Home Appraisal FAQs

What is an appraisal?

A home appraisal is used to determine a property’s “true” value. Professional real estate appraisers inspect a home’s condition and features, then compare it to recently sold homes in the nearby housing market. The appraiser will judge how different factors — like plot, location, upgrades, amenities, and square footage — impact your home’s value when compared to other similar properties (called “comps”). Ultimately, appraisers come up with a fair market value for the home.

Who does the appraisal?

All appraisers must hold a state license or certification. It’s important for the appraiser to be an objective third party without any interest in the outcome of the real estate transaction. This allows them to create an unbiased opinion on the value of your home.2

The appraiser’s job is to make sure all members of the real estate transaction — buyer, seller, and lender — are getting a fair deal.

Why get an appraisal?

A real estate appraisal is central to the buying and selling of properties.

There are other situations, however, which can benefit from an appraisal from a licensed and certified appraisal company. They include:

• Estate settlement
• Marital divorce
• Residential investment and “flipping”
• Bankruptcy
• Home measurement
• Property pre-listing, pre-purchase and “for sale by owners” (FSBO)
• Financial planning and trusts
• Private Mortgage Insurance (PMI) removal
• Pre-foreclosure and short sales
• Tax assessment appeals