How to Get a House Appraised and What to Expect

A home appraisal is a professional assessment of a property’s market value. This unbiased opinion is often required for real estate transactions, such as securing a mortgage, refinancing, or obtaining a home equity line of credit. The primary purpose of an appraisal is to assure lenders the property’s value adequately supports the loan amount, mitigating financial risk. It confirms the agreed-upon price aligns with the home’s actual worth.

Selecting a Qualified Appraiser

Choosing a licensed appraiser is an important step. Lenders typically order appraisals to ensure impartiality, often working with Appraisal Management Companies (AMCs) that maintain panels of qualified appraisers. You can also seek referrals from real estate agents or use online directories from professional organizations like the Appraisal Institute or the American Society of Appraisers.

Verify an appraiser’s credentials and experience. Appraisers are licensed or certified by state regulatory boards, with licenses categorized as Licensed Residential, Certified Residential, or Certified General Appraiser. A Licensed Residential Appraiser handles non-complex one-to-four unit properties up to a certain value. Certified Residential Appraisers handle more complex residential appraisals. Certified General Appraisers have the highest licensing level and can appraise any real property.

Choose an appraiser with experience in your local market and with properties similar to yours. This local expertise helps ensure they understand neighborhood trends and comparable sales data. Inquire about their years in the business and if they have appraised properties in your immediate area. Appraisal fees vary by location, property complexity, and loan type, but a standard residential appraisal typically ranges from $300 to $600.

Preparing Your Home for the Appraisal

Before the appraiser’s visit, gather relevant documentation. This includes a list of major home improvements or renovations, noting completion dates, estimated costs, and, if available, copies of permits. Documents such as recent property tax records, a plot plan or survey, and information about homeowners’ association fees or covenants can also be beneficial.

Ensure the home is clean, tidy, and accessible. A clutter-free environment allows the appraiser to easily navigate and thoroughly inspect all areas of the property, including the garage, attic, and basement. Addressing minor repairs, such as a dripping faucet, squeaky door, or chipped paint, can enhance the appraiser’s overall impression of the home’s maintenance. While appraisers are trained to look beyond minor aesthetic issues, a well-maintained appearance can contribute to a positive assessment of the property’s condition.

Highlight key features or significant upgrades. This might involve compiling a “brag sheet” that details permanent fixtures and improvements, such as a new roof, updated HVAC system, kitchen remodels, or energy-efficient installations like solar panels. This list ensures the appraiser is aware of all value-adding enhancements, especially those that may not be immediately obvious. Ensure all areas of the home are readily accessible and pets are secured to facilitate the appraiser’s work.

What Happens During the Appraisal

During the on-site visit, the appraiser conducts a thorough examination of the property, typically lasting from 30 minutes to a few hours depending on the home’s size and complexity. The appraiser measures the home’s exterior dimensions to verify square footage and may also create a sketch of the floor plan. Detailed photographs of both the interior and exterior are taken to document the property’s condition and features.

The appraiser performs a visual inspection of all accessible areas, noting the condition of components like the roof, foundation, HVAC system, plumbing, and electrical systems. They assess the overall quality of construction, materials used, and the level of maintenance. Unlike a home inspection, which focuses on identifying defects or necessary repairs, an appraisal primarily evaluates how these factors contribute to the property’s market value.

In addition to the physical characteristics of the home, the appraiser considers external factors that influence value. This includes the property’s location, the condition of the surrounding neighborhood, and proximity to amenities such as schools, parks, and transportation. The appraiser’s work involves analyzing recent sales of comparable properties, often referred to as “comps,” within the immediate area. This data, typically sourced from the Multiple Listing Service (MLS) and public records, allows the appraiser to make adjustments for differences between the subject property and recently sold homes to arrive at an informed value opinion.

Understanding Your Appraisal Report

Upon completion of the appraisal, the appraiser compiles their findings into a comprehensive report, most commonly presented on the Uniform Residential Appraisal Report (URAR), also known as Fannie Mae Form 1004. This standardized form ensures consistency in reporting and analysis for single-family dwellings. The report provides an estimated market value of the home and details the methodology used to arrive at that valuation.

The appraisal report typically includes a detailed description of the subject property, covering its address, size, age, physical characteristics, condition, and any permanent improvements. It also contains an analysis of the local market conditions and a section dedicated to the comparable sales data. This section lists the “comps” used, along with adjustments made for any differences in features, size, or condition between the subject property and the comparable sales.

The report will often include photographs of the subject property and the comparable sales, a sketch of the property’s layout, and a map showing the location of the subject and comps. The appraiser’s final opinion of value is clearly stated, along with a certification that the appraisal was conducted in an unbiased manner and in accordance with professional standards. While the lender is the primary client for the appraisal, borrowers are generally entitled to receive a copy of the report, typically within a few business days after the on-site visit.