17 Common Appraiser Questions, Answered.

Last updated on April 4th, 2024 at 02:43 am

Do you have a home appraisal coming up and aren’t sure what to expect?

Not to worry! We’ll review some of the most commonly asked appraiser questions so you’ll know what to expect.

Disclaimer: Our articles are written by a Licensed or Certified Residential Appraiser. This information is meant for educational or informational purposes only, and does not support or indicate an opinion of value for your home or property, nor does it provide any type of value indication for a lender, attorney, realtor, or any other individual or entity.

A Real Estate Appraisal is an estimated evaluation of a property’s current market value. This valuation is conducted by a licensed professional who will look at various factors such as the condition, location, and size of the property. The appraiser will then use this information and conduct additional research to determine their opinion of a fair market value.

RELATED: WHAT’S IN AN APPRAISAL REPORT?

There are many reasons why you may need an appraisal for your home. The most common purpose is for mortgage lending as part of the home buying process when a home is being purchased or if a homeowner is refinancing.

Lenders typically require an appraisal to determine the market value of the home before approving a mortgage loan. This is to ensure that they are not lending more money than the actual worth of the property.

Other reasons for getting an appraisal might include divorce, settling estates, obtaining home equity loans, or for several other reasons that might just include a homeowner wondering what their home is worth.

The length of an appraisal inspection can vary depending on the size and complexity of the property. Generally, it can take anywhere from 30 minutes to an hour or two for the initial inspection.

For basic or smaller homes that feature no complex angles, floorplans, or extensive amenities, you can expect an inspection visit to take between 30-40 minutes.

Once the appraiser has been to the property and completed the site inspection, they will conduct additional research and prepare a detailed report to be sent to the lender or client.

The lender can usually then schedule the closing date and begin preparation for the final stages of the home buying process.

In most cases, the closing can be scheduled shortly after the appraisal is received by the client.

Completing the appraisal report can take a few days up to a week or two before the appraisal is completed and sent to the lender.

I know what you’re thinking… what takes so long to get the report written?

The truth is that many things can hold up the appraisal writing process. These can include delays in receiving relevant information from homeowners, lenders, associations, zoning offices, or realtors.

The current workload of the appraiser also has a significant impact on how long the report writing process takes. I’ve had weeks with 20+ appointments and little time left to write up reports.

It’s not uncommon during the busy spring market for appraisers to become overloaded and consistently burn the midnight oil in an attempt to get caught up!

Unforeseen circumstances like weather or traffic might also delay the initial inspection.

An appraiser looks at a variety of factors when determining the value of a property. These include the condition and age of the home, any recent renovations or upgrades, the size and layout of the property, recent neighborhood trends, comparable sales in the area, and a wide range of other factors.

An appraiser will also take into account any unique features or amenities that may impact the value of your property, such as your view (good or bad), external features like power line proximity or traffic patterns, recent neighborhood developments, changes in surrounding land uses, proximity to airports or shopping centers and employment facilities, and other factors impacting supply and demand within the market.

Yes, the appraiser will take photos of both the interior and exterior of your home. These photos are used for documentation purposes to support the appraiser’s opinion of value and to provide evidence to support any adjustments made during the valuation process.

Although your home doesn’t need to be spotless, It’s always advisable to present your property in its best condition during the appraisal inspection to ensure accurate representation in these photos.

RELATED: ARE APPRAISALS CONFIDENTIAL?

Which brings us to our next question…

While a clean and well-maintained home will make a better overall impression to the appraiser, it’s not likely to affect the appraisal value.

However, a dirty or cluttered house could potentially hide underlying issues that may impact the appraiser’s assessment of your property’s condition. Therefore, it’s wise to ensure your home is tidy and that all areas are accessible and can be observed by the appraiser.

Although the appraiser will observe kitchen components and finishes for quality, functionality, and condition, there is typically no need for us to look inside your cabinets.

Some homeowners like to show off quality upgrades like soft-close cabinets, so I do get a peek now and then, but please do not stress over what’s in your cabinets. (Unless it’s body parts.)

We have junk drawers at home, too.

The answer is, it depends. An appraiser will likely take photos of the attic and crawlspace if they are easily accessible. However, an inspection of these areas is only specifically required in certain situations, such as for FHA, VA, or USDA loans.

Some lenders may have more strict inspection requirements and may request these photos even for a conventional loan situation.

