Buying or selling in Paducah and wondering how the appraisal could impact your move? You are not alone. Whether you are financing a purchase or preparing to close a sale, the appraisal influences lending, negotiations, and timing. In this guide, you will learn how appraisals work in Kentucky, what appraisers look for in McCracken County, common timelines, and what to do if value comes in low. Let’s dive in.
What a home appraisal does
A home appraisal is a lender-ordered opinion of market value used for underwriting and risk assessment. It is not a home inspection. An inspector identifies defects, while an appraiser analyzes market data to estimate value.
In Kentucky, appraisers must be licensed or certified and follow the Uniform Standards of Professional Appraisal Practice. The borrower usually pays the appraisal fee, which is often charged at application or when the lender places the order.
Typical timeline in Paducah
Timelines can vary by season, property type, and appraiser availability, but here is what you can usually expect:
- Order to inspection scheduling: often 24 to 72 hours.
- Inspection to report draft: typically 3 to 7 business days after the walkthrough.
- Total order to lender receipt: commonly 5 to 10 business days. Complex or unique properties can take 10 to 21 days.
In Paducah and wider McCracken County, homes in flood-prone areas, historic districts, or on acreage may require more time because comparable sales are harder to find and additional research is needed.
What appraisers look for
Appraisers analyze recent, local sales and verify your property’s details during an on-site visit.
Valuation approaches
- Sales Comparison Approach: The primary method for single-family homes using similar recent closed sales.
- Cost Approach: Estimates replacement cost minus depreciation. More common for new construction or unique properties.
- Income Approach: Used when a property is income-producing, such as rentals.
On-site inspection checklist
During the walkthrough, the appraiser typically confirms:
- Size and layout: gross living area, bedroom and bathroom count, finished versus unfinished space, basement status, and garage or carport.
- Condition: visible roof issues, moisture intrusion, foundation cracks, or deferred maintenance.
- Systems and features: HVAC, water heater, roof age, energy-efficient upgrades.
- Quality and updates: kitchen and bath improvements, permitted additions, materials.
- Site and location: lot size, privacy, nearby traffic or noise, and general neighborhood setting.
- Legal or insurability items: unpermitted work, zoning concerns, easements, and flood zone status.
Appraisers use data from the local MLS, prior appraisals, tax and parcel records through the McCracken County Property Valuation Administrator, building permits, plat maps, and FEMA flood maps.
Local factors in McCracken County
- Flood risk: Paducah’s proximity to the rivers means flood zone status is noted, which can affect insurability, marketability, and sometimes value.
- Historic or unique homes: Special architectural details or historic context may reduce the pool of comparable sales.
- Rural or mixed-use parcels: Acreage, outbuildings, or mixed-use elements can complicate comparable selection and add time.
Appraised value vs contract price
Lenders base your loan amount on the lesser of the appraised value or the contract price. This single rule shapes many negotiations.
When value meets or exceeds price
If the appraised value is at or above the contract price, financing typically proceeds on schedule, subject to the rest of underwriting.
When the appraisal comes in low
If value is below the contract price, a gap forms between what you agreed to pay and what the lender will finance. Common paths include:
- Buyer adds cash to cover some or all of the shortfall.
- Seller reduces the price to match the appraised value.
- Buyer and seller split the difference.
- Seller offers concessions, such as closing cost credits, subject to lender limits.
- Buyer cancels under an appraisal or financing contingency if the contract allows.
Reconsideration of value basics
You may ask the lender to request a reconsideration of value. Effective requests point out factual errors and present stronger, more relevant comparable sales. The appraiser must support any change with credible market evidence and follow professional standards.
Contract remedies in Kentucky depend on the signed purchase agreement. Review contingency language and response timelines with your agent and lender.
Loan types and appraisal differences
Appraisal requirements vary by loan program. Your lender will outline the rules for your specific path.
