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Documentation Index

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The appraisal process involves property inspection, market research, and analysis to develop an opinion of value. Understanding each step helps property owners prepare and know what to expect. A typical residential appraisal takes one to two weeks from order to delivery.

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Process Overview

1

Appraisal ordered

Lender or property owner orders appraisal. For mortgage transactions, order goes through AMC or lender’s approved panel. Private appraisals can be ordered directly from appraiser.
2

Appraiser assigned

Qualified appraiser in the property’s area accepts assignment. Appraiser reviews order details and schedules inspection.
3

Inspection scheduled

Appraiser contacts property owner or agent to schedule. Inspection typically requires 30 minutes to 2 hours depending on property size and complexity.
4

Property inspection

Appraiser visits property to assess condition, measure, photograph, and note features. May ask questions about updates and improvements.
5

Market research

Appraiser researches comparable sales, market conditions, and neighborhood factors. Identifies 3-6 comparable properties.
6

Analysis and adjustments

Appraiser compares subject property to comparables, making adjustments for differences. Develops value conclusion.
7

Report preparation

Findings documented in standardized report format. Includes photos, maps, comparable data, and value conclusion.
8

Quality review

For mortgage appraisals, AMC or lender reviews report for completeness and credibility before accepting.
9

Report delivery

Final report delivered to lender and borrower. Borrower entitled to copy at least 3 days before closing.

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The Property Inspection

Appraiser evaluates from outside:
  • Overall condition and curb appeal
  • Roof condition and material
  • Siding and exterior finishes
  • Foundation visible condition
  • Windows and doors
  • Garage and outbuildings
  • Landscaping and lot features
  • Driveway and walkways
  • Property boundaries
Inside the home, appraiser notes:
  • Room count and layout
  • Square footage (measured or verified)
  • Kitchen condition and features
  • Bathroom count and condition
  • Flooring types and condition
  • Wall and ceiling condition
  • Built-in features
  • Basement and attic condition
  • Mechanical systems (HVAC, water heater)
  • Overall quality and condition
Appraiser measures or verifies square footage:
  • Gross living area (above-grade finished space)
  • Basement square footage (below-grade, counted separately)
  • Garage square footage
  • Porch and deck areas
Measurements should match tax records or prior appraisals. Discrepancies are noted and explained.
Standard photos include:
  • Front of property
  • Rear of property
  • Street scene
  • Kitchen
  • Main bathroom
  • Each bedroom
  • Living areas
  • Basement (if applicable)
  • Any issues or notable features
Photos document condition at time of inspection.
Appraisals are not inspections. Appraisers do not:
  • Test systems (electrical, plumbing, HVAC)
  • Move furniture or stored items
  • Enter crawl spaces or walk roofs
  • Identify hidden defects
  • Guarantee condition
  • Check for code compliance
Home inspection is separate service for condition assessment.
Appraisers note visible condition but don’t test systems or identify hidden problems. A property can appraise at full value while having issues only an inspection would reveal.

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What Appraisers Evaluate

Location significantly impacts value:
  • Neighborhood quality and desirability
  • School districts
  • Proximity to amenities
  • Traffic and noise levels
  • Views
  • Adjacent property uses
  • Market trends in area
Location factors can add or subtract significant value.
Lot features affect value:
  • Lot size
  • Shape and usability
  • Topography
  • Landscaping
  • Drainage
  • Utilities available
  • Easements and encroachments
  • Zoning compliance
Building characteristics:
  • Size (gross living area)
  • Age and effective age
  • Quality of construction
  • Design and layout functionality
  • Number of bedrooms and bathrooms
  • Garage size and type
  • Basement (finished vs unfinished)
  • Additional structures
Physical state of property:
  • C1: New construction
  • C2: Recently built or renovated like new
  • C3: Well maintained, minimal deferred maintenance
  • C4: Adequately maintained, minor deferred maintenance
  • C5: Fair condition, needs repairs
  • C6: Poor condition, significant repairs needed
Condition rating directly affects value conclusion.
Construction quality rating:
  • Q1: Unique, highest quality custom construction
  • Q2: Custom design and high quality materials
  • Q3: Above average quality
  • Q4: Standard quality
  • Q5: Basic quality
  • Q6: Below standard quality
Higher quality supports higher value.
Improvements add value:
  • Kitchen remodels
  • Bathroom updates
  • New roof
  • Updated HVAC
  • New windows
  • Flooring replacement
  • Additions
Appraiser notes age and quality of updates. Recent updates in good condition add more value than older renovations.
Layout and design practicality:
  • Room flow and access
  • Bedroom and bathroom ratio
  • Kitchen functionality
  • Storage adequacy
  • Bedroom size
  • Ceiling heights
Poor layout or unusual features can reduce value.