If there are signs of apparent damage or visible safety concerns, the appraiser may require access to these areas to view them more thoroughly.

It’s always a good idea to make sure they are accessible during the appraiser’s inspection.

While an appraisal can provide valuable information to the tax assessor if presented to them, it does not directly impact your property taxes. Property taxes are determined by the local government and are based on formulas developed by the assessor’s office.

A property’s final sale price, on the other hand, is a matter of public record and will likely be considered by the taxing authority.

An appraisal is most often intended for mortgage and lending purposes. Appraiser confidentiality guidelines ensure that the information obtained during an appraisal is not shared with any other parties other than the client who requested the appraisal.

If you believe your property has been over-assessed and your appraisal concludes a lower value, you may be able to use it as supporting evidence to appeal your property taxes.

RELATED: REAL ESTATE APPRAISAL MYTHS, DEBUNKED

Yes. Appraisers must be state-licensed or certified. The licensing or certification process includes extensive classroom training, a four-year degree or equivalent education, and a minimum 2 year training or apprentice period.

Appraisers must also pass a state exam and meet the requirements set forth by the Appraiser Qualifications Board. (AQB)

Appraisers must also follow the Uniform Standards of Professional Appraisal Practice (USPAP) guidelines when conducting appraisals.

These standards ensure that appraisers maintain ethical and professional conduct and remain independent and unbiased throughout the process.

The appraisal report is typically only given to the client who requested the appraisal. In most cases, this is the mortgage lender. The appraiser may be able to provide a copy of the report to other parties involved in the transaction, so long as they have permission from their client.

For private appraisals, the client would be whichever party requested and/or made payment for the appraisal.

Lenders are obligated to provide a copy of the appraisal report to the borrower upon request.

It is important to keep your appraisal report for future reference as it includes valuable information about your property’s components and condition.

If the appraisal is used for a loan or mortgage, it will be submitted to the lender. Typically the borrower will be given a copy of the appraisal.

If you are not satisfied with the outcome of the appraisal, you may appeal the decision by submitting a request for a “Reconsideration of Value.”

This request can be made to the lender (not the appraiser directly) and should include additional evidence and support such as recent home improvements, additional sales to consider, or mistakes noted within the appraisal report.

RELATED: APPRAISER TERMINOLOGY

We all have those little unfinished projects, but do they detract from your homes value?

The answer isn’t a straightforward yes or no. It depends on the nature of the projects. If you have significant renovations pending, such as a partially completed kitchen or a bathroom missing a tub, then yes, it can influence the final appraisal value of your home.

For smaller, cosmetic items such as painting or minor areas of trim that need completing, it’s unlikely an appraiser will have any data that supports an exact dollar amount to detract.

It’s important to remember that most potential buyers aren’t looking to take on extensive projects right after moving in. Your home becomes more appealing in a buyer’s eyes (and therefore, an appraiser’s) when projects are completed.

If you are having an appraisal completed for a mortgage transaction, then Yes, the appraiser is required to be provided with a copy of the accepted purchase offer for review. However, the opinion of value is based on several factors, none of which rely solely on the contract price.

An appraiser’s job includes analyzing all factors that may impact a home’s value or the purchase price offered.

The contract includes valuable information that may impact value, such as additional items (furniture, TVs) included in the price, monetary gifts to be included (common for transactions between relatives), discounts noted due to a defective component or needed repair, etc.

Without this information, the appraiser can’t fully understand the transaction and the underlying factors that impacted the offer price.

You don’t need to walk around with the appraiser during their inspection. Appraisers are well-versed in finding their way around a house. However, it can be beneficial if you have several upgrades or renovations to point out, as this information can help the appraiser accurately assess the value of your home.

This is generally considered a matter of preference amongst appraisers. Some prefer to walk through the house on their own to avoid any distractions but may approach you with questions afterward.

Others prefer to talk up a storm and question you about every minor detail of the home as they walk through.

Ask the appraiser if they’d prefer to walk through on their own or if they’d prefer you join them. Either way, assure them you’ll be available for questions if needed.

Final Thoughts

Now that we’ve covered a few of the most common questions appraisers get asked,  I hope you’ll take the time to review other related articles.

Many factors can influence the value of a home, and greater understanding can help you make well-informed decisions about your property. 

Do you have an appraisal question not covered here? Let me know in the comments!