Worried your home’s appraisal might come in under the contract price? You’re not alone. In Madison, Danville, and across Boone County, the appraisal can feel like the most uncertain part of buying or selling a home. This guide makes the process clear so you know what appraisers look for, how comps are chosen in our rural market, and what to do if value comes in short. Let’s dive in.
Appraisal basics in West Virginia
Who orders and why
Lenders order appraisals to estimate a property’s market value and manage lending risk. The appraiser’s client is the lender, not the buyer or seller. Appraisers follow professional rules known as USPAP, which are set by The Appraisal Foundation and enforced under state and federal regulations. You can read more about these USPAP standards on The Appraisal Foundation’s site.
Appraisal types you may see
Most purchase loans use a full interior-and-exterior appraisal. Some programs allow a desktop or exterior-only appraisal when risk is lower. In certain cases, a lender may offer an appraisal waiver that relies on an automated valuation model. Lender policies come from national guides like the Fannie Mae Selling Guide and Freddie Mac Seller/Servicer Guide.
Timeline you can expect
After loan application and contract acceptance, the lender orders the appraisal. The appraiser typically schedules and completes the inspection within 3 to 10 business days, then returns the report several days later. Expect about 1 to 2 weeks overall, though rural travel, complex properties, or local workload can make it shorter or longer.
FHA and VA specifics
FHA and VA appraisals add minimum property standards focused on safety and soundness. FHA appraisals may call out repairs that must be completed before closing, while VA appraisals include a review of Minimum Property Requirements. Learn more from the HUD FHA Single Family Housing Policy Handbook and the Department of Veterans Affairs appraisal guidance.
How Boone County comps are chosen
Sales comparison approach
For most single-family homes, appraisers rely on the Sales Comparison Approach. They compare your home to recent closed sales and adjust for differences to estimate value. For a deeper look at how appraisers develop residential opinions of value, see the Appraisal Institute’s guidance.
Geography and timing
In urban areas, comps usually come from the same neighborhood. In Boone County’s rural market, appraisers may use a wider area, such as similar parts of the county or areas with comparable access routes. Most try to use sales within the last 3 to 6 months. When inventory is thin, they can use older sales if they explain and support any time adjustments.
Physical and functional match
Appraisers look for similarity in finished living area, bed/bath count, age, condition, foundation type, presence or absence of basement, garage or carport, and lot size. They also weigh functional utility such as layout, modernized kitchens or baths, finished basements, and usable outdoor space.
Sources appraisers use
Common sources include the local MLS, Boone County property records and deeds, and documented listing histories. Appraisers also lean on local knowledge from brokers and county data to verify details. Each adjustment must be supportable using local market evidence and the appraiser’s professional analysis.
Rural nuances in Madison and Danville
Because sales are spread out, you may see comps from a larger radius than you’d expect in a city. Unique features like acreage, outbuildings, or well and septic systems can justify larger adjustments. With scarcer inventory, the appraiser may reference older data and must explain any time or market trend adjustments that apply.
What appraisers look at on site
Exterior factors
Expect the appraiser to note lot size, topography, drainage, exterior condition, roof age indicators, driveway and parking, fences, decks and porches, and any outbuildings or pools. Visible structural issues or safety hazards will be documented, especially on FHA or VA assignments.
Interior and systems
Inside, the appraiser measures gross living area, counts rooms, and evaluates layout, finishes, and overall condition. They record the presence, type, and apparent age of HVAC, plumbing, and electrical systems. Appraisers are not mechanical experts, but they will note nonfunctioning systems or obvious defects.
Photos, sketches, and report
A standard report includes interior and exterior photos, a floor-plan or GLA sketch, a map of sales used as comps, and a grid showing adjustments. The report outlines why comps were chosen and how the appraiser reconciled to a final value.
Appraisal vs. home inspection
An appraisal estimates market value. A home inspection investigates condition in detail. Appraisers are not inspectors and do not perform invasive testing. Major issues observed will be noted, but you should still rely on a licensed home inspector for a full condition assessment.
Seller steps to support value
Prepare documentation
Provide a packet with receipts and permits for improvements such as roof replacement, HVAC, windows, or kitchen and bath updates. Include any recent survey and a list of recent, relevant Boone County sales you believe are comparable, with a sentence explaining why each one is similar.
