December 11, 2024
Real Estate Appraisal FAQs (1–60)A real estate appraisal is a professional, unbiased estimate of a property's market value, used for buying, selling, refinancing, divorce, or tax purposes.
A licensed or certified real estate appraiser conducts the appraisal using market data, inspections, and standard valuation approaches.
You need a home appraisal to confirm the property's fair market value for mortgage approval, refinancing, or legal purposes such as divorce or estate planning.
Appraisers determine value using recent comparable sales (comps), property condition, location, lot size, square footage, and market trends.
No. An appraisal estimates value; an inspection checks for physical issues or defects in the property.
The appraiser inspects the interior and exterior, takes photos and measurements, and analyzes comparable sales before delivering a written report.
The inspection takes 30–90 minutes, and the full appraisal report is typically completed within 3–7 business days, depending on complexity.
Yes, homeowners or real estate agents can attend, but they may not influence the appraiser's value opinion.
Provide your property tax bill, list of renovations, permits, survey (if available), and recent comparable sales in your area.
Yes. Appraisers take both interior and exterior photos as part of the documentation required by lenders and appraisal standards.
Common types include full (interior/exterior), exterior-only (drive-by), desktop (no visit), and hybrid (with third-party inspection).
It's conducted without a site visit, using online data and records, and is typically used for low-risk lending scenarios.
The appraiser only views the exterior and uses market data to estimate value—often used for refinances or equity loans.
Residential appraisals focus on homes (1–4 units), while commercial appraisals are for income-producing properties and are more complex.
It estimates a property's value as of a specific date in the past—often used for estate, tax, or legal purposes.
The three methods are: Sales Comparison Approach, Cost Approach, and Income Approach.
Comparable properties (comps) are the primary basis for estimating value. The appraiser adjusts based on size, location, upgrades, and sale date.
Yes. Kitchens, bathrooms, flooring, roofs, and major system upgrades typically improve value.
Yes, aesthetics can influence value slightly, particularly if they are significantly above or below neighborhood norms.
No. Only real property (land and permanent structures) is included—furniture or appliances generally aren't unless they're built-in.
Residential appraisals typically range from $750.00 and upwards, depending on location, size, and complexity.
The buyer usually pays during purchase transactions. For refinancing, the homeowner typically pays.
Usually not. Once the appraiser completes the inspection, the fee is considered earned.
Yes. Fees vary due to market demand, cost of living, and property type.
Generally, yes. Larger or custom homes require more time and analysis.
Options include renegotiating the price, increasing your down payment, requesting a second opinion, or disputing the report.
Yes. In some cases, you can submit a Reconsideration of Value (ROV) with additional comparables or documentation to the lender.
Yes—depending on the terms of the engagement. If you hired the appraiser directly, the report goes to you.
Typically 90–120 days. A new or updated appraisal may be required if market conditions change.
Not usually. Each lender typically orders their own appraisal to ensure compliance.
Yes. Market conditions such as rising or falling prices directly influence valuation.
Significantly. School districts, amenities, crime rates, and neighborhood upkeep are major factors.
Indirectly. Poorly maintained neighboring properties can reduce marketability and potentially value.
The appraiser may expand the search radius, use older sales, or adjust more carefully to find relevant data.
Possibly. If they are recent or common in the area, they may impact value, though adjustments are made.
Yes, most lenders require one, though some may waive it for low-risk scenarios.
Not for mortgage-related appraisals. Lenders use third-party AMCs. However, you can select an appraiser for private valuations.
It impacts the loan-to-value (LTV) ratio. If the value comes in low, loan terms may change.
That's favorable—it means you may have built-in equity or are paying less than market value.
You can dispute it through the lender with supporting evidence, such as better comps or factual corrections.
Yes. A pre-listing appraisal helps set a realistic asking price and aids negotiations.
No, but buyers can order one for independent verification of value.
Desktop and hybrid appraisals may be done remotely if the lender accepts them.
"As-is" reflects current value. "Subject-to" appraises value assuming proposed repairs or renovations are completed.
Yes, but it requires different valuation techniques, and fewer comps may be available.
Yes. In Canada, they are licensed by provincial boards and must follow CUSPAP standards.
Yes. Appraisals are often used in legal proceedings like divorce, estate settlement, and litigation.
No. Undue influence or coercion violates ethical standards and legal guidelines.
It should be reported to the regulatory body or lender. Fraud is a serious offense.
Look for professional designations such as CRA, P.App. (residential) or AACI, P.App. (commercial), plus provincial licensure.
Yes. Courts and lawyers often require a professional, unbiased value to determine asset division.
Yes. Each party may hire their own appraiser, or both can agree on one neutral appraiser.
Methodologically, no—but it must comply with legal standards and may include court-ready documentation.
No. The appraisal only provides value. Who retains the home is decided through negotiation or court ruling.
Absolutely. The appraised value can guide how much one spouse would need to pay the other to retain ownership.
Parties may seek a second opinion or have a third-party review both reports and issue a reconciled value.
Yes. Appraisals are commonly used to facilitate equitable decisions during alternative dispute resolution.
If necessary and agreed upon, yes. The appraiser may act as an expert witness, though additional fees may apply.
The appraiser can proceed with an exterior-only or drive-by appraisal, but interior access is ideal for accuracy.
Generally, it is shared with both parties and their legal representatives, but not beyond unless ordered by the court.
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