Tabitha Bruner July 25, 2025
If you’ve had an appraisal done recently and the number came in lower than expected or you’re wondering why your home didn’t sell for what it appraised for, you’re not alone. This is one of the most confusing parts of the real estate process for both buyers and sellers. Here’s what you need to know.
Appraisals Are an Opinion Not a Guarantee
An appraisal is just one licensed appraiser’s opinion of value based on comparable sales at a specific moment in time. It’s not what a buyer is guaranteed to pay and it’s not what a seller is guaranteed to get. It’s a tool not a crystal ball.
Why Appraisals Come in Low
There are a few reasons an appraisal might feel off:
The comps they used weren’t truly comparable (smaller lots, dated interiors, different style)
Market conditions shifted quickly. Appraisals are always looking backward not forward
Unique upgrades or features weren’t fully accounted for
The home was under contract at a lower price during a slower time
There were distressed or off-market sales nearby that pulled values down
So Why Can’t I Sell for What My Appraisal Says It’s Worth?
Because the open market works differently. Buyers don’t make decisions based on appraisals. They go off what they’re seeing in real time, how a home makes them feel and how it compares to other active listings. Demand, timing, competition and even staging matter. The appraisal doesn’t always reflect those factors.
Getting an Appraisal Before Listing? Just Know This
While it can give a starting point it doesn’t mean the market will agree. The appraiser isn’t walking buyers through your home, reading showing feedback or watching how quickly or slowly similar homes are going under contract.
How to Weigh an Appraisal as a Seller
Use it as one piece of the puzzle but not the whole picture. A strong pricing strategy should factor in your neighborhood’s competition, current demand and how your home actually presents. At the end of the day the market sets the value and that value is whatever a buyer is willing to pay and able to finance.
Bottom Line
Appraisals are helpful but they aren’t the final word. If you’ve had one done and the numbers don’t line up with what you’re seeing on the market, talk to your agent. Real-time buyer behavior often tells the story better than any report can.