What Does a Home Appraisal Consist Of?

During an appraisal, an appraiser will visit your home.

A home appraisal is performed to estimate the value of a property and may be required when refinancing a loan, relocating or for tax purposes. It's best to use an appraiser who has a state license and knowledge of the market in order to ascertain the true market value of a home.

Physical Inspection

The appraiser will make an appointment to visit your home. He will photograph the outside and inside of the home and take measurements to ensure accurate information regarding the size of the house. He'll make note of the amenities and the condition of the home.

Information Analysis

The appraiser looks at many factors that affect the value of a home. He'll analyze information about the type of neighborhood, its condition and attractiveness, and compare your home to other homes sold in the area. He'll take into consideration economic conditions, environmental factors and the location, as well as factoring in mortgage availability and current market trends.

Estimate

To come up with a dollar value for a home, the appraiser studies properties that have sold most recently in the area that have similar features and size. He makes adjustments to the selling price by making comparisons. If the house that sold is in better condition than yours or has less appeal, he will make adjustments accordingly to come up with a value that is most accurate.

References

• Certified Appraisers Network: What is an appraisal?
• NOAA Corporate Finance and Administrative Services Offices:Appraisals: Questions & Answers