Real Estate Appraisal FAQ

Question 1

What is a home appraisal and why does it matter?

Accepted Answer

A home appraisal is a licensed or certified appraiser's opinion of what a home would sell for on a given date. Lenders need one before they fund most mortgages, and courts, executors and county boards rely on them too. In Puget Sound, where value can change street to street, a local appraiser keeps the number honest.

Question 2

How does an appraisal differ from a home inspection?

Accepted Answer

An appraisal answers what the home is worth. An inspection answers what is wrong with it. The appraiser notes condition because it affects value, but does not test the furnace, crawl into the attic insulation or write a repair list. Most buyers need both.

Question 3

What is a residential appraisal and when do I need one?

Accepted Answer

A residential appraisal values a property with one to four dwelling units: a house, a condo, a townhome or a small multifamily building. You need one to buy or refinance with a loan, settle an estate, divide property in a divorce, appeal a tax assessment or price a home before listing.

Question 4

What does a certified residential appraiser do that a licensed appraiser cannot?

Accepted Answer

Washington issues separate credentials for licensed, certified residential and certified general appraisers (Washington State Department of Licensing). A certified residential appraiser has met higher education and experience requirements than a licensed one, and some lenders require certified appraisers on larger or more complex loans.

Question 5

What qualifications should I look for in an appraiser?

Accepted Answer

Look for an active Washington license or certification, then ask about experience with your kind of property. A waterfront lot, a condo with a thin HOA budget and a rural parcel with a well each call for different comparables. Check any credential on the Department of Licensing site before you hire.

Question 6

What factors does an appraiser consider when valuing a home?

Accepted Answer

Location, living area, bedroom and bath count, lot size, age, condition, quality of finishes, view and recent sales nearby. Around here, water access, ferry commutes, school district lines and the slope of the lot also show up in sale prices, so they show up in the appraisal.

Question 7

How is market value different from assessed value?

Accepted Answer

Market value is what a typical buyer would pay on the open market, measured by an appraiser from recent sales. Assessed value is the county assessor's figure for property tax, set by mass appraisal across thousands of parcels at once. The two often differ, sometimes by a lot.

Question 8

What is a mortgage appraisal and who orders it?

Accepted Answer

It is the appraisal your lender uses to confirm the home supports the loan. Fannie Mae's Appraiser Independence Requirements bar loan production staff, brokers and agents from selecting the appraiser, so the lender or an appraisal management company orders it. The borrower usually pays the fee.

Question 9

What should I know about a refinance appraisal?

Accepted Answer

The value sets how much equity you have, which drives your loan amount and terms. Have a list of improvements with dates ready, fix small visible problems and make every room reachable. Ask your lender about the rate lock date so the appraisal is not the thing that runs the clock out.

Question 10

What is a purchase appraisal and how does it protect me?

Accepted Answer

The buyer's lender orders it to check that the agreed price is supported by the market. If it comes in low, an appraisal contingency in your contract may let you renegotiate, challenge the value or walk away. It keeps a buyer from borrowing against a price nobody else would pay.

Question 11

What is a divorce appraisal and how does it work?

Accepted Answer

It values the family home so both sides can divide it fairly. Couples often agree on one neutral appraiser, which usually costs less and avoids dueling reports. Gerry Allard has served as an expert witness in multiple landmark legal cases, so our divorce reports are written to be explained on the stand if it comes to that.

Question 12

What is an estate appraisal and when is it required?

Accepted Answer

It values real property as of the owner's date of death, for estate tax returns, dividing assets among heirs or setting a sale price. Because the date is in the past, the appraiser uses sales that closed around that date and describes the home as it was then.

Question 13

What is a probate appraisal?

Accepted Answer

It is an estate appraisal used in probate, when a court oversees settling the estate. The effective date is usually the date of death. Executors and their attorneys use it to inventory the estate and divide or sell the property, so the report needs to be clear about the date and the method.

Question 14

Should I get a pre listing appraisal before I sell?

Accepted Answer

If the price is hard to call, yes. A pre listing appraisal gives you an independent value before you set the asking price, which helps avoid a price cut a month later. You can also share it with buyers, though their lender will still order its own appraisal.

Question 15

What is an appraisal management company (AMC)?

Accepted Answer

An AMC is a company lenders hire to find an appraiser, place the order, track it and deliver the report. Fannie Mae's Appraiser Independence Requirements name AMCs as one way lenders keep loan production staff away from appraiser selection. Gerry Allard was Chief Appraiser for a national AMC, so we know that side of the order well.

Question 16

How does an AMC appraisal compare with ordering directly?

