11 Things That Can Quietly Drag Down A Home Appraisal, Including Small Repairs Sellers Ignore Until The Lender’s Appraiser Walks Through

Picture a seller who has priced the house with care, only to see the lender’s appraisal come in lower. The culprit is often not the kitchen or the paint color. It is the small repairs that sat on the to-do list for years.

A small brown house on a sunny day, the kind of home an appraiser walks through.

An appraiser walks through the home, notes its condition and compares it with recent sales. Anything that looks neglected, unsafe or out of step with the neighborhood can shave dollars off the number.

Here are 11 things that can quietly drag down an appraisal, drawn from the Fannie Mae Selling Guide and a HomeLight guide that quotes real estate professionals and was updated in September 2026. Every market is different, so treat these as common flags, not guarantees.

Neglected Maintenance Matters More Than A House’s Age (HomeLight, 2026)

HomeLight quotes Spurgeon saying, “In our market, age is not as important as condition.” The guide’s example is a well-kept 120-year-old home that can compete with much newer ones.

The takeaway is simple. Appraisers deduct for poor upkeep, so a tidy older house can beat a worn newer one.

A Roof Near The End Of Its Life Can Cost You The Price Of A New One (HomeLight, 2026)

Lundquist, quoted in the HomeLight guide, says, “If a roof is in need of replacement, though, they’re probably going to deduct the cost of the roof.” Spurgeon adds that interior leaks can certainly deduct from a home’s value.

The guide also notes that FHA appraisals require a roof with a remaining physical life of at least two years.

Cracked Or Failing Foundations Are A Red Flag (HomeLight, 2026)

Ford, quoted in the HomeLight guide, says cracked or failing foundations can hurt value, and that slab foundations are lower quality than poured concrete.

Foundation trouble is one of the repairs a buyer’s lender will not ignore, so sellers who know about a crack should get it looked at before the appraiser arrives.

Wood Rot And Termites Draw Attention From Lenders (HomeLight, 2026)

Miller, quoted in the HomeLight guide, says VA, FHA and some conventional loans require attention to wood rot and termite issues.

A sale that depends on a loan can stall if those items surface late. Treat soft wood and signs of insects as priorities.

Chipped Paint Has To Be Scraped And Repainted For Some Loans (HomeLight, 2026)

Miller says in the HomeLight guide, “Any chipped paint needs to be scraped and repainted for FHA and VA loans.”

It is a small job compared with a roof, yet it can hold up a closing. Homes built before 1978 deserve extra care with any scraping, because older paint may contain lead.

A Stove That Does Not Work Can Be A Problem On FHA Loans (HomeLight, 2026)

The HomeLight guide says that in FHA appraisals, appliances that stay with the home must work. Miller says the stove or oven is the one that matters most for most loans.

Before listing, test every burner and the oven. It is a free check that can save a headache.

Minor Condition Items Still Get Reported (Fannie Mae Selling Guide)

The Fannie Mae Selling Guide lists minor conditions such as worn floor finishes or carpet, minor plumbing leaks, holes in window screens, missing handrails and cracked window glass. Properties rated C1 through C5 are eligible as is when conditions are minor and do not affect safety, soundness or structural integrity.

Still, the guide says minor conditions must be reported, and the Additional Comments section must address needed repairs. A handful of small fixes can keep those notes short.

Obvious Deferred Maintenance Moves A Home Down The Condition Scale (Fannie Mae Selling Guide)

In the Fannie Mae Selling Guide, C4 homes feature some minor deferred maintenance, while C5 homes show obvious deferred maintenance and need some significant repairs. C3 homes are described as well maintained with limited physical depreciation from normal wear and tear.

At the bottom, C6 covers conditions severe enough to affect safety, soundness or structural integrity. A C6 property is not eligible for sale to Fannie Mae until repaired to at least C5.

Lacking A Two Car Garage Can Weigh On Value In Some Markets (HomeLight, 2026)

Ford says in the HomeLight guide, “One is better than none, but two is the market expectation for housing built in the 1960s and later.”

Sellers cannot add a garage before an appraisal, but they can keep the one they have clear, tidy and in working order.

Bedroom Problems Can Trim The Count (HomeLight, 2026)

Miller puts the minimum bedroom size at 70 to 80 square feet, with a window and a door, according to the HomeLight guide. Ford says bedrooms beyond three rarely add value in Los Angeles.

A den with no closet or window may not count the way a seller hopes. Check before advertising a bedroom total.

Unpermitted Work And Code Violations Can Surface At The Walk Through (HomeLight, 2026)

March, quoted in the HomeLight guide, says appraisers do not check codes, but they must report violations they find. Examples include unpermitted additions and an overloaded electrical panel.

The guide adds that some counties require removal or retroactive permits for illegal additions before a sale. Sellers should gather permits for past projects.

Two more issues deserve a mention. The HomeLight guide says a pool in disrepair matters, because appraisers must report defects that make a pool unusable and pools must be operational. It also lists busy streets, train tracks, airports and poor curb appeal as neighborhood and exterior concerns.

The Fannie Mae guide adds that when an appraisal notes infestation, dampness or settlement, the appraiser must comment on the effect on value and marketability, and the lender must then provide evidence the condition was corrected or a professional report stating it poses no threat of structural damage.

So what should a seller do? Walk the house with a notepad and list every small repair. Fix the roof leak, scrape the paint, test the appliances and gather permits. Then make sure the home is clean and the lights are on when the appraiser arrives.

None of this guarantees a number, but it removes easy reasons to mark a house down. A few weekends of fixes can protect the price you worked hard to earn.

Willow and Hearth