Appraisal Process 


Why do you need an appraisal? How does the appraisal process work?

In most cases, lenders will need a professional, independent appraisal of the property you would like to purchase or refinance. This is to ensure the value of the home is adequate for the requested amount being borrowed against the property. Different loan programs require certain amounts of equity in the property. The lender may require an appraisal but this is for your benefit as well as the lenders. During the loan transaction the value of the home plays a large role in the loan program and interest rate being offered. An appraisal is an independent view of the value of the home, and is not set by the lender or the borrower.

The process:

  • A professional appraiser will schedule an appointment with you to visit your home. This will be an inspection of its interior and exterior condition. Upon completing the inspection of the home they will then start the universal residential appraisal report.
  • Market research will then begin, searching homes close in proximity that have sold with in the past six months. These homes are then put through the process of comparing similarities such as Home type, Square footage, Bedrooms, Bathrooms, and construction material.
  • Geographical location is very important during this process. Home comparables are not to be more than a maximum of one mile from the recently inspected property. In many cases the comparables have to be with in a half a mile of the recently inspected property.
  • The appraiser then has to limit the search to three properties to base the value upon. These properties have to be the most similar in Home type, Age, Construction, and square footage. The appraiser will then compare the amenities of each property and give the proper adjustments to the individual homes.

The report:

The appraiser will then form an independent opinion of the probable market value of the property. This value is reflected with in the universal residential appraisal report. Inside this report you will have pictures of the subject property, maps with the location of the comparable properties and photos. Market analysis of the homes, along with a cost approach of how they came up with these numbers. They will also include a copy of their license, so the lender can check with the appropriate state boards to make sure they are in good standing.This report is then given to the lender for review and at that time the lender can request any additional information regarding the home.


You can expect to pay $300.00 to $550.00 for a residential appraisal. The cost of the appraisal is based on the type of property and number of units with in the said property. This will be paid directly to the appraiser at the time of service or through the settlement of the loan.

Home Value Estimate

The value of the home will be estimated from the information imput in the below fields. Please enter the details of the home and if you have additional information or comments, please enter them in the about the home field. This will allow us to give you the best estimate of value. This is an 'estimate only' and is not to be considered a final value of the home. If you would like a Certified Market Analysis (CMA) from a realestate agent or to be contacted by an appraiser please fill in the proper field.