Conventional loans
Conventional financing may allow desktop, hybrid, or even appraisal waivers in qualifying situations. Lenders often accept reconsiderations of value when backed by better comparables or clear factual corrections.
FHA loans
FHA appraisals review value and minimum property standards. If safety or livability issues arise, repairs may be required before closing or negotiated as credits, depending on lender guidance and program rules.
VA loans
VA appraisals address value and minimum property requirements. The VA process has specific safeguards for buyers and a structured path for addressing repairs or value concerns.
Seller checklist for appraisal day
Set your appraiser up for success with clear access and documentation. Small fixes and simple prep can make your home’s condition easier to evaluate.
- Gather documents: a list of upgrades with dates and receipts, permits for major work, HOA info, any available survey, utility history, prior appraisals or inspections, and your property tax assessment.
- Declutter and clean: highlight usable square footage and overall condition.
- Tackle quick repairs: leaky faucets, torn screens, loose handrails, burned-out bulbs, and visible gutter issues.
- Improve curb appeal: mow, trim, remove debris, and tidy entries.
- Ensure access: unlock gates and provide safe entry to attic, basement, HVAC, water heater, and electrical panels.
- Secure pets: plan for safe access throughout.
- Be ready to share: offer your upgrade list and any relevant permits or receipts. You may also share a short list of recent comparable sales your agent has tracked.
Buyer game plan for a low appraisal
If the appraisal is below contract price, move quickly and stay organized.
- Review the report: discuss the appraiser’s comparable sales, adjustments, and condition notes with your lender and agent.
- Check your contract: confirm appraisal or financing contingency timelines and remedies.
- Consider options: request a price reduction, ask for concessions, add cash to your down payment, or pursue a reconsideration of value.
- Second appraisal: permitted only in certain cases and subject to lender approval. The buyer usually pays.
- Know when to walk: cancel under the right contingency if it protects your earnest money and fits your goals.
Documents to share with the appraiser
Good information helps the appraiser verify facts and choose stronger comparables.
- Upgrade and repair log with dates and costs.
- Permits and contractor invoices for major work.
- Details on energy-efficient improvements or system replacements.
- Recent neighborhood sales your agent believes are most comparable.
- Unique features: outbuildings, shop space, permitted additions, or specialized materials.
- Flood or elevation info if available, especially near waterways.
Keep your closing on track
A clear understanding of the appraisal process helps you plan, negotiate, and protect your timeline. In Paducah and McCracken County, factors like flood status, rural acreage, or historic character can affect both timing and value. With the right preparation and a responsive team, you can navigate any surprises and keep your move on schedule.
If you are buying, selling, or exploring new construction or land in Western Kentucky, connect for tailored guidance on pricing, preparation, and appraisal strategy. Reach out to Gracie Youngblood to talk through your next step.
FAQs
Who pays for a home appraisal in Kentucky?
- The lender orders the appraisal and the borrower typically pays the fee, often at application or when the order is placed.
How long do appraisals take in Paducah?
- From order to lender receipt is commonly 5 to 10 business days, with 10 to 21 days for complex properties or peak seasons.
What do appraisers look at during the visit?
- They verify size, layout, condition, systems, upgrades, and site characteristics, and they note items like permits, flood zones, and obvious deferred maintenance.
Can I challenge a low appraisal value?
- Yes, you can ask your lender to request a reconsideration of value when you can show factual errors or provide better local comparable sales.
How does flood zone status affect value in McCracken County?
- Floodplain location can affect insurability, marketability, and sometimes value, so appraisers report the property’s flood zone status.
Are appraisal rules different for FHA, VA, and conventional loans?
- Yes, conventional loans may allow waivers in some cases, while FHA and VA usually require in-person appraisals and have minimum property standards.
What happens if the appraisal is below my contract price?
- You can negotiate price, add cash to cover the gap, split the difference, pursue concessions, seek a reconsideration of value, or cancel under a qualifying contingency.