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Valuation Approaches

Primary method for residential appraisals. Compares subject to recent sales of similar properties.Process:
  1. Identify comparable sales (similar size, age, location, features)
  2. Adjust for differences between comparables and subject
  3. Reconcile adjusted values to develop opinion
Example adjustments:
  • Subject has 3 bedrooms, comp has 4: Adjust comp down
  • Subject has updated kitchen, comp has original: Adjust comp up
  • Subject is 2,000 sq ft, comp is 1,800 sq ft: Adjust comp up
Most weight given to most similar comparables.
Estimates value based on cost to build new minus depreciation, plus land value.Formula: Land value + (Cost to build new - Depreciation) = ValueUsed when:
  • New construction
  • Unique properties with few comparables
  • Special-use properties
  • Insurance valuations
Less reliable for older homes where depreciation is difficult to estimate.
Values property based on income it could generate.Used for:
  • Rental properties
  • Multi-family buildings
  • Commercial properties
Calculation: Net operating income / Capitalization rate = ValueRarely used as primary approach for single-family homes but may support value for investment properties.
Appraiser weighs all applicable approaches to reach final value.For typical residential property, sales comparison approach receives most weight. Other approaches may support or verify the conclusion.Final value is appraiser’s opinion based on all available data.

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Selecting Comparables

Best comparables are:
  • Same neighborhood or competing area
  • Similar size (within 20% of gross living area)
  • Similar age (within 10-15 years)
  • Same style (ranch to ranch, colonial to colonial)
  • Same bedroom and bathroom count
  • Sold within 6 months
  • Arms-length transaction (not foreclosure, family sale)
Standard appraisals include 3-6 comparable sales.Minimum: 3 comparables required for most mortgage appraisalsMore used when:
  • Market is uncertain
  • Available comparables require significant adjustment
  • Property has unusual features
Comparables should be nearby:
  • Same subdivision preferred
  • Same neighborhood acceptable
  • Competing neighborhoods if necessary
  • Different market areas require explanation
Urban areas have tighter distance requirements than rural areas with fewer sales.
Large adjustments reduce comparable reliability:
  • Individual adjustment over 10% raises questions
  • Total adjustments over 25% suggest weak comparable
  • Net adjustments over 15% need explanation
Appraisers prefer comparables requiring minimal adjustment.
Appraisers cannot use listings (properties for sale but not sold) as comparables. Only closed sales demonstrate what buyers actually paid. Pending sales may be considered as supporting data.

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Preparing for an Appraisal

Basic preparation helps inspection go smoothly:
  • Ensure access to all areas (attic, basement, garage)
  • Clear clutter blocking views of rooms
  • Make sure utilities are on
  • Secure pets
  • Remove vehicles from driveway
Deep cleaning isn’t necessary but property should be accessible.
Helpful information for appraiser:
  • List of improvements with dates and costs
  • Permits for major work
  • Survey if available
  • HOA documents with fees
  • Recent utility bills (for income properties)
  • Previous appraisal (if available)
Appraiser isn’t required to use this information but it provides helpful context.
You can provide information about sales you’re aware of:
  • Recent neighborhood sales
  • Similar properties that sold well
  • Sales that support your value expectations
Appraiser will verify and consider but makes independent decision on which comparables to use.
Avoid actions that could be problematic:
  • Don’t pressure appraiser for specific value
  • Don’t argue during inspection
  • Don’t misrepresent improvements or features
  • Don’t prevent access to any area
  • Don’t accompany appraiser room-to-room (let them work)
Be available for questions but let appraiser conduct inspection independently.

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Timeline Factors

StageTypical Duration
Order to scheduling1 to 3 days
Scheduling to inspection2 to 5 days
Inspection30 min to 2 hours
Report preparation2 to 5 days
Review and delivery1 to 2 days
Total7 to 14 days
  • Busy market (appraiser backlog)
  • Rural location (limited appraiser availability)
  • Complex property (more research needed)
  • Access issues (scheduling difficulties)
  • Missing information (incomplete order)
  • Revision requests (lender questions)
  • Holiday periods
Faster turnaround available for additional fee:
  • 2-3 day rush: Additional $50 - $150
  • 24-hour rush: Additional $100 - $300+
Not always available depending on appraiser workload.

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After the Inspection

After inspection, appraiser completes research and report. No contact from appraiser during this period is normal.Contacting appraiser to ask about value is inappropriate and may delay report.
Borrowers must receive copy of appraisal at least 3 business days before closing (TILA requirement).Review report for accuracy:
  • Correct property characteristics
  • Accurate room count and square footage
  • Improvements noted
  • Reasonable comparables used
Options when appraisal comes in low:
  • Request reconsideration of value
  • Renegotiate purchase price
  • Increase down payment
  • Challenge with additional comparables
  • Order second appraisal (if lender allows)
  • Walk away (if contingency allows)
See Low Appraisals section for detailed guidance.

Next: Understanding the Report

Reading and interpreting appraisal reports

Find Appraisers

Research licensed appraisers in your area