What is an appraisal?
A professional, unbiased estimate of your home’s market value. Appraisers use recent sales, property condition, and market data to determine what your home is worth.
What does an appraiser do?
They inspect your home, analyze the market, and provide a detailed report with a supported value conclusion.
Why would I need one?
Common reasons include buying, selling, refinancing, lowering property taxes, removing PMI, settling an estate or divorce, fighting a tax assessment, or meeting IRS requirements.
Appraisal vs. Home Inspection
| Feature | Appraisal | Home Inspection |
|---|---|---|
| Purpose | Determine market value | Evaluate condition and safety |
| Performed by | State-certified appraiser | Licensed/certified home inspector |
| Focus | Value of property | Physical condition and defects |
| Report Type | Formal appraisal report | Inspection report with findings and recommendations |
| Required by Lenders? | Yes | No (optional but recommended) |
| Covers | Property size, features, market trends | Structure, systems, safety, maintenance needs |
Appraisal vs. CMA
| Feature | Appraisal | CMA |
|---|---|---|
| Performed by | State-certified appraiser | Realtor |
| Purpose | Legally recognized market value | Pricing/market guidance |
| Standards | USPAP (formal standards) | Realtor ethics / local knowledge |
| Physical Inspection | Usually Required | Optional, often skipped |
| Use for Lenders | Yes | No |
| Time & Cost | More time-consuming, higher cost | Quick, lower cost |
| Objectivity | Independent and unbiased | Informal, may include marketing strategy |
What’s in the report?
Property details, market data, legal info, comparable sales, and the appraiser’s analysis leading to a supported value.
How do I prepare?
Make sure the appraiser can easily access all areas, including mechanical systems. Have documents ready if you have them (survey, tax bill, plans, etc.).
What is PMI and how do I remove it?
PMI is insurance added when your down-payment is under 20%. Once you reach 20% equity, an appraisal can help remove PMI and lower your payment.
Who owns the appraisal?
If a lender orders it, they own it.
If you order it directly, you control how it’s used.
Which renovations add value?
Kitchens and bathrooms generally offer the best return, though it varies by market.