What to Expect During an Appraisal Inspection | A Complete Walk-Through

Last updated on April 11th, 2024 at 03:16 am

If you’re gearing up for that all-important real estate appraisal inspection as part of your home-buying journey, but aren’t quite sure what to expect – don’t worry, you’re not alone! 

Whether you’re about to purchase your dream home, selling your property, or guiding clients through real estate transactions, the appraisal inspection is undoubtedly an important part of the process. 

Join me on this full walk through so you know what to expect during the appraisal inspection.

The appraiser’s role is to determine a fair market value – a key factor for the lender to determine the potential loan amount.

Let’s explore the steps of the appraisal appointment and answer some common questions so you know just what to expect when the appraiser arrives at your doorstep!

When you reach the point in the home buying process when an appraisal is needed, the mortgage lender will submit the request for the appraisal to one of their “approved” appraisers. 

Once the assignment is accepted, the appraiser will contact you (or your real estate agent, if you have one) to schedule a visit to the property. 

Exterior or desktop appraisals do not require an interior inspection and will typically be completed without an appointment.

On a personal note, try to be somewhat accommodating – appraisers spend a great deal of time traveling to various areas within a wide coverage zone. It cuts down on travel time and expenses if we can visit properties in the same area on the same day. 

Most appraisers will try their best to be accommodating to your schedule as well. 

When you’re preparing for the appraisal, think of it as getting ready for a houseguest. Tidy up, but don’t feel the need to go overboard. 

An appraiser is looking at the home’s main components and finishes for a sense of the overall condition and quality of the home, not whether the floors are freshly mopped or the laundry is done. 

Fix any obvious maintenance issues. Leaky faucets, chipped paint, or broken fixtures could affect the condition rating.

Gather any documents that contain information about the property. These could include a list of recent improvements or renovations, a survey, house plans, deeds, or any other documentation that might contain information useful to the appraiser.

Pro Tip: These are not always necessary for completing the report, but can contain information that may save time for the appraiser, which they will appreciate!

The appraiser will take measurements to confirm the square footage. However, having a recent survey or house plans can be helpful for accuracy and could contain other useful data.

Don’t be shy about telling the appraiser about upgrades or improvements that have been made.

Both large projects and smaller cosmetic updates can work together to positively impact your home’s overall value. 

While some may be obvious, such as an extensive kitchen renovation, other improvements like insulation, upgraded mechanical components, or other hidden features may not be obvious from a visual inspection. 

An easy way to make sure the appraiser has all the info is to provide a list they can take with them. 

This can be a simple, handwritten notebook page. It’s not necessary to create elaborate spreadsheets with exact costs and dates. 

Jot down things like: 

• Water heater replaced in 2020
• Roof repair made in 2019 
• Master bath renovation 2010 (marble countertops, new flooring, new vanity, new fixtures)
• Whole house painted 2021
• Septic last pumped 1 year ago
• Furnace serviced every 2 years

A simple list like this that the appraiser can put in the work file can be helpful to look back on when they get down to writing the report.

The first thing I do upon arrival is greet the homeowner, introduce myself, and give them a brief rundown of what I’ll be doing. 

My process usually goes as follows:

I walk through the house from one end to the other to get a sense of the floor plan/layout.

As I’m walking through, I take photos, notes, and measurements in certain areas of the home.  

For certain loan types, (or for certain lenders) such as FHA, VA, or USDA loans, the appraiser is also required to view attics, crawlspaces, and the interior of sheds, garages, or other outbuildings.

These loan types also require the appraiser to check functionality of utilities and appliances to make sure they are on and in working order.

After I’ve completed the interior walk-through, I will spend additional time outside to view the exterior and other site improvements.

I advise most homeowners that I prefer to walk through at my own pace and will go over any questions after that. However, some appraisers may prefer that you walk through the house with them. This is a matter of preference.

We understand this may feel a bit invasive, but fear not – whatever condition your home is in, no matter how much clutter is in the closet… not only have we seen it before, but we’ve seen it 100x worse!

The appraiser is not there to view your personal belongings, organizational skills, or even your choice of home decor. If you’re concerned about photos being taken, know that:

A) We must adhere to strict confidentiality guidelines when it comes to personal information. 

B) Most lenders require that photos be taken and may halt the loan process without them.