Accepted Answer

With an AMC, the company picks an appraiser from its panel and keeps part of the fee, and the report goes to the lender. For anything outside a loan, such as an estate, a divorce, a tax appeal or a pre listing value, you can hire an appraiser like us directly and the report comes to you.

Question 17

What are the special requirements for an FHA appraisal?

Accepted Answer

On top of value, the FHA appraiser checks the home against HUD's property requirements in Handbook 4000.1: safe, sound and secure, with working systems. Peeling paint on an older home, a missing handrail or a broken window can become a repair condition that must be fixed before closing.

Question 18

How is a VA appraisal different from a conventional appraisal?

Accepted Answer

VA loans use VA fee appraisers, who determine the reasonable value of the home for the VA loan guaranty (VA Home Loans). Like FHA, VA looks at property condition as well as value, so repair items can come up. The lender handles the order; the buyer does not choose the appraiser.

Question 19

What is a conventional appraisal?

Accepted Answer

It supports a loan that is not FHA, VA or USDA, usually one sold to Fannie Mae or Freddie Mac. Their guidelines set how the appraisal is done. Condition still matters, but there is no separate government property checklist like FHA's. Most Puget Sound purchases and refinances use one.

Question 20

What is a desktop appraisal?

Accepted Answer

The appraiser values the home without visiting it, working from public records, MLS photos, floor plan data and sometimes aerial images. Fannie Mae and Freddie Mac allow it only on certain loans. It is quicker, but for a home with recent remodeling or odd features an inspection catches what records miss.

Question 21

What is a hybrid appraisal?

Accepted Answer

A trained data collector visits the home and gathers measurements and photos, then an appraiser who never went inside completes the valuation from that data. Some lenders accept hybrids on some loans. Whether one is allowed depends on the loan program, not on the homeowner's preference.

Question 22

What information is in an appraisal report?

Accepted Answer

A description of the home and site, a neighborhood and market review, the comparable sales with adjustments, the value conclusion, the scope of work and the appraiser's certification. Fannie Mae and Freddie Mac switch to a redesigned report (UAD 3.6) starting November 2, 2026, per Freddie Mac's UAD timeline.

Question 23

How long does an appraisal take?

Accepted Answer

Our reports typically take 7 to 10 days from the order, depending on scope. A retrospective value or a complex property can take longer. We research every request in the MLS and county records, give you a delivery date with the quote, then deliver on that date.

Question 24

How do I find out what my home is worth right now?

Accepted Answer

Online estimates give a rough range, but they cannot see your remodel, your view or the busy road behind the fence. A licensed appraiser inspects the home and compares it to recent nearby sales. For a loan, a court or the county, only an appraisal will do.

Question 25

What is the difference between market value and other kinds of value?

Accepted Answer

Market value is the most probable price on the open market, and it is what appraisers measure. Assessed value is for property tax, insured value is the cost to rebuild, and book value is an accounting figure. When you are buying, selling or borrowing, market value is the one that counts.

Question 26

What is an appraisal review?

Accepted Answer

An appraisal review is a second appraiser's check of someone else's report for accuracy, support and compliance with standards. A desk review uses only the report and data. A field review adds a look at the property. Lenders, attorneys and courts order them when a value is in question.

Question 27

How does an appraisal rebuttal work?

Accepted Answer

You point out specific problems in the report: a better comparable sale that was missed, a wrong square footage, a feature left out. Send it through the lender with facts attached. The appraiser must consider new information, and a request that simply asks for a higher number goes nowhere.

Question 28

What is a reconsideration of value (ROV)?

Accepted Answer

An ROV is a formal request, made through the lender, for the appraiser to look again using new information such as missed sales or corrected property data. Fannie Mae requires lenders to have a process for borrower initiated ROVs on loans with applications dated on or after October 31, 2024. Our article on winning an ROV, linked below, walks through it.

Question 29

What are comparable sales and how are they used?

Accepted Answer

Comparable sales, or comps, are recent sales of homes like yours, close by. The appraiser adjusts each one for its differences (an extra bath, a smaller lot) to show what your home would have sold for in its place. Three is the usual minimum, and more is common.

Question 30

How do comps affect my appraised value?

Accepted Answer

They set it. If the closest matches in size, age and location sold in a tight range, your value will land near that range after adjustments. When good comps are scarce, the appraiser reaches further in time or distance and has to explain why.

Question 31

What is the sales comparison approach?

Accepted Answer

It values a home by comparing it with recent sales of similar homes and adjusting for the differences. For most houses and condos it carries the most weight, because it reflects what buyers actually paid. It works best when there are recent sales in the same neighborhood.

Question 32

What is the income approach in appraisal?

