Home Appraisal Guide for Elizabethtown, KY

A home appraisal is a critical step in nearly every real estate transaction. Whether you are buying, selling, or refinancing in Elizabethtown, the appraisal determines the property's market value and directly affects financing. Understanding how appraisals work — and what to do when one does not go as expected — gives you a significant advantage.

How the Appraisal Process Works

After a buyer goes under contract and their lender begins processing the loan, the lender orders an appraisal through an Appraisal Management Company (AMC). The key steps:

1. Assignment. A licensed appraiser is assigned to the property. Neither the buyer, seller, nor agents choose the appraiser — this independence is required by federal regulations.
2. Property visit. The appraiser visits the home, typically spending 30-60 minutes measuring, photographing, and noting the property's condition, features, and any issues. They examine both the interior and exterior.
3. Comparable sales analysis. The appraiser identifies 3-6 recent sales of similar properties in the area (comparables or "comps"). They adjust for differences in square footage, lot size, condition, location, and features to arrive at a market value.
4. Report delivery. The appraisal report is sent to the lender, typically within 7-14 business days of the property visit. In the Elizabethtown market, turnaround is generally on the faster end due to the availability of good comparable sales data.

The appraisal fee is paid by the buyer and typically costs $400-$600 for a standard single-family home in Hardin County. VA appraisals are slightly higher due to additional requirements.

VA Appraisal Specifics

If you are purchasing with a VA loan, the appraisal process has additional layers that both buyers and sellers should understand:

• VA-assigned appraiser. The VA appraisal is ordered through the VA's own portal, not the lender's typical AMC. VA appraisers are specifically trained and credentialed.
• Minimum Property Requirements (MPRs). Beyond establishing market value, the VA appraiser checks that the home meets the VA's habitability and safety standards. This includes functional heating, safe roofing, adequate water supply, proper electrical systems, and no significant health hazards (lead paint, exposed wiring, etc.).
• Repair requirements. If the VA appraiser identifies MPR deficiencies, they must be corrected before the loan can close. Common flagged items include peeling paint on pre-1978 homes, missing handrails, and non-functional appliances. These are typically inexpensive repairs.
• Tidewater process. If the VA appraiser believes the property may not support the contract price, they may invoke the "Tidewater" procedure, which gives the buyer's agent 48 hours to submit additional comparable sales data before the final value is set. This is a valuable safeguard.

In the Elizabethtown area, VA appraisals generally align well with market values because the area has ample recent sales data and a stable appreciation trend. Sellers accustomed to working with military buyers find the process straightforward.

What Affects Your Home's Appraised Value

Several factors influence how an appraiser values a home in the Elizabethtown market:

• Recent comparable sales. This is the most heavily weighted factor. What similar homes in your neighborhood have sold for in the past 3-6 months sets the baseline.
• Square footage and layout. Livable square footage is a primary driver. Basements, bonus rooms, and non-conforming spaces are valued differently than main-level living areas.
• Condition and updates. A renovated kitchen, new roof, or updated HVAC add value. Deferred maintenance subtracts it.
• Location. Proximity to good schools, low-crime areas, and desirable amenities positively influences value. Busy roads, commercial adjacency, or flood zone proximity can reduce it.
• Lot size and features. Larger lots, fenced yards, and outbuildings (garages, workshops) contribute to value, particularly in rural areas of Hardin County.
• Market conditions. Appraisers account for current supply and demand trends. In a rising market like E-town's, this generally supports higher valuations.

What to Do If the Appraisal Comes in Low

A low appraisal — where the appraised value is below the contract price — creates a gap that must be addressed. While this is uncommon in Elizabethtown due to consistent appreciation and good comparable data, it does happen. Here are your options:

• Renegotiate the price. The most common resolution. The seller reduces the price to the appraised value, or the parties meet somewhere in between. An experienced agent can navigate this negotiation effectively.
• Buyer covers the gap. If you have the cash and strongly want the home, you can pay the difference between the appraised value and the contract price out of pocket. This amount cannot be financed.
• Challenge the appraisal. Your agent or lender can submit a Reconsideration of Value (ROV) with additional comparable sales the appraiser may have missed. This is sometimes successful, particularly if strong recent sales support a higher value.
• Walk away. If the contract includes an appraisal contingency (standard in most E-town transactions), the buyer can terminate the contract and receive their earnest money back.

Tips for Sellers to Support the Appraisal

If you are selling, you can help ensure the appraisal supports your contract price:

• Provide your agent with a list of all improvements and upgrades, including dates and costs.
• Ensure the home is clean and accessible on appraisal day.
• Have your agent prepare a packet of comparable sales that support the contract price for the appraiser's reference.