Appraisal issues can be common hangups in a real estate transaction. In June, appraisal issues were blamed for causing delays in 18% of transactions (the second highest reason behind issues related to obtaining financing) and for terminating 9% of contracts, according to the REALTORS® Confidence Index.

While appraisal issues may be unavoidable if home prices are escalating too quickly and not matching offers, homeowners can still prepare for an appraisal to help ensure their home is presented in its best possible light.

Forbes.com emphasizes three main areas of a home in preparing for an appraisal: the kitchen, bathroom, and curb appeal.

Indeed, curb appeal counts. In a new study in the Journal of Real Estate Finance and Economics, researchers found that properties with top-notch curb appeal tended to sell for 7% more than similar properties in the same area that had poor curb appeal.

“Expand your hardscape,” Mike Fitzpatrick, vice president of U.S. Lawns, told Forbes.com. “If it’s within your budget, create an additional living space outside by expanding your stone or brick patio. However, be sure to consider if the higher valuation will exceed the added investment.”

Lower-cost ways to boost curb appeal: Mulch around trees, shrubs, and plants and add pops of color, such as flower pots at the door. The key is to set the right first impression that the house is well cared for, from the outside in.

Inside, mid-range to upscale bathroom remodels tend to recoup around 60% return on investment, according to Leah Tuttleman, interior designer for Re-Bath. A bathroom redo may not be in the budget, but even simple projects can make a difference to the appearance. First off, address any caulking or other glaring problems before cosmetic issues. While appraisers won’t be judging your decor, you can show that the house is well-cared for and up-to-date. For example, update vanity lights and faucets so that they match; matte black and brass are trending. Also, Tuttleman told Forbes.com that light, neutral-colored bathrooms can help make spaces feel larger and calming. Also, a simple fix: Replace low-wattage bulbs with a higher watt LED bulb and use dimmers if possible, she suggests.

Kitchen remodels can be costly, but they can get you around 77.6% return on investment, says Lisa Seeger, design trend expert at N-Hance Wood Finishing. “Sometimes all it takes to revamp the entire kitchen is a simple cabinet color change,” Seeger told Forbes.com. “Some trending looks include all-white cabinets, black cabinetry, jewel-toned, two-toned cabinets, and gray.” Updated hardware on the cabinets and lighting can go a long way in upgrading a space too. Read more: The Jewelry in Your Kitchen Design and Decor Details: Choosing the Right Cabinet Hardware

Many Americans turned their attention to their homes during the pandemic. Home improvement big-box retailers reported a swarm of traffic as homeowners looked to spruce up their nests while sheltering in.

What were homeowners working on?

Outdoor spaces were fueling much of the demand, according to Houzz, an online home remodeling platform. For example, new decks or patios, pools, and fences have gotten a lot of attention.

Homeowner Justin Sullivan shared with CNBC his feelings about his pool, home gym, and sauna projects. “When you’re not able to go out, your house is an enjoyable space where you can live bunker-style and still be active, still feel comfortable, and still enjoy,” Sullivan says. “The kids will have spaces to make sure they can work from home, and when it gets really hot in the summertime, they’ll have a place where they can cool off.”

Houzz reports a 58% annual increase in project leads for home professionals in June as homeowners looked to update their spaces. Searches for pool and spa professionals tripled this summer compared to a year ago, Houzz reports. Deck and patio professionals saw more than double the demand.

Also, demand for interest in fence installation and repairs jumped 166%, Houzz notes.

The desire for more space has been common for homeowners during the pandemic. That may explain why Houzz has seen a 52% increase in professionals being called in for home extensions and additions.

Kitchen and bath remodels also have been popular, seeing a 40% jump in demand in June compared to a year ago, Houzz reports.

Homeowners have seen record high amounts of home equity during the pandemic, which may be one motivating factor to tackle more house projects. More than 15 million residential properties—or 27.5% of all mortgaged homes–were considered equity-rich in the second quarter, according to ATTOM Data Solutions. (That means the mortgages on those properties is 50% or less than the value of the home.)

