessarily final. You have a few options.
Request a reconsideration of value (ROV). If you believe the appraiser made a factual error (e.g., wrong square footage, a missed renovation, comps from a different neighborhood), you can ask your lender to submit a formal ROV. You'll need specific evidence, not just a feeling that the value is too low. Note that you can't contact the appraiser directly. Instead, your lender submits the request.
Order a second appraisal. Your lender may allow this, though they're not required to. It makes the most sense if you believe the first appraisal used genuinely poor comps.
Apply with a different lender. A new lender will likely order a new appraisal. If you believe your home's value is substantially higher than the first result, shopping lenders gives you a fresh start.
Postpone and improve. If the low appraisal reflects real condition issues, addressing them and reapplying in 6–12 months may produce a better result, especially if the market is appreciating.
Try to manage your expectations. Appraisers are trained to be independent, and they won't revise a value just because you disagree. Without specific factual evidence (e.g., wrong measurements, missed upgrades, clearly inappropriate comps), a revision is unlikely.
Should you wait for the market to improve?
Appraisals are grounded in recent comparable sales, so market timing does affect your outcome. In a rising market, waiting a few months before refinancing can result in a meaningfully higher appraisal and a lower LTV ratio.
The challenge is that timing the market is genuinely difficult, and rate environments shift. Refinancing when rates are low is often more financially valuable than waiting for a higher appraisal.
If your current LTV is close to 80% — the threshold at which most lenders eliminate PMI — it may be worth waiting a few months for a higher appraisal before refinancing. If you're refinancing primarily to reduce your rate and you're well below 80% LTV already, timing matters less.
A local real estate agent or mortgage professional can give you a real-time read on whether values in your area are trending up or down.
How a refinance appraisal is different from a purchase appraisal
The process is largely the same: a licensed appraiser visits your home, researches recent comparable sales, and submits a written report to your lender. But there are a few key differences worth knowing:
No purchase price anchor. For a purchase appraisal, the appraiser typically knows the agreed-upon sale price. For a refinance, they're working purely from market data, which can sometimes lead to a more conservative appraised value.
You can be present. Unlike a purchase appraisal, you're allowed to be there for a refinance appraisal. That's actually a big advantage. You can walk the appraiser through renovations they might otherwise miss.
You still can't choose the appraiser. Your lender pays an appraisal management company (AMC), which picks an independent licensed appraiser. This is a requirement under the Dodd-Frank Act to prevent conflicts of interest.[5]
What appraisers look at
Some appraisal factors are within your control. Many aren't.
| Factor | Can you influence it? |
|---|---|
| Comparable sales (comps) | Partly; you can flag sales the appraiser may have missed |
| Location | No |
| Square footage | Only through major additions |
| Overall condition and maintenance | Yes |
| Renovations and upgrades | Yes, if documented |
| Market conditions | No, but timing matters |
| Layout and functionality | Partly, through cosmetic updates |
Appraisers also check that your home's systems (e.g., HVAC, plumbing, electrical) are functional. Anything inoperable or flagged as a hazard can meaningfully lower your appraised value.
FAQ
How long does a refinance appraisal take?
The visit itself typically takes one to three hours for a single-family home. The appraiser then delivers the report. It's usually within a few days, though up to 10 business days is standard. From the time your lender orders it, expect the full process to take one to two weeks.
What if the appraisal comes in below my loan balance?
If the appraised value is less than what you owe, your refinance will likely be denied or require significant changes, potentially including bringing cash to closing. A reconsideration of value, a second appraisal, or waiting for market appreciation are your main options.