How to Increase a Property Appraisal Value: A Real Story From One of My Deals
Quick Answer
One of the best ways to increase a property appraisal value is to provide the appraiser with the most recent and relevant comparable sales, including pending sales that may be closing soon. Sometimes a few extra days of research and timing can make a significant difference in the final appraised value.
After more than 25 years of investing in real estate, I’ve learned that appraisals are not just about the property itself. They are about the evidence supporting the property’s value.
Recently, I was training our acquisitions and operations team using a real property I am currently trying to sell. The lesson was simple:
How do you improve a property appraisal value without changing the property?
The answer surprised many people.
The Property Appraisal Challenge
The property was under contract, and we knew the appraisal would play a major role in the buyer’s financing.
Like most investors, I started by pulling comparable sales.
Several recent sales in the neighborhood had closed between $274,000 and $279,000.
At first glance, that seemed helpful.
But after thousands of transactions, I’ve learned something important:
The first comparable sales you find are not always the best comparable sales.
When learning how to increase a property appraisal value, you need to dig deeper.
Looking Beyond Closed Comparable Sales
Most investors stop after finding three or four closed comparable sales.
I don’t.
I continued searching and found something interesting.
A property in the same market was pending at approximately $336,000.
That immediately got my attention.
Why?
Because a $336,000 sale could significantly influence the market value of similar properties in the area.
The challenge was that it had not closed yet.
The Research That Most Investors Never Do
Instead of moving on, I decided to investigate further.
I located the listing agent through Zillow and sent a simple text message.
I asked:
“Has the property closed yet?”
A few minutes later, the agent responded.
The property was scheduled to close on the 17th.
That information changed everything.
How Timing Can Increase an Appraisal
At the same time, the appraiser for our transaction wanted to inspect the property before the pending sale closed.
Most people would simply move forward.
Instead, I asked myself an important question:
Would it make sense to delay the appraisal by a few days?
If the pending sale closed as scheduled, it would become a closed comparable sale.
And in real estate appraisals, recent closed sales often carry the most weight.
Waiting just a few days could provide the appraiser with stronger evidence supporting a higher valuation.
That is exactly the type of strategy experienced investors use when trying to maximize a property’s appraised value.
How to Improve a Property Appraisal Value
If you are wondering how to increase a home appraisal or improve a refinance appraisal, here are a few strategies I use regularly:
1. Find the Best Comparable Sales
Don’t just use the easiest comps to find.
Look for:
- Similar square footage
- Similar condition
- Similar age
- Similar lot size
- Similar location
The better the comparable sales, the stronger your case.
2. Avoid Weak Comparable Sales
Not every sale helps your appraisal.
Some properties sell below market value because of:
- Major repairs
- Deferred maintenance
- Distressed sellers
- Functional issues
Including poor comparable sales can lower the appraised value.
3. Research Pending Sales
This is one of the most overlooked appraisal strategies.
Pending sales often show where the market is heading.
If a pending property is scheduled to close soon, it may become the strongest comparable sale available.
4. Contact Listing Agents
Many investors never think to do this.
A quick call or text can help verify:
- Closing dates
- Contract activity
- Market demand
- Potential comparable value
Sometimes one conversation provides information that can influence an entire appraisal package.
5. Provide Information to the Appraiser
Appraisers cannot analyze data they don’t have.
Whenever appropriate, provide:
- Comparable sales
- Pending sales
- Market analysis
- Property upgrades
- Renovation details
The goal is not to influence the appraiser improperly.
The goal is to ensure they have complete and accurate information.
The Biggest Lesson From This Real Story
The lesson I shared with my team that day was simple.
Most investors focus on the property.
The best investors focus on the property and the data.
In this case, one text message revealed a pending sale that was nearly $60,000 higher than many of the recently closed comparable sales.
That information could potentially have a major impact on the property’s appraised value.
Not because we changed the house.
Not because we renovated anything.
But because we found better market evidence.
Final Thoughts
If you’re trying to increase a property appraisal value, don’t assume the appraiser will automatically find every piece of relevant information.
Do your homework.
Study the market.
Research pending sales.
Talk to agents.
Understand what is about to close.
After more than 25 years in real estate and thousands of transactions, I’ve found that some of the biggest appraisal wins come from preparation, timing, and market knowledge.
Sometimes the difference between an average appraisal and a great appraisal is not the property itself.
It’s the research you do before the appraiser ever arrives.
Frequently Asked Questions
How can I increase my property appraisal value?
Focus on providing strong comparable sales, documenting improvements, researching pending sales, and making sure the appraiser has access to the most recent market data.
Can pending sales help an appraisal?
Yes. Pending sales can help demonstrate current market trends and may become strong comparable sales once they close.
Should I give comparable sales to the appraiser?
Yes. Providing relevant and accurate comparable sales can help ensure the appraiser has complete market information.
Can delaying an appraisal increase the value?
In some situations, yes. If a strong pending sale is about to close, waiting a few days may allow that sale to be included as a closed comparable.
What Happens Next?
The story isn’t over yet.
Tomorrow, I’m meeting the appraiser at the property.
And yes, I’m showing up prepared.
I’ve put together a package that includes:
- A detailed RPR (Realtors Property Resource) report
- Recent comparable sales
- Information on the pending transactions we discussed
- Notes regarding upcoming closings that may impact value
- Property improvements and relevant market data
I’ve also prepared a cover letter summarizing why I believe these comparable sales are important and why they should be considered as part of the appraisal process.
Now, to be clear, my goal is not to tell the appraiser what value to assign. Appraisers are independent professionals, and I respect their role.
My goal is simply to provide the most complete and accurate information possible so they can make an informed decision.
And yes, there may be a box of cookies waiting for them as well.
Not as a bribe.
Just as a thank you for taking the time to evaluate the property.
After thousands of transactions, I’ve learned that preparation matters. The investors who consistently achieve the best results are usually the ones who come prepared with data, research, and a professional presentation.
We’ll see where the appraisal comes in, but regardless of the final number, I know we’ve done everything possible to provide the appraiser with the best information available.
That’s a lesson every investor can apply to their next purchase, refinance, or sale.
External Links
- Fannie Mae Appraisal Guidelines
- Freddie Mac Appraisal Resources
- National Association of Realtors (NAR) Research
Additional Resources
If you want to become better at estimating value, analyzing comparable sales, and making smarter investment decisions, I recommend these articles:
- How I Estimate ARV Using Recent Sold Comps When Analyzing Deals
https://graystoneig.com/articles/how-i-estimate-arv-using-recent-sold-comps-when-analyzing-deals - Real Estate Investment Analysis: How to Run the Numbers Like a Pro
https://graystoneig.com/articles/real-estate-investment-analysis-how-to-run-the-numbers-like-a-pro - Tampa Real Estate Investing Guide
https://graystoneig.com/articles/tampa-real-estate-investing-guide
The better you understand market data, comparable sales, and property analysis, the better prepared you’ll be when it’s time to buy, refinance, or sell an investment property.