Homeowners don’t appear to be done sprucing up their nests. More than three-quarters of homeowners recently surveyed say they plan to tackle a new house project over the next 12 months, according to Porch.com, a home remodeling website. Their top motivators were “finally having time,” “adding value to the home,” and a desire to make their home “feel more cozy.”

Despite the pandemic, home values continued to climb in the second quarter, with 15.2 million residential properties in the U.S. considered “equity rich,” according to a new report from ATTOM Data Solutions, a real estate data firm. That means the combined estimated amount of loans secured by those properties was 50% or less of their estimated market value. About 28% of properties in the second quarter were equity rich, up from 26.5% in the first quarter, according to the report.

“Homeowners saw their equity rise far and wide throughout the United States during the second quarter of this year in yet another sign of the housing market punching back against the coronavirus pandemic,” says Todd Teta, chief product officer with ATTOM Data Solutions. “More property owners rose into equity-rich territory and escaped the seriously underwater lane, putting more money into the average household.”

The housing market still faces “enormous challenges,” given historically high unemployment, the recession, and the pandemic, Teta adds. “If that continues, owner equity will be seriously threatened,” he cautions. “But for now, homeowners are enjoying the gains when it comes to what, for most, is their most significant asset.”

The Midwest and South saw the largest improvements in the share of equity-rich homes during the second quarter, according to the report. In Georgia, the share of equity-rich homes jumped from 17.5% in the first quarter to 20% in the second quarter. Other states that saw some of the largest improvements during the second quarter:

• Idaho (up from 33.6% to 35.4%)
• Mississippi (up from 19.3% to 21%)
• Indiana (up from 23.5% to 25.2%)
• Nebraska (up from 18.2% to 19.9%).

Overall, the Northeast and West continue to have the largest shares of equity-rich homes in the country, the ATTOM Data Solutions report shows. The states with the largest shares are:

• California (43%)
• Vermont (39.1%)
• Hawaii (38.6%)
• Washington (38.1%)

By metro level, the cities with the highest share of equity-rich properties in the second quarter were all in the West:

• San Jose, Calif. (64%)
• San Francisco (56.5%)
• Los Angeles (47.9%)
• Santa Rosa, Calif. (45.3%)
• Seattle (40.9%)

In the Northeast, Boston was the leader, with 35.9% of its properties considered equity rich. In the South, Dallas led with 38.3%, and in the Midwest, Grand Rapids, Mich., had the highest share at 28.8%.

Meanwhile, as home prices rise, fewer homes are falling underwater. The ATTOM Data Solutions report showed that just 3.4 million homes with a mortgage nationwide—or 6.2%—were considered seriously underwater in the second quarter. That means the combined estimated balance of the loans on the properties is at least 25% or more than the estimated value.

For the eighth time this year, the 30-year mortgage rate hit an historic low. Home buyers and refinancing homeowners could now potentially lock in the lowest rates Freddie Mac has recorded since it began tracking such data in 1971.

“The resilience of the housing market continues as mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand,” says Sam Khater, Freddie Mac’s chief economist. “We expect rates to stay low and continue to propel the purchase market forward. However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes.”

The National Association of REALTORS® predicts that rates could fall further over the next few weeks, since 10-year Treasury yields, which mortgage rates tend to follow, also have retreated slightly.

Jumbo mortgages, on the other hand, cannot be sold to Fannie Mae and Freddie Mac and do not carry a government guarantee. Therefore, they are more difficult to obtain, with lenders requiring higher down payments and stellar credit. “The housing market is hot because of the lower mortgage rates, but the luxury market may remain soft due to jumbo loan issues,” NAR economists say.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 6:

• 30-year fixed-rate mortgages: averaged 2.88%, with an average 0.8 point, falling from last week’s 2.99% average. The lowest average for the 30-year fixed-rate mortgage had previously been set in July at 2.98%. A year ago, 30-year rates averaged 3.60%.
• 15-year fixed-rate mortgages: averaged 2.44%, with an average 0.8 point, falling from last week’s 2.51% average. A year ago, 15-year rates averaged 3.05%.
• 5-year hybrid adjustable-rate mortgages: averaged 2.90%, with an average 0.4 point, falling from last week’s 2.94% average. A year ago, 5-year ARMs averaged 3.36%.

