What happens when the appraised value doesn’t match your contract price? Or why does your tax bill show one number while your lender’s appraisal shows another? If you’re buying or selling in the Des Moines area, these questions can feel stressful. You want clear answers so you can move forward with confidence.
In this guide, you’ll learn how mortgage appraisals work in Iowa, how they differ from Polk County assessments for property taxes, what affects value in the Des Moines market, typical timelines, and practical steps to prepare and respond. Let’s dive in.
Mortgage appraisals, explained
A mortgage appraisal is a professional opinion of a home’s market value used by a lender to help approve your loan. It protects both you and the lender by confirming the property is worth the amount you’re borrowing.
Who orders and why
- Your lender orders the appraisal, often through an appraisal management company to keep the process independent.
- Buyers and sellers do not pick the appraiser for lender appraisals.
- The goal is to verify market value so the home can serve as suitable collateral for the loan.
Appraiser qualifications
- In Iowa, appraisers must be licensed or certified and follow national standards known as USPAP, along with lender guidelines for the loan type.
- Credential levels include Trainee, Licensed Residential, Certified Residential, and Certified General. The lender assigns an appraiser with the right scope for the property.
Types of residential appraisals
- Full appraisal with interior and exterior inspection. This is the most common for purchase loans.
- Desktop or exterior-only in limited cases when the lender permits. These may be used in streamlined refinances or special products.
- Automated Valuation Models are computer estimates. They are not usually a substitute for a full appraisal on a purchase.
Methods appraisers use
- Sales Comparison Approach. Compares your home to recent, similar local sales and adjusts for differences. This is the primary method for most single-family homes.
- Cost Approach. Estimates land value plus replacement cost, minus depreciation. Often used for new builds or unique homes.
- Income Approach. Used when a property is income producing or has rental potential.
What affects value in Polk County
Appraisers analyze local market data, your property’s features, and any conditions that impact marketability.
- Location and neighborhood boundaries in the Des Moines metro. Comps should come from truly similar areas.
- Recent comparable sales. The best comps are nearby, recent, and similar in size, age, condition, and lot type.
- Home features and condition. Square footage, bedroom and bath count, layout, updates, foundation type, garages, porches, and finished basement space all matter.
- Market conditions. Current supply and demand, price trends, and seasonal patterns can influence value.
- Legal and physical issues. Floodplain designations, code violations, easements, or unique site limits can affect marketability.
- Historic districts and local zoning. Rules that limit alterations can change buyer demand and value adjustments.
Timeline and typical costs
- From order to inspection is often 1 to 7 business days. Then the report typically takes another 1 to 7 business days.
- Overall, many appraisals in normal conditions land in the 3 to 14 day range, but busy periods can stretch timelines.
- The buyer usually pays the appraisal fee as part of loan costs. The fee varies by property type and complexity.
What to expect on appraisal day
A full appraisal includes photos and measurements and usually takes 30 to 90 minutes on site. Appraisers cannot be coached on value, but you can share factual information.
Use this quick prep list:
- Make access easy. Confirm the appointment and ensure all rooms, mechanicals, and the garage are accessible.
- Gather documentation. Provide invoices and permits for meaningful upgrades, roof and HVAC replacement dates, and any foundation or water mitigation work.
- Share relevant comps. Offer a sheet of recent closed sales that are truly comparable in your immediate area.
- Note special features. Finished basement, energy upgrades, extra garage stalls, or a larger lot can matter. Provide details and receipts when possible.
Result scenarios and what they mean
- Value at or above contract price. Your lender can usually proceed with underwriting.
- Value below contract price. This creates an appraisal gap. You, the seller, and the lender must agree on a solution.
- Repair items on FHA or VA loans. If health, safety, or minimum property requirements are flagged, those repairs must be completed or funds held in escrow before closing.
Common solutions for a low appraisal
When the value comes in below the purchase price, you have options:
- Increase your down payment to cover the gap.
- Renegotiate with the seller on price or split the difference.
- Use your appraisal contingency to cancel if your contract allows.
- Request a Reconsideration of Value through your lender if there are better comps or factual errors.
- Ask your lender about a second appraisal. This can add cost and time and requires lender approval.
