In a fast-paced real estate market like Onondaga County, where homes are often met with multiple offers and rising prices, the home appraisal can be a pivotal moment in the transaction. Whether you’re preparing to sell or looking to buy, understanding what an appraisal is—and how to prepare for it—can make or break a deal.

A home appraisal is a third-party evaluation of a property’s fair market value, typically required by a mortgage lender to ensure the loan amount aligns with the home’s worth. But in a hot market, appraisals can become a sticking point. When bidding wars push sale prices higher, the appraisal doesn’t always keep up—and that can have serious implications for buyers and sellers alike.

Here’s what to expect—and how to make sure you’re prepared.

1. What Is a Home Appraisal & Why Does It Matter?

An appraisal protects both the lender and the buyer. It ensures the home is worth what the buyer is offering and prevents lenders from loaning more than the home is valued at. Even if a buyer agrees to pay over asking, the bank won’t—unless the appraisal supports it.

2. How the Appraiser Determines Value (and What Makes a Good Comp)

Appraisers assess the property’s condition, location, features, and upgrades, and then compare it to similar homes (called “comps”) that have sold recently in the area.

But here’s the key: not all comps are created equal. Just because your neighbor’s house sold doesn’t mean it’s a great comparison. Appraisers look for homes that are truly similar in square footage, layout, lot size, condition, age, and location. A four-bedroom colonial on two acres doesn’t compare well with a nearby three-bedroom ranch-style home on a city lot—regardless of proximity.

That’s why real estate professionals help prepare data for buyers submitting offers, and sellers to determine list price, ensuring the most accurate picture of a home’s value. In neighborhoods like those found across Onondaga County—from city homes in Syracuse to more rural options in Tully or Pompey—this step is critical.

3. Who Pays for a Home Appraisal?

In most purchase transactions, the buyer pays for the appraisal, but it’s the lender who orders it. Costs typically range from $400–$700, depending on the type of loan, in Central New York, and they’re usually non-refundable, even if the deal falls through.

If you're refinancing, you as the homeowner will typically pay for the appraisal. Either way, it's a necessary step to verify value and protect all parties involved.

4. What Happens If the Appraisal Comes in Low?

This is a common concern in today’s competitive market. If the appraisal is lower than the offer price, a few options are on the table:

• The buyer can make up the difference in cash.

• The seller can lower the price.

• The buyer and seller can negotiate somewhere in the middle.

• If the buyer and seller are unable to reach an agreement, either party may choose to terminate the contract.

Appraisal gaps don’t have to derail a deal—but both sides need to be prepared with a plan.

5. What Can Hurt an Appraisal?

Some elements—like market conditions or comparable sales—are outside of your control. But others are very much within it.

Deferred maintenance can raise red flags. For example, a minor roof leak or a lingering plumbing issue can be seen as signs of neglect, even if they’re fixable. Appraisers also take note of incomplete renovations, so if work is underway or scheduled, provide estimates or receipts to show the full picture.

Transparency is key: let the appraiser know exactly what has been done and what’s in progress. A well-documented home tells a story of care and investment.

6. What Increases the Appraisal Value of a Home?

While you shouldn’t rush into renovations just to boost your appraisal, there are a few simple ways to make a good impression and potentially improve your outcome:

• Tidy up outside: Curb appeal counts. Trim bushes, clear clutter, and clean walkways.
• Make it shine: Clean interiors, even small ones, help appraisers see the space clearly and convey pride of ownership.
• Document upgrades: New appliances, bathroom remodels, HVAC updates, flooring, or even new insulation—if you’ve done it, document it. Providing a list of improvements (with receipts if possible) is incredibly helpful.  A good agent will display those upgrades in your listing, ensuring the appraiser can’t miss them.

Not every upgrade increases value equally, so if you’re considering improvements ahead of listing, talk with your real estate agent first about what matters most in your area.

7. What Buyers Should Know About the Appraisal Process

For buyers, the appraisal happens about 2 weeks, give or take, after the offer is accepted. The lender will coordinate the timeline, but buyers should understand that a low appraisal could affect financing, especially if the offer was above asking.

In competitive markets, buyers may offer appraisal gap coverage to bridge the difference between the appraised value and purchase price. While this can strengthen your offer, be prepared to cover the gap if the appraisal comes in low. Sellers may push for more if the gap is large, so having a clear strategy—and an experienced agent—is essential.

8. Can You Challenge an Appraisal?

Yes, though it’s not always successful. If you believe the appraisal missed important details or used poor comps, you can request a reconsideration of value. To do this, you’ll need data—recent comparable sales, a list of improvements, or factual corrections—to back up your case.

Final Thoughts

Appraisals are one of the most important—and least understood—steps in a real estate transaction. Knowing what to expect, how to prepare, and what can influence the outcome helps both buyers and sellers stay a step ahead. In a market as active and nuanced as Onondaga County’s, a little preparation can go a long way toward keeping your deal on track.