KO Appraisal
Guide

What does an appraiser do?

An appraiser develops and reports an opinion of value. In practice that means a short visit to the property followed by considerably longer spent on research, analysis, and writing. Understanding what they are recording, and what they are not, removes most of the anxiety around the visit.

What they record at the property

The inspection exists to establish the characteristics that drive value and to confirm that public records match reality. Records are frequently wrong about square footage, room count, and additions.

  • Size and layout. Gross living area measured to a consistent standard, room count, and whether the layout is functional. Below-grade space is treated separately from above-grade, which is why a finished basement rarely adds what owners expect.
  • Quality of construction and condition. Materials, workmanship, age, and the state of major components, roof, systems, windows, finishes.
  • Updates and their vintage. A kitchen renovated two years ago contributes differently from one renovated twenty years ago, even if both are described as "updated".
  • Site characteristics. Lot size and usability, topography, access, and anything external that affects desirability. A view, or backing onto a commercial use or a busy road.
  • Permitted status. Unpermitted additions are a recurring problem. Space that cannot be shown as legally permitted may not be creditable as living area, which can move value materially.
  • Anything that would affect safety, soundness, or marketability. Significant in lender assignments, where certain conditions require repair before the loan can close.

What they are not doing

Considerable worry is spent on things that have no effect on the outcome.

  • Not judging housekeeping. Clutter and dishes in the sink do not affect value. Deferred maintenance does. The distinction is between untidy and damaged.
  • Not conducting a home inspection. No testing of systems, no roof walk, no crawl space. Condition is observed, not diagnosed.
  • Not appraising your furniture. Personal property is not real property and is excluded, aside from fixtures.
  • Not taking a view on the occupants. Federal fair housing law prohibits considering the race, colour, religion, sex, familial status, national origin, or disability of anyone connected to the property, and prohibits basing value on the composition of a neighbourhood.

The work after the visit

This is where the value opinion is actually formed. The appraiser researches recent comparable transactions, verifies the details of each, sale price, terms, condition, whether it was an arm’s-length sale, and adjusts for differences between each comparable and the subject.

Verification is the step that separates appraisal from browsing sold listings. A sale that closed below market because it was between relatives, or above it because it included a large concession, will mislead anyone who takes the recorded price at face value. Where the property produces income, the analysis extends to reconstructing its operating statement and extracting capitalisation rates from comparable sales.

What you can usefully do

Little of the outcome is under your control, but a few things genuinely help:

  • Provide a list of improvements with dates and, where you have them, costs. The appraiser cannot see that the sewer line was replaced or the panel upgraded.
  • Have permits available for any addition or conversion. This is the single most common source of a valuation problem that could have been avoided.
  • Ensure access to everything: locked rooms, garages, outbuildings, and attic or crawl space hatches.
  • Mention comparable sales you know of, particularly private sales that may not appear in the usual sources. The appraiser will verify them independently, and may or may not find them comparable.
  • What does not help: following the appraiser around, or suggesting the value you need. The latter is an attempt to influence the outcome, which they are required to disregard.

Common questions

What does an appraiser look for in a house?
Size, layout, quality of construction, condition, the age and extent of updates, site characteristics, and any external influences on desirability. They also verify that public records match the property as it actually exists. Square footage and room counts are frequently wrong.
Does a messy house lower an appraisal?
No. Clutter is not a value factor and appraisers see homes in every state. What does affect value is deferred maintenance and damage. A stained ceiling indicates a leak, and that is a condition issue rather than a tidiness one.
What does an FHA or VA appraiser look for that others do not?
Both programmes layer minimum property requirements on top of the valuation. Condition standards addressing safety, soundness, and habitability, such as functioning utilities, safe access, and the absence of certain hazards. The valuation methodology is the same; the additional condition requirements can require repairs before closing.
Should I be present during the appraisal?
Someone needs to provide access, and it is helpful to be available for questions about improvements. Beyond that, giving the appraiser room to work is more useful than accompanying them. Providing a written list of improvements at the start covers most of what you would want to say.
Can an appraiser refuse to complete an assignment?
Yes, and sometimes must. If access is denied, if the property differs materially from what the assignment described, or if the appraiser lacks competency for the property type or market and cannot acquire it, proceeding would breach the standards. They may also withdraw if a client attempts to influence the outcome.
Who wrote this Kevin O'Brien, MAI, SRA. California Certified General Real Estate Appraiser #3005065, issued by the California Bureau of Real Estate Appraisers (BREA). Practicing in San Diego. This page reflects how these assignments are actually handled, not a summary of other people's summaries.
Where this applies Appraiser licensing is state-specific, there is no national appraisal licence, so appraisal engagements here are California properties, primarily San Diego County. The valuation methodology and the federal tax rules described above apply anywhere in the United States; if your property is in another state, you need an appraiser credentialed there, and this page should still tell you what to ask them for.

Related reading

Next step

Tell me about the property.

Most assignments start with a short call, property type, the purpose of the appraisal, and the deadline you are working against. You get a fixed quote before any engagement, never contingent on the value reached.

Typical commercial fees range $2,000–$4,000. Residential and simpler assignments quote lower. Every engagement is quoted in advance, so the figure is known before work begins.

Call 760-685-8036residential Request a quote