Polk County assessments vs mortgage appraisals
A property tax assessment is different from a mortgage appraisal.
- The Polk County Assessor assigns assessed value for tax purposes using mass appraisal methods and scheduled revaluations.
- A county assessment does not change because of a lender’s appraisal and a lender’s appraisal does not change your assessed value.
- If you disagree with an assessed value, you follow the county appeal process and deadlines, which are separate from any mortgage or sale.
Local factors that surprise people
In the Des Moines area, small details can have a big impact on how comps are selected and adjusted.
- Neighborhood segmentation. Urban core, older single-family areas, and newer suburbs can sell differently. Pulling comps from dissimilar areas weakens support.
- New construction and infill. The supply of new homes in nearby suburbs and infill projects in Des Moines can change what buyers will pay for certain features.
- Floodplain considerations. Some corridors sit within mapped flood zones. Designation, mitigation, and recent events can influence value and lending.
- Historic and zoning overlays. Restrictions on exterior changes can affect demand differently by buyer.
Smart steps for buyers
Set yourself up for a smooth appraisal and quick response if value comes in low.
- Get your loan and appraisal ordered early. Ask your lender about timing so you can plan inspections and repairs.
- Know your contingency timelines. Understand what happens if the value is short of the price.
- Prep evidence in advance. If you or your agent find better comps or recent price changes, have them ready in case a reconsideration is needed.
- Budget for options. Decide ahead of time how you might handle a gap, from extra cash to renegotiation.
Smart steps for sellers
A little preparation can strengthen the appraiser’s view of condition and marketability.
- Share a comp packet of recent closed sales that are truly similar and local.
- Provide upgrade documentation. Invoices, permits, and warranties help validate significant improvements.
- Confirm accurate details. Square footage, bedroom and bath count, finished basement area, and lot size should match records.
- Make access seamless and present the home well. A clean, organized space helps appraisers see features clearly.
How reconsideration of value works
If you believe the appraisal missed key data, your lender manages the reconsideration process.
- You or your agent provide additional closed comps, corrections to facts, or omitted features to the lender.
- The lender decides whether to ask the appraiser to review, perform a desk review, or order a new appraisal.
- There is no guaranteed outcome. If the original report is reasonably supported, the value may not change.
FHA and VA specifics to note
FHA and VA appraisals include checks for minimum property standards.
- Health, safety, and livability items must meet program requirements. Repairs are often required before closing or handled with an escrow holdback if allowed.
- Condition concerns may be treated more conservatively than on some conventional loans.
Ethics, independence, and fairness
Appraisers must remain independent and follow strict ethics and confidentiality rules. Any attempt to pressure an appraiser is a violation. If you suspect bias or a fair housing concern, you can report it to state or federal authorities.
When to call a local expert
If you’re planning to buy or sell in Polk County, early guidance helps you avoid surprises. A local team can help you prepare a comp packet, coordinate access, explain timelines, and plan next steps if the value is short.
If you want a clear plan for your appraisal, reach out to Stephanie Dart for local, hands-on support.
FAQs
Who pays the appraisal fee in Iowa?
- The buyer typically pays the appraisal fee as part of loan closing costs, though this can vary by contract.
Can I choose the appraiser for my loan?
- No. The lender selects and hires the appraiser, often through a management company, to keep the process independent.
How long does an appraisal take in Des Moines?
- The on-site visit usually takes 30 to 90 minutes, and the full report commonly arrives within 3 to 14 days from order depending on market conditions.
Will paint or staging raise my appraised value?
- Cosmetic updates can help overall condition, but value depends most on comparable sales and meaningful features or improvements documented with receipts.
How is a Polk County assessment different from a lender appraisal?
- The county’s assessed value is for property taxes using mass appraisal on a set schedule, while a lender appraisal is a property-specific market valuation for a loan.
What if an FHA or VA appraisal requires repairs?
- Required health, safety, or livability repairs must be completed before closing or handled through an approved escrow holdback when allowed by the program.
Do flood zones affect appraisals in the Des Moines area?
- Floodplain designations, past events, and mitigation steps can influence both lending and appraised value, so documentation and insurance details matter.