Freddie Mac reports average commitment rates, along with average fees and points, to reflect the total upfront cost of obtaining a mortgage.

Mortgage applications to purchase a home are 22% higher than a year ago, but last week applications did dip compared to the previous week. Purchase applications week to week were down 2% even as mortgage rates remain near record lows, the Mortgage Bankers Association reported Wednesday.

The lack of supply and rising home prices also may be pressing on home buyers. The weekly headlines of mortgage rates hitting new lows also may be causing some buyers to lose some of their urgency, particularly since rates are largely expected to stay low for the remainder of the year.

The average contract on a 30-year fixed-rate mortgage last week dropped to 3.14%, according to the MBA. Freddie Mac reported mortgage rate averages under 3% last week.

“The MBA’s forecast calls for rates to remain at these low levels, which will continue to spur strong refinance activity and offer homeowners relief in the form of lower monthly mortgage payments during these uncertain economic times,” says Joel Kan, the MBA’s forecaster.

Overall, mortgage application volume decreased 5.1% last week compared with the previous week, according to the MBA’s seasonally adjusted index. Refinance applications dropped 7% last week, but are still 84% higher annually.

At today’s low mortgage rates, nearly 18 million borrowers with good credit scores could benefit from refinancing and lower their monthly mortgage payments, according to Black Knight, a mortgage data and analytics firm.

Still, while mortgage rates remain low, the very best rates are mostly being reserved to top-tier borrowers with stellar credit. Lenders are reportedly being stricter with low down payment loans, such as FHA mortgages, which are usually popular among first-time buyers.

“Purchase loan balances continued to climb, which is perhaps a sign that the still weak job market and tighter credit for government loans are constraining some first-time homebuyers,” Kan says.

As record low mortgage rates prompt a wave in both home buying and refinancing, appraisers may be having a tough time keeping up: Lenders are reporting turnaround times for appraisals are increasing and, as a result, lengthening the underwriting process.

Lenders informally surveyed by HousingWire are reporting that they’re being quoted two to three weeks for an appraisal. One lender reported an appraisal that was to take 10 days came back nearly 27 days later. Some appraisers in hot markets like Colorado are saying they can’t make it out to a property in four weeks or more, HousingWire reports.

“What’s happening is because it’s difficult to become an appraiser,” Phil Treadwell, vice president of development and regional manager for Mason-McDuffie Mortgage, told HousingWire. “And because you have to go through third parties whenever you have a spike in production, those agencies and appraisers get backed up. There’s not a whole lot that can be done—at the end of the day we have a finite number of appraisers.”

Brian Covey, vice president of regional production for LoanDepot, also says the industry is seeing a limited number of underwriters to keep up with the demand. As lockdown restrictions eased in May, mortgage volume began to surge. Low mortgage rates are creating a need for more underwriters and appraisers, lenders say.

One silver lining: The industry says appraisal waivers are increasing in some markets. “Property inspection waivers through automated underwriting systems and consumer-friendly online document exchanges have helped to speed up the process and keep employees and families safe along the way,” HousingWire’s Alex Roha reports.

But companies that do not have technology to help speed up the process say transparency will be necessary.

“What I’ve been encouraging people to do is just be really honest with the customers,” Lori Noble, an appraiser, told HousingWire. “My clients who are honest like that are definitely being successful and it’s not causing any discomfort, just success. People in the industry forget we are selling a home—this is more than a bottom line and, if you are realistic, people will understand that.”