What Is Involved In A Real Estate Appraisal?

A real estate appraisal is an independent opinion of property value for a defined purpose and effective date.

The Inspection Process

For an on-site assignment, the appraiser visually observes the home and grounds. The visit may include photographs, measurements, room counts, layout and condition notes. Visible defects and major system features may be recorded; this does not replace a home inspection.

Comparable Properties Analysis

The appraiser researches sales of properties with relevant characteristics, using sources such as listing records, tax records and public land records. Location, size, age, condition and amenities inform the comparisons and analysis of differences.

Key Factors Evaluated

Appraisers consider multiple dimensions when determining value, including the property’s location, neighborhood characteristics, square footage, lot size, number of rooms, condition and age of major systems, recent renovations, special amenities (pools, fireplaces, garages), school district quality, and accessibility to transportation. They also review real estate taxes, homeowners association fees, and current market trends in the area.

The Final Report

The report explains the property, effective date, scope, evidence and conclusion. Supporting exhibits may include maps, a sketch and photographs, depending on the assignment. Agree on delivery timing before work begins.