Appraisals – 60 Frequently Asked Questions – NEW!

🏠 Real Estate Appraisal FAQs (1–60)

General Appraisal Questions

1. What is a real estate appraisal?

A real estate appraisal is a professional, unbiased estimate of a property’s market value, used for buying, selling, refinancing, divorce, or tax purposes.

2. Who performs a home appraisal?

A licensed or certified real estate appraiser conducts the appraisal using market data, inspections, and standard valuation approaches.

3. Why do I need a home appraisal?

You need a home appraisal to confirm the property's fair market value for mortgage approval, refinancing, or legal purposes such as divorce or estate planning.

4. How is a home’s value determined in an appraisal?

Appraisers determine value using recent comparable sales (comps), property condition, location, lot size, square footage, and market trends.

5. Is an appraisal the same as a home inspection?

No. An appraisal estimates value; an inspection checks for physical issues or defects in the property.

Appraisal Process Questions

6. What happens during a home appraisal?

The appraiser inspects the interior and exterior, takes photos and measurements, and analyzes comparable sales before delivering a written report.

7. How long does a home appraisal take?

The inspection takes 30–90 minutes, and the full appraisal report is typically completed within 3–7 business days, depending on complexity.

8. Can I attend the home appraisal?

Yes, homeowners or real estate agents can attend, but they may not influence the appraiser’s value opinion.

9. What documents should I prepare for a home appraisal?

Provide your property tax bill, list of renovations, permits, survey (if available), and recent comparable sales in your area.

10. Do appraisers take photos during the appraisal?

Yes. Appraisers take both interior and exterior photos as part of the documentation required by lenders and appraisal standards.

Types of Appraisals

11. What are the different types of appraisals?

Common types include full (interior/exterior), exterior-only (drive-by), desktop (no visit), and hybrid (with third-party inspection).

12. What is a desktop appraisal?

It’s conducted without a site visit, using online data and records, and is typically used for low-risk lending scenarios.

13. What is a drive-by appraisal?

The appraiser only views the exterior and uses market data to estimate value—often used for refinances or equity loans.

14. What’s the difference between residential and commercial appraisals?

Residential appraisals focus on homes (1–4 units), while commercial appraisals are for income-producing properties and are more complex.

15. What is a retrospective appraisal?

It estimates a property's value as of a specific date in the past—often used for estate, tax, or legal purposes.

Valuation Methods

16. What valuation approaches do appraisers use?

The three methods are: Sales Comparison Approach, Cost Approach, and Income Approach.

17. How do comps affect the value?

Comparable properties (comps) are the primary basis for estimating value. The appraiser adjusts based on size, location, upgrades, and sale date.

18. Can renovations increase my appraisal value?

Yes. Kitchens, bathrooms, flooring, roofs, and major system upgrades typically improve value.

19. Do appraisers consider landscaping or curb appeal?

Yes, aesthetics can influence value slightly, particularly if they are significantly above or below neighborhood norms.

20. Do appraisers consider personal property?

No. Only real property (land and permanent structures) is included—furniture or appliances generally aren’t unless they’re built-in.

Cost and Payment

21. How much does a home appraisal cost?

Residential appraisals typically range from $750.00 and upwards, depending on location, size, and complexity.

22. Who pays for the appraisal?

The buyer usually pays during purchase transactions. For refinancing, the homeowner typically pays.

23. Is the appraisal fee refundable?

Usually not. Once the appraiser completes the inspection, the fee is considered earned.

24. Does appraisal cost vary by province?

Yes. Fees vary due to market demand, cost of living, and property type.

25. Do larger homes cost more to appraise?

Generally, yes. Larger or custom homes require more time and analysis.

Appraisal Results and Reports

26. What if the appraisal comes in low?

Options include renegotiating the price, increasing your down payment, requesting a second opinion, or disputing the report.

27. Can I appeal a low appraisal?

Yes. In some cases, you can submit a Reconsideration of Value (ROV) with additional comparables or documentation to the lender.

28. Can I get a copy of the appraisal?

Yes—depending on the terms of the engagement. If you hired the appraiser directly, the report goes to you.

