The Appraisal: What the Bank is Looking for in NH

You’ve found the home, the inspection went well, and now you’re waiting on the appraiser. For a bank to lend you money, they need to know the property serves as sufficient collateral. In New Hampshire, appraisers look at more than just the "sticker price."

Safety, Soundness, and Security

Banks follow strict guidelines (especially for FHA, VA, or USDA loans). The appraiser will check:

• Heating: Every "habitable" room must have a permanent heat source. In NH, a space heater or a wood stove as the only heat source often won't fly with a bank.

• Water Quality: For homes with private wells, banks often require a water test. If there's bacteria or high lead levels, the bank will require a filtration system before they close.

• Peeling Paint: For homes built before 1978, peeling paint is a major "red flag" due to lead paint concerns.

The "Comp" Game in a Rural State

In a city like Manchester, finding three similar homes that sold nearby is easy. In rural towns like Deerfield or Epsom, it’s harder. Appraisers may have to travel 10 miles or more to find a "comparable" sale. They adjust the value based on:

• Acreage: Is the land "usable" (open field) or "excess" (sloped ledge and swamp)?

• Outbuildings: NH buyers love their barns and detached garages, but banks often give them less "value" than you might expect compared to the cost of building them.

The Road Maintenance Agreement

This is a big one in NH! If the home is on a private road, many banks will not lend unless there is a formal, recorded agreement among all neighbors detailing how the road is plowed and maintained. Without this, your appraisal—and your loan—could stall out.