Whether buying, selling, refinancing, or building a home, the appraisal process plays a crucial role in determining a property’s value. A home appraisal can influence how much a lender is willing to finance, how a sale price is negotiated, and even how much equity you have in your home.

For homeowners working with BGA Design & Build in San Antonio, understanding appraisals is especially important—because design and construction decisions can have a direct impact on a property’s appraised value. This guide breaks down everything you need to know about how appraisals work, what factors appraisers consider, and how to prepare your home or new build for the best possible valuation.

A home appraisal is an unbiased professional assessment of a property’s market value. Appraisals are typically conducted by licensed or certified appraisers who are trained to evaluate a home’s features, condition, and comparable sales in the area.

Lenders require appraisals to ensure the property’s value matches the loan amount. For example, if you’re buying a home, the bank wants to make sure the property is worth what you’re paying. If the appraisal comes in lower than the purchase price, it can affect financing and negotiations.

Appraisals also matter for homeowners building or renovating. When working with BGA Design & Build, understanding how design choices—such as layout, materials, and upgrades—affect appraised value can help you make smart investments that enhance both livability and resale potential.

Appraisals are required or recommended in several key situations:

Buying a home: Lenders require an appraisal before finalizing a mortgage to confirm the property’s value supports the loan.

Refinancing a mortgage: The lender uses an appraisal to determine your current home value, which affects how much you can borrow or what interest rate you qualify for.

Selling a home: Sellers sometimes get pre-listing appraisals to price their homes competitively.

Building or renovating: Appraisals are often needed before construction financing is approved and again after the project is complete to confirm the new market value.

For homeowners working with BGA Design & Build, understanding how your project will be appraised can help you anticipate your property’s future worth and align your budget with long-term goals.

The appraisal process usually begins once a lender or client orders the evaluation. Here’s what typically happens:

1. Scheduling the inspection: The appraiser sets up a time to visit the property. For new builds, they may review blueprints, specifications, and plans before the home is completed.
   
   
2. Property inspection: During the visit, the appraiser examines the home’s interior and exterior condition, layout, materials, and quality of workmanship. They note upgrades, renovations, and any issues that could impact value.
   
   
3. Comparable market analysis: The appraiser researches recent sales of similar homes (often called “comps”) in the same area, adjusting for differences such as square footage, age, condition, and lot size.
   
   
4. Final report: The appraiser compiles their findings in a detailed report that includes photos, maps, comparable sales data, and a final estimated value. This report is sent to the lender or client for review.

Appraisers use both objective data and professional judgment to determine value. While every home is unique, several core factors carry significant weight in an appraisal:

The neighborhood, proximity to amenities, school districts, and overall desirability of the area play major roles. Even within the same city, two homes of similar size can vary greatly in value based on their exact location.

Square footage is a major factor, but layout matters too. Open floor plans, efficient use of space, and flexible living areas can add value.

Well-maintained homes receive higher appraisals. Deferred maintenance—like old roofing, peeling paint, or outdated systems—can negatively affect value.

For custom homes built by BGA Design & Build, the appraiser will evaluate craftsmanship, materials, and finishes. Premium features like hardwood floors, energy-efficient windows, or high-end appliances can significantly boost the appraisal.

Renovations that add functionality or appeal—such as modern kitchens, luxury bathrooms, or outdoor living spaces—can increase appraised value.

Appraisers rely on recent sales of similar homes within a defined radius. The more competitive the local market, the more heavily these comparisons weigh in.

New construction appraisals differ slightly from those for existing homes. In a new build, the appraiser evaluates the property based on the “as-completed” value—what the home will be worth once construction is finished.

The appraiser will review your building plans, specifications, lot details, and cost breakdowns. They’ll also analyze recent sales of similar new homes in the same area.

For BGA Design & Build clients, this stage is especially important. The firm’s design-build process provides detailed plans and material lists, helping the appraiser clearly understand the quality and value of the project. Once construction is complete, a final appraisal confirms the home’s actual market value, which is crucial for permanent financing.

While the appraiser’s job is objective, homeowners can take several steps to present their property in the best possible light:

• Tidy and declutter: A clean, well-organized home feels well cared for, which can influence the appraiser’s perception of condition.
• Highlight upgrades: Provide a list of recent improvements, including remodels, new appliances, or structural upgrades.
• Show exterior appeal: Landscaping, fresh paint, and maintained exteriors add to curb appeal and can subtly boost value.
• Provide documentation: If your home was built or remodeled by BGA Design & Build, include floor plans, material specifications, and warranties to help the appraiser understand the home’s quality.
• Be present but unobtrusive: Be available to answer questions, but allow the appraiser space to work.

Sometimes an appraisal doesn’t meet expectations. This can happen in fluctuating markets or when recent comparable sales don’t fully reflect your home’s unique features.

If your appraisal comes in lower than expected, you have options:

• Request a review: Provide additional comps or documentation showing upgrades or features that may have been overlooked.
• Renegotiate: In a sale, the buyer and seller may renegotiate the price or terms to keep the deal on track.
• Wait for better market conditions: If possible, waiting a few months can sometimes improve value as new comps enter the market.

For homeowners building with BGA Design & Build, this is rarely a concern. The firm’s commitment to quality craftsmanship and thoughtful design ensures lasting value that stands up well during appraisal and beyond.

Not all upgrades are created equal. When designing or remodeling your home, it’s important to understand which improvements deliver the most value. Appraisers and buyers alike tend to reward features that enhance comfort, functionality, and energy efficiency.

Examples of high-value design choices include:

• Updated kitchens and bathrooms with timeless finishes
• Energy-efficient systems such as HVAC, windows, and insulation
• Smart home technology and sustainable materials
• Outdoor living spaces and landscaped yards
• Quality flooring, cabinetry, and lighting fixtures

BGA Design & Build helps homeowners make these decisions strategically. Their team designs with both lifestyle and long-term value in mind—ensuring every choice contributes to beauty, comfort, and financial return.

Understanding appraisals is just one part of making smart decisions as a homeowner. Whether you’re building from the ground up, remodeling, or adding on to your property, working with a trusted partner like BGA Design & Build ensures your investment is protected and your vision realized.

With years of experience in custom home design and construction across San Antonio and the Hill Country, BGA’s integrated approach simplifies every step—from planning to execution. The result is a home that not only looks exceptional but also holds lasting value when it’s time for appraisal.

Let BGA Design & Build help you create a home that’s as valuable as it is extraordinary.