Whether you're a homeowner preparing for a refinance or a Realtor working with a client, real estate appraisals can seem like a mystery. Below are the 10 most common questions appraisers get asked—along with honest, straightforward answers to help you navigate the process with confidence.
No. The appraisal report is confidential and intended solely for the client—typically the lender or the person who ordered the report. It is not shared with the county tax office or any outside parties unless the client provides explicit permission.
Not directly. While we analyze price per square foot for both the subject property and comparable sales, it’s not the driving factor in valuation. Price per square foot includes much more than just the home’s size—it reflects lot value, pools, accessory units, basements, and other features.
In neighborhoods with diverse property types—like lakefront homes or homes on large acreage—price per square foot can be highly misleading. It’s only more relevant in cookie-cutter subdivisions where homes are nearly identical.
The key factors include:
Square footage
Quality of construction
Condition of the home
Site/lot value
And of course, location
Upgrades and updates can significantly boost value—as long as you don’t over-improve beyond what’s typical for the neighborhood.
Appraisers follow the principle of substitution—we ask: What would a buyer choose instead if this home weren’t available?
We review recent sales in the same or similar neighborhoods and make adjustments for differences. Ideal comps are those needing the fewest adjustments. We also “bracket” the subject’s features by choosing both superior and inferior properties in terms of price, size, condition, etc.
Yes—most of the time. However, how much value depends on the market. We compare similar homes with and without pools to determine what buyers are willing to pay for that feature.
A pool in disrepair may detract from value as it must be repaired. One that far exceeds others in the neighborhood may not get the value expected. Keep in mind, cost does not always equal value—a $100K pool doesn’t automatically increase the appraisal by $100K.
Absolutely not! An appraisal determines market value, while a home inspection evaluates the physical condition of the property’s systems (plumbing, electrical, HVAC, roof, etc.).
Appraisers assume systems are operational unless there's visible evidence to the contrary. For peace of mind, always get a home inspection in addition to an appraisal.
No. The methodology is the same regardless of purpose—whether it’s for a refinance, sale, divorce, or estate planning.
The only exception might be if we're specifically asked to determine a quick-sale or liquidation value, which is often lower due to shorter marketing time.
Yes, but with a caveat. Basement space—if any part of it is below grade (which is common)—is not included in the main Gross Living Area (GLA). Instead, it’s valued separately, usually at a lower rate, based on what the market typically pays for finished basements in your area.
Yes—with some guidelines. We welcome input, but please don’t follow the appraiser throughout the home. It can be distracting and may cause us to miss important details.
Instead:
Be available to answer questions after the walkthrough
Provide a “brag sheet” with upgrades, remodel dates, and costs
Realtors can share comparables—but remember, not all will be used unless they align with true market data
Not necessarily. Appraisers don’t "rubber-stamp" the contract price. The value must be supported by market data, not emotion or competition.
For example, during the post-pandemic housing frenzy, many buyers paid over market value due to bidding wars. On the flip side, some homes are underpriced intentionally.
The Appraiser’s job is to provide an independent, well-supported market value—even if it differs from the agreed-upon price.
Appraisers play a critical role in the real estate process, providing an unbiased, data-driven opinion of value. Understanding our approach—and why we do what we do helps make the process smoother and more transparent for everyone involved. Please contact us if you have more questions and for all your Appraisal needs. We are always here to help you.