Accepted Answer

It values property by the rent it can earn, using a gross rent multiplier for small rentals or a capitalization rate for larger ones. On a two to four unit building it matters a great deal. On an owner occupied house it is usually left out.

Question 33

What is the cost approach in appraisal?

Accepted Answer

It adds the land value to what it would cost to build the house new, then subtracts depreciation. It is most useful on new construction and on unusual homes with few sales to compare. On an older home in an active market, the sales comparison approach usually wins.

Question 34

What are appraisal adjustments?

Accepted Answer

Adjustments are the dollar amounts added to or subtracted from a comparable sale to account for how it differs from the home being appraised: a bigger garage, a better view, worse condition. Each one should come from what local buyers actually pay for that feature.

Question 35

How is gross living area (GLA) measured?

Accepted Answer

GLA is finished, heated space above grade, measured from the outside walls. Finished basements, garages and unheated sunrooms are counted separately even when they add value. That is why a listing's square footage and the appraisal's often do not match.

Question 36

Why does square footage matter so much?

Accepted Answer

Living area drives the size adjustments on every comparable, so an error moves the whole value. Public records and listings are often wrong after additions or remodels. We measure the house ourselves and report what we measured.

Question 37

What makes a luxury home appraisal harder?

Accepted Answer

Fewer sales to compare, wider price gaps between them and features that are hard to price, like a custom wine room or a home theater. The appraiser often looks farther afield or further back for comps and has to explain each choice. Waterfront and view homes on the Eastside are good examples.

Question 38

How does a waterfront appraisal work?

Accepted Answer

The appraiser identifies the kind of water (Puget Sound, a lake or a river), the length of frontage, the bank height, beach access, any dock and the view. Comparable sales need to be other waterfront homes, ideally on the same body of water, because buyers pay very differently for each.

Question 39

What is a multifamily appraisal?

Accepted Answer

For a duplex, triplex or fourplex, the appraiser uses both the sales comparison and income approaches, with a rent schedule for each unit. Buildings of five or more units are commercial property and lean almost entirely on income. Expect more paperwork than for a single family home.

Question 40

What is different about a condo appraisal?

Accepted Answer

The appraiser values the unit and also looks at the building: the HOA budget, reserves, special assessments, pending litigation and how many units are rentals. Sales inside the same building or complex come first. Our team is very experienced with condos, townhomes and every type of attached dwelling.

Question 41

How are manufactured homes appraised?

Accepted Answer

The appraiser confirms the home sits on a permanent foundation and is titled as real property, then checks the HUD data plate and tags. Lenders have their own eligibility rules for manufactured homes. Comparable sales of other manufactured homes are needed, which can mean looking farther out.

Question 42

What makes a rural appraisal harder?

Accepted Answer

Sales are sparse, so the appraiser often reaches many months back or many miles out. Acreage, wells, septic systems, barns and shops each need their own analysis. In the rural parts of Pierce, Thurston and Kitsap Counties that research takes extra time.

Question 43

What does an investment property appraisal involve?

Accepted Answer

For a one to four unit rental, the appraiser adds a market rent survey and compares the property with similar rentals, alongside the usual sales comparison. Current leases are noted, but the report is based on market rent, which may be higher or lower than what the tenant pays.

Question 44

What should I know before a cash out refinance appraisal?

Accepted Answer

The value sets how much you can borrow, and lenders cap cash out at a share of that value. Finish small repairs, have a dated list of upgrades ready and make every room accessible. A home that is mid remodel will be valued as it stands that day.

Question 45

When is a HELOC appraisal required?

Accepted Answer

That is up to the lender. Some accept an automated estimate or an exterior only appraisal for a small line of credit. Others want a full interior appraisal. Your first mortgage plus the line has to fit under the lender's combined loan to value limit, so the value sets the size of the line.

Question 46

Why would I need a private appraisal?

Accepted Answer

A private appraisal is one you order yourself, outside a loan: for an estate, a divorce, a tax appeal, a pricing decision or a family sale. The report belongs to you and answers your question. It cannot be reused by a lender for a mortgage.

Question 47

What is the advantage of hiring an independent appraiser?

Accepted Answer

When you hire us directly for a non loan assignment, you set the scope, the effective date and the deadline, and you talk to the appraiser instead of a call center. The value is still independent. We work for you, not for an outcome.

Question 48

How do I get an accurate home valuation?

Accepted Answer

Hire a licensed appraiser who inspects the home and compares it with recent local sales. Online tools miss upgrades, lot problems and the difference between one side of a busy street and the other. For money, legal or tax decisions, the appraisal is the reliable number.

Question 49

Why does it matter that my appraiser is local?

