An appraisal is an opinion of the market value of your home, or what someone would pay for your home today as compared to other homes in your market area. Let’s say you bought your home for $150,000 and you’ve added $75,000 in updates, a new kitchen, and a large barn. That doesn’t mean that your house is now worth $225,000. It is worth whatever can be proven by other, recent, similar sales in your area. An over-improvement is any situation where a home has more features than other similar homes or is in excess over what is typical. If the top-selling houses in your area have sold for $150,000, then your appraisal will most likely come in around $150,000, even though you’ve added $75,000 worth of improvements. If homes can be found, that sold in the last 12 months and somewhat close-in location, and have sold for $300,000 with an updated kitchen and a large barn, then your appraisal could come in around $300,000. Appraised values are not insurance values. A home is insured for how much it would cost to replace that home and all of its features. An appraisal value is typically what would someone pay for this house, as compared to others that are similar, if it was being sold today.