29. How long is an appraisal valid?

Typically 90–120 days. A new or updated appraisal may be required if market conditions change.

30. Can an appraisal be reused for another lender?

Not usually. Each lender typically orders their own appraisal to ensure compliance.

Market and External Factors

31. Do appraisers consider current market trends?

Yes. Market conditions such as rising or falling prices directly influence valuation.

32. How does location impact value?

Significantly. School districts, amenities, crime rates, and neighborhood upkeep are major factors.

33. Can a bad neighbor affect my appraisal?

Indirectly. Poorly maintained neighboring properties can reduce marketability and potentially value.

34. What if there are no good comps nearby?

The appraiser may expand the search radius, use older sales, or adjust more carefully to find relevant data.

35. Do foreclosures or short sales nearby hurt my appraisal?

Possibly. If they are recent or common in the area, they may impact value, though adjustments are made.

Loan and Transaction Questions

36. Do I need an appraisal for a refinance?

Yes, most lenders require one, though some may waive it for low-risk scenarios.

37. Can I choose my appraiser?

Not for mortgage-related appraisals. Lenders use third-party AMCs. However, you can select an appraiser for private valuations.

38. How does an appraisal affect my loan?

It impacts the loan-to-value (LTV) ratio. If the value comes in low, loan terms may change.

39. What if my home appraises for more than the sale price?

That’s favorable—it means you may have built-in equity or are paying less than market value.

40. What if I disagree with the appraisal?

You can dispute it through the lender with supporting evidence, such as better comps or factual corrections.

Special Circumstances

41. Can I get an appraisal before listing my home?

Yes. A pre-listing appraisal helps set a realistic asking price and aids negotiations.

42. Are appraisals required for cash buyers?

No, but buyers can order one for independent verification of value.

43. Can appraisals be done remotely?

Desktop and hybrid appraisals may be done remotely if the lender accepts them.

44. What is an as-is vs. subject-to appraisal?

"As-is" reflects current value. "Subject-to" appraises value assuming proposed repairs or renovations are completed.

45. Can you appraise raw land?

Yes, but it requires different valuation techniques, and fewer comps may be available.

Legal and Regulatory

46. Are appraisers regulated?

Yes. In Canada, they are licensed by provincial boards and must follow CUSPAP standards.

47. Can an appraisal be used in court?

Yes. Appraisals are often used in legal proceedings like divorce, estate settlement, and litigation.

48. Is it legal to influence an appraiser?

No. Undue influence or coercion violates ethical standards and legal guidelines.

49. What happens if fraud is suspected in an appraisal?

It should be reported to the regulatory body or lender. Fraud is a serious offense.

50. What credentials should an appraiser have?

Look for professional designations such as CRA, P.App. (residential) or AACI, P.App. (commercial), plus provincial licensure.

Divorce and Separation-Specific Questions

51. Do I need an appraisal for divorce proceedings?

Yes. Courts and lawyers often require a professional, unbiased value to determine asset division.

52. Can each spouse get a separate appraisal?

Yes. Each party may hire their own appraiser, or both can agree on one neutral appraiser.

53. Is a divorce appraisal different from a regular one?

Methodologically, no—but it must comply with legal standards and may include court-ready documentation.

54. Will the appraisal determine who gets the house?

No. The appraisal only provides value. Who retains the home is decided through negotiation or court ruling.

55. Can an appraisal help determine buyout terms?

Absolutely. The appraised value can guide how much one spouse would need to pay the other to retain ownership.

56. How should we handle disagreements on appraisal value?

Parties may seek a second opinion or have a third-party review both reports and issue a reconciled value.

57. Can appraisals be used for mediation or arbitration?

Yes. Appraisals are commonly used to facilitate equitable decisions during alternative dispute resolution.

58. Will the appraiser testify in court?

If necessary and agreed upon, yes. The appraiser may act as an expert witness, though additional fees may apply.

59. What if one spouse won’t cooperate with the appraisal?

The appraiser can proceed with an exterior-only or drive-by appraisal, but interior access is ideal for accuracy.

60. Is the appraisal confidential in a divorce?

Generally, it is shared with both parties and their legal representatives, but not beyond unless ordered by the court.