Appraisal FAQ

A home appraisal is a written opinion of a property's value on a stated date, prepared by a licensed appraiser for a stated purpose. The Consumer Financial Protection Bureau calls it an independent assessment of value. Read what is a home appraisal for the longer explanation.

You state the purpose and the date. In Randy's published process the appraiser inspects the property, studies recent comparable sales and local trends, and writes a report that gives the value. Read how a home appraisal works for the five steps, and ask what scope applies if a lender is involved.

Make every area accessible, and have a dated list of improvements and repairs plus any documents that describe the property. The person who will rely on the report should be named before the visit. A missing document is not a problem in itself, since the appraisal report states what was assumed.

An appraisal is a licensed appraiser's opinion of value, and in Randy's published process it includes an on-site inspection. The Consumer Financial Protection Bureau describes an automated valuation as a computer-generated value from mathematical models. Both are estimates, but they are made differently and used for different purposes.

An appraisal gives an opinion of value, while a home inspection examines the condition of the property's systems and structure. They answer different questions, and one does not replace the other. An appraisal may note visible condition issues, but it is not an inspection of the systems.

In Randy's published process the appraiser looks at the home's condition, upgrades, layout and site, takes measurements and photographs as needed, and asks about changes you have made. The visit is the property inspection step of the appraisal, and it is not a systems inspection of the home.

It depends on the property, the purpose and how soon access is possible, so no single time applies to every appraisal. Ask Randy for the timing when you describe the property, and tell him about any deadline from a lender, an attorney or a court.

It states the property, the purpose, the date the value applies to and the intended users. It then shows the comparable sales and the reasoning behind the value, so a reader can follow how the appraisal reached its conclusion. Ask what scope applies if a lender or attorney is involved.

The person who orders it, and anyone else the engagement says should get a copy. Intended users, who may rely on the report, and actual recipients are agreed when you order and are not always the same. The engagement decides, so say who should receive the appraisal report.

By comparing the property with similar properties that sold recently and adjusting for the differences between them, then reconciling the evidence into one opinion as of a stated date. How appraisers determine home value explains the method in plain language.

Who pays is agreed in the engagement and differs by situation. On a mortgage, the lender may order the appraisal and require the borrower to pay for it, and the Consumer Financial Protection Bureau says the lender may charge a reasonable fee for the cost of preparing it. You cannot be charged a fee for copies of the appraisal.

The size and type of the property, its complexity, the purpose, the timing and access all change the fee. No dollar figure applies to every appraisal, so Randy quotes it after you describe the property. Ask what the fee includes and when the report will be delivered.

The Consumer Financial Protection Bureau suggests a buyer may consider renegotiating the price or reviewing the appraiser's work carefully to understand how the value was reached. A buyer may also obtain an independent appraisal, which can cost extra. Start by reading the comparable sales in the appraisal report.

The spouses or their attorneys agree this when they order, so ask about the arrangement when you request a divorce appraisal quote. The engagement terms decide who pays, and settling it before the visit keeps both sides working from the same expectations about the fee.

Usually the executor, the trustee or an heir orders an estate appraisal, often on the advice of the estate's attorney. See the estate appraisal page for the date and records that help. The engagement says who may rely on the report and who receives a copy.

In an estate the date is often the date of death, and in a divorce it is the date you agree with counsel. The report states the date on its first page. Tell Randy the date and the reason for it when you ask about an appraisal.

Search the California Bureau of Real Estate Appraisers record by name or license number. It shows the license level, status and dates, and the federal Appraisal Subcommittee registry lists appraisers too. The verification guide explains each field, so you can check any appraiser before you order an appraisal.

It is used to respond to your request, and the form on the contact page is the way to send it. If the information is sensitive, ask how it will be handled before you send it. Describing the property and the purpose is usually enough for a first reply about an appraisal.