FAQ

An appraisal determines market value for lending or sale decisions, while an inspection evaluates property condition and identifies repairs. Appraisers analyze comparable sales and market trends; inspectors examine structural systems and safety issues. Lenders require appraisals to confirm loan amounts align with property value.

Most lenders accept appraisals for 90 to 120 days from the effective date. Market conditions change constantly, affecting property values and comparable sales data. If your transaction extends beyond this window, the lender typically requires an updated appraisal or recertification of value.

Appraisers evaluate location, size, condition, age, and recent sales of comparable properties within the same market area. Additional factors include lot characteristics, upgrades, functional layout, and current market trends. Each element is weighted based on how buyers in that specific market prioritize features.

No, lenders require a new appraisal for refinancing because market conditions and property values change over time. Your home's condition may have improved or declined since purchase, and comparable sales data updates constantly. Each loan transaction needs current market value confirmation.

Property size, complexity, location, and appraisal type affect pricing. Larger homes require more measurement and analysis time, while rural properties need broader comparable searches. Specialized appraisals for unique properties or litigation purposes involve additional research and reporting beyond standard residential evaluations.

The buyer can renegotiate the price, increase their down payment to cover the gap, or cancel the contract if contingencies allow. Lenders base loan amounts on appraised value, not contract price. Sellers may provide documentation of recent upgrades or request a reconsideration of value if data appears incorrect.

Full appraisals require interior access to measure square footage, evaluate condition, assess layout functionality, and document features affecting value. Exterior-only appraisals exist for refinancing in some cases but provide limited accuracy. Interior inspection ensures the appraiser captures upgrades, condition issues, and functional obsolescence.

Appraisers choose recently sold properties within the same neighborhood or market area that match the subject property in size, age, condition, and features. Sales must be arm's-length transactions, typically within the past six months. Adjustments are made for differences between the subject property and each comparable.

Purchase appraisals establish current market value for financing decisions and are lender-focused. Estate appraisals determine fair market value for tax purposes, inheritance distribution, or legal settlements and follow different reporting standards. Estate appraisals often require retrospective valuation as of a specific date, such as date of death.

Homeowners can request a reconsideration of value by providing documentation of recent comparable sales, upgrades not noted, or factual errors in the report. The appraiser reviews additional information and determines if adjustments are warranted. Lenders have formal dispute processes, but appraisers change values only when data supports revision.