Why Appraisals Can Make or Break Your Real Estate Deal ?

[Susanna Hayrapetyan]

When you’re in the middle of a deal, it’s easy to think of the appraisal as just another box to check before closing. But in reality, the appraisal can be one of the most pivotal steps in the entire process.

I learned this firsthand when I was working on a refinance for a small rental property. Everything was lined up: the lender was ready, tenants were stable, and my numbers looked solid. Then the appraisal came in lower than expected — not dramatically, but just enough to throw off the loan terms. Suddenly, my leverage was gone, and I had to bring more cash to the table than I’d planned.

That experience taught me two things:

The appraisal can shift the financial landscape of your deal overnight.

A higher-than-expected appraisal can give you instant equity and better loan terms. A lower one can squeeze your ROI, change your financing options, or even kill the deal.

Appraisals aren’t just about value — they influence strategy.

A strong appraisal can open the door to refinancing opportunities, better loan-to-value ratios, or creative ways to use equity down the road. On the other hand, a weak one might mean adjusting your hold period or pivoting your exit strategy.

So what can investors do?

Know your comps before the appraiser does. Understand the local market and have comparable sales ready.

Be present (when allowed). Walking the property with the appraiser gives you a chance to highlight upgrades or improvements.

Keep records. A binder with rent rolls, renovation receipts, and maintenance logs can support your case.

Plan for variability. Don’t build a deal so tight that one unexpected appraisal number destroys it.

At the end of the day, appraisals are more than paperwork — they’re leverage points that can make a good deal great or turn a promising project into a struggle. As investors, we can’t control every outcome, but we can prepare, present, and plan for the role appraisals play in shaping our deals.