A home appraisal combines property information with relevant market evidence to develop a value opinion. The assignment determines the inspection and reporting scope.
Physical Condition and Features of the Home
General condition : The appraiser examines for any visible cracks, damages, leaks, water stains, or other signs of neglect that could affect habitability or value.Size and layout : This includes the square footage of the home, the number of bedrooms and bathrooms, and the overall floor plan.Foundation and roof: Visible condition, construction and reported repairs can be relevant. An appraisal is not a certification of structural soundness.Interior and exterior finishes : Materials and condition of walls, floors, windows, doors, siding, and roofing are noted. Upgrades like hardwood floors, granite countertops, and modern appliances can add value.Systems : The quality and state of plumbing, electrical, heating, and cooling systems are reviewed.Amenities : Features such as fireplaces, pools, landscaping, garages, decks, and patios are considered.Basement and attic : Whether these areas are finished or unfinished, and their condition, can impact value.Lot and Location
Lot size and topography : The size and usability of the lot, and any unique topographical features.Location: Access to amenities, nearby land uses and the setting help describe the property in relation to comparisons.View and access : Positive or negative views, vehicular access, and any potential hazards or zoning issues.Market Comparison and Analysis
Comparable sales: The appraiser researches relevant sales of similar properties and considers their differences and dates.Market trends : Local sales trends, price ranges, and real estate taxes compared to similar properties are also factored in.Special Considerations for Certain Loans
If a lender is involved, ask which property and reporting requirements apply to the actual loan.What Is Not Checked
Décor or cleanliness : Appraisers focus on fixed features and do not assess décor, cleanliness, or removable items.In-depth system inspection : Detailed assessments of mechanical systems and hidden defects are the domain of a home inspector, not an appraiser.The appraiser compiles the findings into the agreed report. Confirm who receives it and how questions should be raised.