July 22, 2021

Home Appraisals in Montgomery County: 8 Things to Know

A home appraisal can make or break your deal. Kevin Grolig breaks down 8 things Montgomery County MD buyers and sellers must know before closing.

A home appraisal is an independent, licensed professional’s opinion of what a property is actually worth, based on recent comparable sales in the area. It matters because when a buyer is financing a purchase, the lender will not hand over a mortgage for more than the home appraises for, no matter what price the buyer and seller agreed to. That means a great contract, a happy buyer, and a happy seller can still fall apart if the appraisal comes in low. I’ve seen it happen more than once here in Montgomery County, and it’s the single biggest wildcard in a financed transaction. If you’re buying or selling in this market, you need to understand how appraisals actually work before you’re staring down a low number with a deal on the line.

Here are the 8 things I tell every one of my buyers and sellers about the appraisal process.

Who actually picks the appraiser?

Nobody involved in your transaction picks the appraiser, and that’s by design.

The appraiser is a neutral, licensed third party. The buyer doesn’t choose them, the seller doesn’t choose them, and neither does the real estate agent or the mortgage lender.
As a buyer, that means you don’t have to worry about a seller lining up a friendly appraiser to inflate the number.
As a seller, you don’t have to worry about the buyer’s lender sending someone out to lowball the value in the buyer’s favor.
Either way, the person walking through the door is there to give an honest, independent opinion of value, not a favor to anyone.

How does an appraiser actually get assigned?

The lender doesn’t call an appraiser directly, they send the order through an appraisal management company.

Once a buyer applies for financing, the lender submits the appraisal order to an AMC (appraisal management company).
The AMC works with a pool of appraisers, often 10 to 20, who are approved to work in a given zip code.
The order goes to the next appraiser in the rotation, who can accept it or pass it down the line.
This is very different from the earlier era when a lender could simply call a buddy appraiser and have them out the next day. Today there’s a firewall between lender and appraiser, which keeps the process genuinely independent.

What comparable homes will the appraiser actually use?

The appraiser is looking for homes that are similar in size and quality to yours, not identical twins.

“Like-kind” doesn’t mean same builder, same floor plan, or same architectural style.
What matters more is similar square footage and overall quality.
A colonial might get compared to a split-level or a ranch in the same area, with adjustments made for the differences.
Don’t panic if the comps in your appraisal report aren’t the same style home as yours. That’s normal and expected.

How many comparable sales does an appraiser need?

An appraiser needs at least three recent, comparable sales to support a value, not just one data point.

One unusually low recent sale in your neighborhood doesn’t automatically drag your value down.
One unusually high sale doesn’t automatically boost it either.
With three or more sales in the mix, the appraiser balances and adjusts across the group to land on a supportable number.

How far back do appraisers look for sales data?

Appraisers typically stick to sales from the last six months, and the newer the sale, the more weight it carries.

In a market where values are moving fast, a sale from three months ago is far more useful than one from five months ago.
This is exactly why timing and market speed matter so much in a rising or falling market. If home values in Montgomery County jump 10-15% in a matter of months, older comps struggle to keep up, and appraisers know it.

Where do appraisers search for comps?

The search radius depends heavily on how big and how dense your community is.

In larger neighborhoods with a thousand homes or more, appraisers often find everything they need without leaving the community.
In smaller or more rural areas, appraisers typically search by radius, sometimes a mile or two out from the subject property.
Staying within the same city and county matters. A home in Rockville and a home in Bethesda might technically fall within a certain mileage radius of each other, but that doesn’t mean an appraiser is going to treat them as comparable.

Do home improvements actually move the number?

Yes, improvements matter, but don’t expect a dollar-for-dollar return on what you spent.

Sellers should always hand the appraiser a written list of improvements at the time of the appraisal appointment.
That list should include the date of each improvement, what was done, and what it cost.
Appraisers genuinely appreciate this kind of documentation. It gives them something concrete to point to when justifying an adjustment, instead of guessing.

Does a bigger lot mean a bigger appraisal?

Lot size matters, but usability and quality of the lot matter more than raw acreage.

A quarter-acre, level lot with a walkout basement on a quiet cul-de-sac backing to trees can appraise higher than a half-acre lot on a busy street that slopes away from the house.
Appraisers are ultimately weighing demand and usability, not just the number on the plat.

One more thing I tell every seller: your agent should physically show up and meet the appraiser on appraisal day. Think of it like an attorney walking into court on your behalf. A good agent brings a packet that makes the case for the sale price, including the signed contract, copies of any competing offers that show real demand, floor plans, lot plats, HOA information, and the strongest supporting comparable sales available. That packet can be the difference between an appraisal that supports your deal and one that doesn’t.

If you want to go deeper on the underwriting side of this, Fannie Mae publishes its full appraisal standards in the Selling Guide atsinglefamily.fanniemae.com, and theAppraisal Instituteis a solid resource if you want to understand appraiser standards and credentials in more detail.

Whether you’re getting ready to buy or list, understanding this process ahead of time keeps you from getting blindsided. If you’re buying, check out myguide to buying a homefor the full picture. If you’re selling, myguide to selling a homewalks through exactly how I position a listing to hold up under appraisal scrutiny.

Frequently Asked Questions

Can a low appraisal kill my deal even if the buyer and seller already agreed on price?

Yes. If the home is being financed, the lender will only lend against the appraised value, not the contract price. A low appraisal forces a renegotiation, a buyer bringing extra cash to closing, or the deal falling apart.

Can I choose my own appraiser to get a better number?

No. Appraisers are assigned through an appraisal management company in a rotation system, with no direct connection between the lender and the appraiser. This keeps the process independent from every party in the deal.

What can I do as a seller to help support my sale price?

Provide an itemized list of home improvements with dates and costs, make sure your agent meets the appraiser in person, and have a packet ready with your contract, any competing offers, floor plans, and strong comparable sales.

How far back do appraisers look at comparable sales?

Typically no more than about six months, though in a fast-moving market, more recent sales carry significantly more weight than older ones.

Does a bigger lot always mean a higher appraisal?

Not necessarily. A smaller, level, usable lot in a desirable location can appraise higher than a larger lot with poor usability, like one on a busy street or a steep slope.

Every deal is different, and appraisal issues can get complicated fast. If you’re buying or selling in Montgomery County and want a realtor who shows up on appraisal day and fights for your number,contact meor read more aboutwhy I do things differently.

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