What can cause a property appraisal to come in lower than expected?

A property appraisal coming in lower than expected can often be attributed to the condition and location of the property. Appraisers evaluate properties based on various factors, including physical condition, neighborhood characteristics, and proximity to amenities or undesirable features. For instance, a property in poor condition, such as one needing significant repairs or renovations, will likely receive a lower valuation. Additionally, if the property is located in a less desirable area—whether due to high crime rates, lack of schools or services, or other negative neighborhood aspects—this can significantly affect its market value.

The other factors mentioned, such as high demand in the housing market or comparative market analysis results, might typically support a higher valuation rather than contribute to a lower appraisal. While documentation errors can impact the transaction process, their relevance to the appraisal amount specifically is limited compared to the actual physical attributes and location of the property itself. Therefore, it's the condition and location that are crucial in determining the actual appraisal value.