A residential appraisal is an unbiased opinion of a property's market value prepared by a licensed or certified appraiser. While appraisals are commonly required for mortgage lending, they are also used for estate settlement, divorce, tax appeals, private sales, financial planning, and many other legal and personal situations involving real estate.
Appraisal fees vary depending on the property's location, size, complexity, intended use, and requested turnaround time. For mortgage financing, the appraisal is typically ordered through the lender, and the fee paid by the borrower may include charges from an appraisal management company or other third-party service providers. As a result, the amount paid by the homeowner is not necessarily the amount received by the appraiser.
Because every assignment is unique, we provide individualized quotes based on the specific property and appraisal needs.
The appraisal process generally consists of four steps: research, property observation, market analysis, and report preparation.
Before the appointment, the appraiser researches public records, zoning, prior sales, permits, and other property information to prepare for the assignment.
The extent of the property observation depends on the intended use of the appraisal. Some mortgage lenders may request a desktop appraisal, where the appraiser relies on public records and other available data without visiting the property. An exterior-only appraisal includes an observation of the property from the street while relying primarily on public records. An interior appraisal requires the appraiser to observe all living areas, outbuildings, and the exterior of the property. FHA and VA appraisals have additional requirements that may include operating certain systems and observing areas such as crawl spaces or attics when accessible.
After the property observation, the appraiser researches comparable sales, analyzes current market conditions, and develops a well-supported opinion of market value. This analysis is the most time-intensive part of the appraisal process and forms the foundation of the final value conclusion. The final step is preparing and delivering a written appraisal report that documents the research, analysis, and opinion of value.
The appraiser's goal is to gather as much relevant information about the property as the scope of the assignment allows. During a full interior appraisal, the appointment is often best described as a professional buyer walkthrough. The appraiser measures all buildings, documents the home's design, construction quality, condition, layout, updates, and other features that may influence its market value.
The appraiser is not evaluating housekeeping, decorating, or personal belongings. Instead, the focus is on the property's physical characteristics, overall maintenance, and the structural and functional components that affect marketability and value.
You do not need to deep clean your home before the appointment. The appraiser will photograph each room, the exterior, and any detached buildings as part of the report, but cleanliness and personal belongings do not affect the appraised value.
Please ensure the appraiser has safe access to all areas of the property, including garages, detached buildings, and any crawl space or attic access. For FHA and VA appraisals, accessible crawl spaces and attics may need to be observed. If these areas are blocked, a return visit may be required, which could result in additional fees.
Some repairs may be required for mortgage-related appraisals, particularly FHA and VA financing. Although lender requirements vary, conditions affecting the health or safety of the occupants commonly require correction. Examples include missing smoke or carbon monoxide detectors, missing handrails or guardrails where required, or an unsecured water heater. Keep in mind that an appraiser is not performing a home inspection or determining whether the property complies with current building codes.
While not required, it is helpful to provide a list of improvements completed within the past 15 years or since you purchased the property, along with the approximate dates of completion. This information helps the appraiser accurately understand your home's features and recent updates.
If your appraisal was completed for a mortgage loan and you have questions about the results, you may ask your lender about requesting clarification or a Reconsideration of Value (ROV). This process allows the appraiser to review any additional relevant information or comparable sales that may have been overlooked. While an ROV does not guarantee a change in the report or value conclusion, it provides an opportunity to ensure the appraisal is complete, accurate, and fully supported.
An appraisal is an independent opinion of market value developed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Because market conditions change, comparable sales differ, and professional judgment is involved, two qualified appraisers may reach different value conclusions.
Zillow and Redfin provide many useful real estate tools and property information however they are not a recommended source for determining a home's market value. Even Zillow notes that its Zestimate is only an estimate.
Automated valuation models (AVMs) rely on algorithms and publicly available data and cannot account for a property's condition, quality, recent updates, unique features, or other factors that influence value. A professional appraisal includes independent market analysis and expert judgment to develop a credible opinion of market value for the specific property.