For a seasoned appraiser, it becomes second nature to overlook things such as belongings and photos.

(Even those stacks of old sports-illustrated magazines in the corner.)

You’d be surprised at some of the things we see. A normal person whose home is “lived in” has nothing to fear!

You know your neighborhood best – Don’t be afraid to mention recent sales you think might be relevant.

While you shouldn’t try to influence or persuade the appraiser to “hit a certain value”, you can share information on recent sales that have occurred, or neighborhood data you think they may want to consider.

For example, I was at a house a few weeks ago, and the owner informed me that although the house next door looked presentable from the outside and had sold last month, it belonged to a hoarder and the house was unlivable on the inside.

I was able to verify this information, which provided a legitimate explanation to the lender as to why I didn’t include that sale in the appraisal report. 

Giving the appraiser a heads-up on things like this will prompt them to dig a bit deeper for useful information. 

This is your opportunity to ask the appraiser about the process and any concerns you might have. They will not discuss the value with you, but they can provide insights into their role in the home-buying process.  

Don’t stress too much!

Appraisers are professionals who just want to do their job in a way that is accurate and most efficient for their clients.

(Most are even nice people!)

Be honest and helpful while the appraiser is at the house, and you’ll have nothing to worry about.

Once the site inspection is complete, the appraiser will spend some time researching your local market, comparing other recent sales to your property, and analyzing the data collected at the time of the inspection.

This information will be evaluated and written into a lengthy report that will be sent to the lender.

In most cases, the report will be submitted to the lender within a couple of days to a week of the appraisal appointment.

Some factors may hold up the process, like a heavy workload or waiting to receive additional information from realtors, zoning departments, or other sources used for verification.

RELATED: HOW MUCH DOES AN APPRAISAL COST?

The short answer is “No“, your home does not need to be spotless or “show ready” at the time of the appraisal. However, make sure all areas are accessible for viewing. 

It’s quite common for homeowners to be in mid-packing mode and the house in disarray when the appraiser comes.

RELATED: COMMON APPRAISAL QUESTIONS

That said, it’s wise to remember that the appraiser does take into consideration how well the home is maintained. Give the impression that the home has been taken care of over the years.

(The list I mentioned above will help.)

Damaged flooring, leaky pipes, or other issues that have been overlooked will likely be considered in determining your home’s condition rating.

No, It is not generally required that you, as the homeowner, be present during the appraiser’s site visit. In my experience, many homeowners prefer to be present, which is also perfectly fine.

In many cases, your real estate agent will meet the appraiser and make sure they have all the information needed.

In addition, most appraisers are members of their local Realtor Association, which allows for access to the lockboxes put on the home by the agent. 

Lockbox access comes with its own set of ethical standards and requirements.

The appraiser is there to view your home and gather pertinent information. If it’s more convenient for you to have a family member or neighbor provide access, that is perfectly acceptable.

As long as we have a way to contact you if questions arise, we are more than capable of finding our way around a home and all the areas we need to observe during the site visit.

If the thought of not being home makes you uncomfortable, please remember that appraisers must adhere to a strict set of ethical and professional standards when it comes to having access to people’s homes. 

I often get requests to come out on weekends or evenings, as some people just can’t be available in the middle of the day due to work, travel, etc.

My response to this is usually to suggest making arrangements with a friend, family member, or trusted neighbor to provide access if at all possible.

If a Saturday or Sunday is the only available option, many appraisers are willing to make a weekend appointment. Just know this may delay the appointment as it has to fit into their schedule.

The site visit portion of the appraisal process typically takes anywhere from 30 to 90 minutes. Complex or larger homes may take additional time to fully view.

Other factors, such as water frontage, significant acreage, or amenities like outbuildings, pools, outdoor living areas, etc. may extend the time needed to complete the appointment.

Remember – the appraisal is not the home inspection.

Home inspections tend to take several hours and require a further degree of inspection to some areas, as well as testing for the functionality of many components.

Blocking off an hour or so for an appraisal appointment is generally sufficient for most properties.

Pro Tip: Testing that certain components and utilities are in functional, working order is also required by the appraiser for FHA, USDA, or VA and some other loan types.

By understanding the purpose of the appraiser’s site visit and what information they are there to gather, you’ll know what to expect during an appraisal inspection.  

So, take a few basic steps to prepare, be accommodating, and your appraisal inspection will be painless!