In real estate appraisals certain red flags may have a major impact on the appraised value of a house. These red-flags alert appraisers to possible issues or factors which could have a negative impact on the property value.

We will discuss some red flags which can have an impact on appraisal values. You will be given new ideas and tips to help you identify these issues.

Structural Issues

An appraisal can flag structural issues such as foundation problems, roof leaks, and major cracks on the walls. These problems not only impact the value of a property, but can also be a safety concern. If there are structural problems, they must be addressed before the appraisal. This will ensure that the valuation is more favorable.

Deferred Maintenance

Property that shows signs of neglect, or a lack of maintenance can cause concern for appraisers. A lack of upkeep such as peeling or worn-out paint, outdated fixtures and systems, or worn-out floors can lower the value. To ensure a well-maintained home, prioritise routine maintenance. Address any needed repairs and prioritize the work before the appraisal.

Outdated or Poorly Maintained Features

Upgrades and renovations are often needed when features that have become outdated or neglected, like old appliances, fixtures or finishes, indicate the need to upgrade or renovate. These features can result in a reduced appraisal value because they may negatively impact the property’s functionality and desirability. Consider updating certain features to improve the appeal and value of your house.

Limited Comparable Sales

The value of a home is determined by the appraisers using comparable sales. In the absence of recent data, or if the comparable properties are few in the area it may be difficult to assess the property’s value. This may result in a conservative appraisal. In such situations, providing more information or comparable sales in nearby areas may be beneficial.

Neighborhood Decline or external factors

Property values can be affected by changes in the neighborhood, or by external factors. A rise in crime, environmental concerns, and proximity to undesirable establishments, for example, can raise alarms during an appraisal. These external influences can have a negative impact on the value of a property, and therefore require more attention to be paid when positioning the home for appraisal.

Un-permitted Renovations and Additions

Appraisers can view negatively any renovations or additions done without the required permits. Unpermitted works raise questions about compliance with the building codes and regulations. This could result in a lower appraisal. For appraisal purposes, it’s important that all improvements receive the proper permits and approvals.

Unique or Unusual Features

Appraisers may be put off by unique features, which can increase a property’s appeal. Unusual or highly personalized features such as unusual room configurations or overly customized renovations may limit a property’s marketability, and consequently its appraisal value. Strive to strike a balance between originality and wide appeal.

Environmental Hazards

The appraisal value can be significantly affected by the presence of environmental hazards like asbestos, mold, lead or radon. These hazards are potentially harmful to health and can be costly to remediate. It is vital to ensure that the property has been inspected and any environmental problems are addressed in order to avoid negative appraisal results.


Knowing the red flags of appraisal value can empower homeowners to take proactive measures. Important factors to consider include structural problems, neglected maintenance, outdated features or features not comparable with other homes, neighborhood decline, additions that were not permitted, unusual features or features, and even environmental hazards.

These red flags are a good indicator of the property value. By making necessary improvements and addressing them, homeowners can maximize it. Before the appraisal, it is best to consult professionals like contractors or real-estate agents to determine and rectify red flags.