Accepted Answer

A local appraiser knows which streets sell for more, where school district lines fall and when a view or a ferry commute moves price. This team has done appraisals and market analyses for Puget Sound brokers, builders, agents and lenders since the early 1990s, and that history shows in comp selection.

Question 50

What is a market analysis in an appraisal?

Accepted Answer

The appraiser studies supply, days on market, sale to list price ratios and price trends in the neighborhood to decide whether the market is rising, flat or falling. That decides whether older sales need a time adjustment and which comps reflect today's buyers.

Question 51

What is a home equity appraisal?

Accepted Answer

It measures current value so you can see how much equity you have, usually for a home equity loan, a line of credit or a refinance. Some owners order one privately to plan a sale or a remodel. The equity is simply that value minus what you owe.

Question 52

What is a bank appraisal?

Accepted Answer

It is any appraisal a lender orders to support a loan: a purchase, refinance, line of credit or construction loan. The bank relies on it to confirm the home is enough collateral. It follows the lender's and investor's rules and belongs to the lender, even though you pay for it.

Question 53

What lender appraisal requirements should I know about?

Accepted Answer

Rules change by loan type. FHA follows HUD Handbook 4000.1, conventional loans follow Fannie Mae or Freddie Mac, and VA has its own guidance. Each sets the report form, the comparable sales standards and the property condition rules. Your loan officer can tell you which applies.

Question 54

What is an appraisal contingency in a purchase contract?

Accepted Answer

It lets the buyer renegotiate or cancel if the home appraises below the price. In a hot market some buyers waive it to win the house. If you do, have the cash to cover a gap between the price and the appraised value, because the loan follows the appraisal.

Question 55

What happens when an appraisal comes in low?

Accepted Answer

The lender lends on the appraised value, so the buyer has a gap. The usual options are a lower price, more cash from the buyer, a split, or a reconsideration of value with better comparable sales. A low number is not always wrong, and sometimes it is.

Question 56

Can an appraisal come in too high?

Accepted Answer

Yes, and lenders watch for it. A value above what the market supports puts the lender at risk and can trigger a review. USPAP requires the appraiser to be independent, so the value has to come from the sales evidence even when everyone at the table wants it higher.

Question 57

What is appraisal bias and how is it addressed?

Accepted Answer

Appraisal bias is a value pushed up or down because of the race, ethnicity or other protected traits of the owner or the neighborhood. Federal fair lending law prohibits it, and lenders now give borrowers a way to request a reconsideration of value. Our values come from the sales evidence and the property, nothing else.

Question 58

What does fair housing compliance mean for an appraiser?

Accepted Answer

The Fair Housing Act bars discrimination based on race or color, religion, sex, national origin, familial status or disability (U.S. Department of Justice). An appraiser cannot let any of those shape the value, the comparable sales chosen or the words used to describe a neighborhood.

Question 59

What does a USPAP compliant appraisal mean?

Accepted Answer

USPAP, the Uniform Standards of Professional Appraisal Practice, is the national standard for real estate appraisal (The Appraisal Foundation). A compliant report follows its rules on competence, independence, scope of work and reporting. Lender appraisals must meet it, and we follow it on every assignment.

Question 60

What happens during the appraisal visit?

Accepted Answer

The appraiser measures the house, photographs each room and the outside, and notes condition, finishes, upgrades and anything that affects value. Most visits are short. The bigger part of the work happens afterward at a desk, researching sales and writing the report.

Question 61

How does condition affect appraised value?

Accepted Answer

Directly. Each home gets a condition rating, and the comparable sales are adjusted for differences in condition. Deferred maintenance, worn finishes or failing systems pull value down and can trigger lender repair conditions. Fresh paint and small repairs help the home show the condition it really has.

Question 62

How do market trends affect the appraisal?

Accepted Answer

If prices have been rising, an older comparable sale may need an upward time adjustment; if falling, a downward one. The appraiser also picks newer sales when the market is moving fast. Different parts of Puget Sound and different home types can move in different directions at the same time.

Question 63

How does the housing market affect my appraisal?

Accepted Answer

The appraisal can only reflect what similar homes have recently sold for. In a market with few listings and many buyers, those sales push values up. When homes sit longer and prices get cut, the comps show it. The appraiser has to read the most current evidence.

Question 64

Can an appraisal help with a property tax appeal?

Accepted Answer

Yes. If the county's assessed value is higher than market value, an independent appraisal is strong evidence for the Board of Equalization. File on time and match the appraisal's effective date to the assessment date. Our tax appeal guide, linked below, covers King, Pierce and Snohomish Counties.

Frequently
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Related guides

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What will my appraisal cost?

Request an appraisal

Frequentlyasked questions

Related guides

Sources

What will my appraisal cost?

Request an appraisal

Frequently
asked questions