Fix safety and first impressions
Before the appraisal, handle quick wins:
- Tidy the exterior. Mow, trim, and remove debris.
- Repair loose steps or handrails and any broken windows.
- Address obvious leaks, damaged flooring, or visible electrical hazards.
Make targeted updates
Focus on small, high-impact items rather than big renovations. Neutral paint, deep cleaning, working fixtures, and minor hardware updates go a long way. Appraisers will consider overall condition, but cosmetics alone rarely justify large value differences unless they materially change condition relative to comps.
Present well on appraisal day
Keep utilities on. Ensure access to all rooms, attic, crawlspace, water heater, furnace, and electrical panel. Stage spaces so their use is clear. Have your documentation ready to hand the appraiser. You can offer data, but allow the appraiser to remain independent.
Share data without pressure
It is acceptable to provide an improvement list and a comp worksheet. Do not pressure the appraiser to hit a number. Their role is to reflect the market, not to validate contract price.
If value comes in low
Your options
If the appraisal is below the contract price, you have several paths:
- Renegotiate the price to the appraised value.
- Buyer brings additional cash to cover the gap.
- Seller completes agreed repairs if those items affect value.
- Request a Reconsideration of Value (ROV) with better comps or clarifying data.
- Ask the lender about a second appraisal, if permitted.
- Use financing or appraisal contingencies to cancel if no agreement is possible.
How reconsideration of value works
Lenders follow formal ROV processes guided by agencies like Fannie Mae and Freddie Mac. You submit additional evidence, such as overlooked recent sales or clearer neighborhood boundaries. The lender or appraisal management company decides whether to request a desk review or second opinion. Success depends on the quality of the new data and whether the original report missed material market evidence.
FHA/VA repairs vs. value gaps
With FHA or VA, repair requirements are separate from value questions. If the appraiser flags repairs for safety or minimum property standards, those items often must be completed before closing, even if you agree on price changes. For program details, consult the HUD FHA handbook and the VA’s appraisal guidance.
Local tips for Madison and Danville
- Expect a wider geographic search for comps than you might see in a city. The appraiser should explain why specific Boone County areas are comparable to your location.
- If your property includes acreage or outbuildings, gather information on utilities, easements, well and septic, and any recent inspections. Usable acreage can be weighed differently than raw acreage.
- When market activity is slow, older sales may still be used. The appraiser will account for market conditions if prices have moved up or down.
- Neutral updates and clean presentation help convey condition, which can influence how your home compares to the chosen sales.
Work with a local guide you trust
When you understand how appraisals work, you can approach the process with confidence. Our family team serves Madison, Danville, and nearby communities with clear education and responsive support from contract to closing. If you are preparing to sell, we can help you assemble a smart improvements list, organize documentation, and share relevant local comps with the appraiser.
If you are buying, we will help you structure appraisal contingencies, evaluate comp data, and navigate ROV requests when needed. Ready to step forward with a steady partner by your side? Reach out to Crystal Reeves-Paynter to talk through your goals or to request a free home valuation.
FAQs
What is the purpose of a lender appraisal in Boone County?
- Lenders use appraisals to estimate market value and manage risk, inform underwriting and LTV, and identify potential safety or program issues on FHA or VA loans.
How are comparable sales chosen in rural areas like Madison and Danville?
- Appraisers prioritize similar homes nearby, but in rural markets may widen the radius and time frame, then apply supported adjustments for differences.
What do appraisers inspect during a full appraisal?
- They review exterior and interior condition, layout, room counts, GLA, systems presence, and visible safety or structural concerns, plus photograph and sketch the property.
Can I give the appraiser my list of improvements and comps?
- Yes. Provide receipts, permits, and a short comp list with reasons they fit. The appraiser must remain independent and cannot be pressured to meet a price.
What happens if the appraisal is lower than my contract price?
- Common options include renegotiating price, buyer adding cash, completing certain repairs, requesting a reconsideration of value, seeking a second appraisal, or canceling under contingency.
How do FHA and VA appraisals differ from conventional?
- FHA and VA include minimum property standards and may require repairs before closing. Conventional appraisals focus on market value without those specific program repair rules.
Do appraisers use active listings or pending sales in Boone County?
- Closed sales drive value conclusions. Active and pending listings can provide context for trends, but they are not the primary basis for value.
