I’ve done my fair share of fix and flips, rennovations and BRRRRs….so when I got a question about how done the rennovation has to be before the appraiser is called in, I thought it deserved a post! My client reached out to ask about their own situation :
“I want to refinance my house, but I’m in the middle of a few projects — some walls are open and there’s wiring exposed. How finished does everything need to be for the appraisal?”
If you’ve ever renovated a home in phases, you know this limbo well. The house is improving… but it’s not exactly photo-ready. The good news? Your home doesn’t need to be perfect to refinance — but there are some non-negotiables.
Let’s break down what actually matters for an appraisal during a refinance.
The Big Picture: What an Appraiser Is Looking For
When you refinance, the appraiser’s role is to confirm the home is:
- Safe
- Habitable
- Comparable to other homes used to determine value
They are not judging your design choices or whether your trim is installed. But they are required to flag health and safety concerns — and unfinished projects can absolutely trigger those.
A good rule of thumb:
Your home doesn’t need to be pretty, but it does need to be safe, enclosed, and functional.
What Typically Must Be Finished Before an Appraisal
These items almost always need to be completed for a refinance to move forward smoothly:
🚨 Safety & Habitability Items
- No exposed electrical wiring
- No exposed plumbing
- Walls and ceilings enclosed
- Drywall installed (paint can wait)
- Floors installed
- Large areas with only subfloor can be an issue
- A working heat source
- Functional kitchen and bathrooms
- Sink, toilet, and shower/tub installed
- No active hazards
- Open holes, unsecured stairs, trip hazards, etc.
If an appraiser sees exposed wiring, plumbing or open walls, they will almost always mark the appraisal as “subject to completion of repairs.” That can pause your refinance until everything is fixed — and usually requires a paid re-inspection. Remember, this appraisal is an out of pocket expense, so make sure you have your project buttoned up!
What Can Usually Be Left Unfinished
With rates dropping, you may want to move quickly, but yikes, your project isn’t finished! Here’s the reassuring part. These items are typically not deal breakers:
- Unpainted walls
- Missing trim or baseboards
- Cosmetic upgrades in progress
- Outdated finishes
- Landscaping not completed
- Projects that are clearly aesthetic (not safety-related)
In short: cosmetic work is flexible. Safety work is not.
Loan Type Matters (A Lot)
How strict the appraisal is depends heavily on the loan:
- Conventional loans
The most flexible. Still must be safe and livable, but more forgiving overall. - FHA or VA loans
Much stricter. Any exposed systems or safety concerns will almost certainly need to be fixed. - Cash-out refinances
Often receive extra scrutiny since you’re pulling equity out.
If you’re refinancing with FHA or VA financing, assume the home needs to be fully enclosed and hazard-free before the appraiser steps inside.
What Happens If the Appraiser Flags an Issue?
If unfinished work is noted, the lender may require:
- Repairs to be completed before the refinance can close
- A re-inspection to confirm the work is done
That means more time, more stress, and more cost — which is why it’s usually smarter to handle safety-related items before scheduling the appraisal.
A Smart Strategy If You’re Mid-Project
If you’re renovating and thinking about refinancing:
- Finish safety-related items first (electrical, plumbing, drywall)
- Don’t worry about paint, trim, or final touches
- Talk to your lender before ordering the appraisal
- When in doubt, assume exposed systems will be flagged
A little planning upfront can save weeks of delays.
The Bottom Line
You don’t need a magazine-ready home to refinance — but you do need one that’s safe, enclosed, and functional.
If you’re unsure whether your current projects could cause issues, it’s worth getting clarity before the appraisal is ordered. I’m always happy to:
- Review photos and flag potential red issues
- Help create a “must-finish vs. can-wait” punch list
- Talk through timing so your refinance stays on track
Because refinances should feel like a win — not another construction headache. Curious about your own home? Reach out to me and I can help walk you through your own situation, pull comps for your Fraser, Tabernash, Winter Park, Arvada, Lakewood, Wheat Ridge or Golden home!