What to Expect During a Home Appraisal

A home appraisal is a professional assessment that determines a property’s fair market value. This evaluation is a standard component in various real estate transactions, including when a home is bought, sold, or refinanced. Lenders frequently require an appraisal to ensure the amount of a loan does not exceed the property’s actual worth, thereby protecting their investment. Beyond lending, appraisals provide an unbiased opinion of value, offering reassurance to both buyers and sellers that the agreed-upon price aligns with market realities.

Preparing for the Appraisal Visit

Before an appraiser arrives, homeowners can take several steps to ensure a smooth and comprehensive evaluation. Gathering specific documents is a helpful starting point. This includes the property deed, any available surveys or plot plans, and the most recent property tax bill. Providing a detailed list of all significant home improvements and upgrades, along with their completion dates and associated costs, is beneficial. Documentation such as permits for major renovations, or even previous appraisal reports, offers context about the property’s history and enhancements.

Beyond paperwork, preparing the home itself is important. Ensuring the property is clean, decluttered, and well-organized allows the appraiser to easily access all areas. Confirming that all rooms, including attics, basements, and crawl spaces, are accessible expedites the visit. Addressing minor repairs, such as leaky faucets or broken light fixtures, indicates good maintenance, which contributes positively to the appraiser’s impression of the home’s condition.

If the property is part of a homeowners association (HOA) or condominium, having relevant documents detailing fees and covenants ready is useful for the appraiser. A written “brag sheet” summarizing key features, energy-efficient upgrades, or unique amenities that might not be immediately obvious helps ensure the appraiser considers all value-adding elements. This proactive approach helps the appraiser conduct a thorough review and accurately reflect the property’s value.

During the Appraisal Visit

During the appraisal visit, a licensed appraiser conducts a detailed inspection of the property. This process involves measuring the home’s exterior to confirm its square footage, and often measuring interior rooms as well. The appraiser will take photographs of both the interior and exterior to document the property’s condition and features. These photos capture the condition of living spaces, kitchens, bathrooms, and exterior elements like the roof and foundation.

The appraiser inspects the condition of components, such as the roof, foundation, plumbing, electrical systems, and heating, ventilation, and air conditioning (HVAC) units. They also notes the number of bedrooms and bathrooms, the quality of finishes, and any special features or amenities like a fireplace, swimming pool, or landscaping. This visual assessment provides the appraiser with direct observations about the property’s physical characteristics and overall upkeep.

The duration of an on-site appraisal visit varies, ranging from 30 minutes for a standard home to several hours for larger or more complex properties. While the appraiser focuses on inspection, they may ask the homeowner questions about the property’s history, recent renovations, or unique characteristics. Homeowners are not required to accompany the appraiser throughout the visit, but being available to answer questions is helpful.

Understanding the Appraisal Report

Following the on-site visit, the appraiser compiles their findings into an appraisal report. The timeline for receiving this report varies, ranging from a few business days to up to two weeks, depending on the appraiser’s workload and the complexity of the property. This report details the appraiser’s estimated fair market value of the home.

A standard appraisal report includes several components. It provides a description of the property, covering its location, size, age, and overall condition. A section is dedicated to the comparable sales, or “comps,” which are recently sold, similar properties in the vicinity. The report will outline how adjustments were made to the comparable sales to account for differences in features, size, and condition to determine the property’s value.

The report also discusses market conditions in the neighborhood, noting trends that influence property values. It culminates in the appraiser’s final valuation conclusion, the estimated market value. While the lender orders the appraisal and receives the report first, federal regulations grant borrowers the right to receive a copy of the completed appraisal report from their lender before loan closing.

Disputing an Appraisal

If a homeowner believes the appraised value is inaccurate or finds factual errors within the report, they can dispute the appraisal. The first step involves reviewing the appraisal report for factual errors or omissions. This review should also examine the comparable sales used by the appraiser, looking for overlooked suitable properties or questionable adjustments.

Concerns about the appraisal are communicated through the lender, who ordered the report. Homeowners can request a “reconsideration of value” (ROV), a formal request for the appraiser to re-evaluate their analysis. The ROV process aims to correct errors or consider additional, relevant information, not simply change the value due to dissatisfaction.

To support a reconsideration request, provide evidence. This might include documentation of unnoted property features or upgrades, or data on additional comparable sales that better reflect value. The lender forwards this information to the appraiser for review. While a second appraisal might be an option, it is not always granted and usually comes at an additional cost.