What Not to Say to a Property Appraiser

A property appraisal is an objective valuation process essential for buying, selling, or refinancing real estate. This assessment provides an independent opinion of a property’s market value, distinct from a listing price or a homeowner’s desired sale amount. The appraiser serves as an impartial third party, ensuring unbiased, credible valuation. Understanding the appraiser’s role and communication helps facilitate a smooth, accurate appraisal.

The Appraiser’s Purpose

A property appraiser’s role is to provide an unbiased, independent opinion of value. This valuation relies on analysis of market data and property characteristics. Appraisers are not real estate agents, loan officers, or home inspectors; their function focuses solely on value assessment. They adhere to professional standards and ethical guidelines, such as the Uniform Standards of Professional Appraisal Practice (USPAP), ensuring objectivity.

Their valuation is based on factual data, including recent comparable sales, property condition, and unique features, rather than personal opinions. This objective approach is mandated by regulations like the Appraiser Independence Requirements (AIR), preventing external pressures from influencing judgment. These requirements protect consumers and maintain trust in the real estate market.

Directing the Appraiser to a Specific Value

Homeowners should avoid influencing an appraiser’s valuation by suggesting a specific price or outcome. Comments like “I believe the house is worth more” or “I’ll be happy as long as it appraises for at least the sales price” can be interpreted as attempts to pressure the appraiser. Such statements compromise independence and violate ethical obligations.

Appraisers must remain impartial, basing findings solely on verifiable data and professional judgment. Expressing a target price or loan amount is irrelevant to the appraisal, as the appraiser’s task is to provide an objective market value. Attempts to steer the valuation can lead to scrutiny and undermine the credibility of the appraisal.

Discussing Personal Financial Circumstances

Do not discuss personal financial details with the appraiser. This includes information about mortgage, debt, income, or reasons for buying, selling, or refinancing. Statements such as “I need this appraisal to come in high to qualify for my loan” or “I’m desperate to sell” are not relevant to the property’s market value.

The appraiser’s valuation is solely about the property’s market value, not financial needs or situation. Sharing such personal information can be perceived as an attempt to bias the valuation, which appraisers must resist. Their duty is to assess the property objectively, regardless of homeowner circumstances.

Overstating Property Condition or Features

Avoid exaggerating or misrepresenting the property’s condition, features, or upgrades. Appraisers are trained professionals who identify and assess property attributes. Providing misleading information, even if well-intentioned, can damage credibility and lead the appraiser to scrutinize the property for flaws.

Be truthful and factual about the property’s current state, including defects or maintenance issues. Distinguish between factually presenting improvements and subjectively overstating their impact or concealing known problems. Unpermitted additions or DIY projects without proper documentation might even be viewed as liabilities rather than value enhancements.

Providing Relevant Property Information

While certain statements are best avoided, homeowners can provide helpful information to an appraiser. Prepare a written list of significant home improvements, renovations, or additions, including dates, costs, and permits obtained. This documentation helps the appraiser understand value-adding changes.

Include details on property taxes, utility costs, and homeowners’ association (HOA) fees, as these contribute to market appeal and cost of ownership. Highlight unique features not immediately obvious, such as smart home technology, specialized insulation, or updated major systems like roofing or HVAC. Presenting this information concisely, ideally in a well-organized document, allows the appraiser to consider all relevant factors in their assessment.