A home appraisal is a professional evaluation conducted by a licensed appraiser to determine a property’s fair market value.
The Appraisal Process
The process follows these key steps:
Ordering: For a loan appraisal, confirm the lender’s ordering process. A private assignment should identify the client, intended use and effective date.Property visit: Under the agreed scope, the appraiser may measure, photograph and document the layout, condition and features of the home.Appraiser reviews comparable sales – The appraiser researches recently sold similar properties (“comps”) in the area and analyzes public records to compare values.Report: The appraiser explains the property information, market evidence and value conclusion. Confirm the report format and recipients in advance.What Appraisers Evaluate
Appraisers consider numerous factors when determining value:
Visible condition: Relevant observations about the exterior, interior and systems. An appraisal does not replace a home inspection or specialist testing.Size and layout – Square footage, number of bedrooms and bathrooms, lot sizeLocation – Neighborhood characteristics, school district, proximity to transportationAmenities – Features like fireplaces, pools, decks, or recent renovationsMarket data – Sales trends and price ranges for comparable homes nearbyCost and payment: Request a current quote and confirm payment terms. Rural or unusual properties may require additional research where close comparisons are limited.