{"id":5671,"date":"2018-09-28T13:15:23","date_gmt":"2018-09-28T20:15:23","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=5671"},"modified":"2026-04-07T00:09:02","modified_gmt":"2026-04-07T07:09:02","slug":"home-appraiser","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/home-appraiser\/","title":{"rendered":"10 Questions to Weed Out Bush-League Home Appraiser Candidates Before You Hire One"},"content":{"rendered":"

Any homeowner who\u2019s had a professional install the wrong bathroom countertop or leave a job unfinished knows that contractors can be a mixed bag. Home appraisers are no exception.<\/p>\n

Take the appraiser who values your home with nothing but a drive-by inspection from the curb and fails to notice your brand-new kitchen or your home\u2019s impeccable condition.<\/p>\n

Compare that against the appraiser who gathers all the available data on a property, visually inspects every detail inside and out, snaps lots of photos, and factors their findings into a detailed comps analysis. Which one would you want valuing your home?<\/p>\n

As a homeowner, you need to find a professional in the latter camp\u2014someone with the right qualifications and field experience in your market who you can trust to do a thorough job, whether you\u2019re refuting a low appraisal or refinancing your mortgage.<\/p>\n

\u201cJust like with an agent or broker, you should be looking at someone that only does work in your area,\u201d said Tommy Mack<\/a>, a real estate agent in Key West, Fla., for six years.<\/p>\n

His go-to question for evaluating a home appraiser is: \u201cHow many appraisals have you done in this neighborhood this year?\u201d<\/p>\n

\u201cThat would tell me all the info I need,\u201d Mack said.<\/p>\n

In Key West, the beach community means a wide range of housing values, with $500,000 homes existing on the same block as $5 million ones, he explained.<\/p>\n

\u201cWe\u2019ve had a lot of issues with out-of-towners with a lack of understanding of the local market.\u201d<\/p><\/blockquote>\n

To find a home appraiser, ask your trusted real estate broker or agent to recommend one\u2014or search the online directories of the Appraisal Institute or the\u00a0National Association of Real Estate Appraisals<\/a> (NAREA).<\/p>\n

Then ask Mack\u2019s go-to question\u2014as well as your own from our research below, based on these professional organizations and others.<\/p>\n

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Source: (Pexels\/ Pixabay)<\/figcaption><\/figure>\n

What happens during the home appraisal? Let\u2019s start with an overview<\/h2>\n

Before you use a home appraiser, it\u2019s wise to understand the appraisal process.<\/p>\n

An appraiser typically works for a mortgage lender, not a buyer or seller, and does thorough research and analysis to develop a credible opinion of a property\u2019s market value, according to the\u00a0Appraisal Institute<\/a> (AI), a global professional association of real estate appraisers, with more than 18,000 professionals worldwide.<\/p>\n

As of Dec. 31, 2017, there were\u00a082,208 active real estate appraisers in the United States<\/a>, a decrease of 1% from the previous year.<\/p>\n

An appraiser\u2019s opinion stems from three \u201ccommon approaches to value,\u201d according to\u00a0Alpha One Real Estate Services<\/a>, LLC, in Hollywood, Fla., a certified real estate appraiser and member of the NAREA.<\/p>\n

The Cost Approach looks at how much it costs to replace a property\u2019s improvements, minus other factors such as physical deterioration, plus the land value.<\/p>\n

The Sales Comparison Approach, which is considered the most accurate and clearest indicator of value, looks at the value of similar homes nearby.<\/p>\n

Finally, the Income Approach looks at income-producing properties and determines what an investor would pay based on the amount of expected capital.<\/p>\n

An appraisal is\u00a0not intended to confirm a home\u2019s sale price<\/a>, the AI says. Home appraisals reflect what\u2019s happening in the real estate market.<\/p>\n

An appraisal also should consider a property\u2019s \u201chighest and best use,\u201d according to the\u00a0American Bar Association<\/a>. The ABA says this is fairly straightforward; Appraisal Institute guidelines define this use on four factors: being legally permissible, physically possible, financially feasible, and maximally productive.<\/p>\n

Problems with appraisals arise when an area has no clear market patterns or a market is in transition, such as when single-family homes are located on busy streets where other houses are being converted to commercial use, the ABA says.<\/p>\n

It\u2019s also key to make sure that the properties used for comparison meet the same standard for \u201chighest and best use,\u201d the ABA says. For instance, it\u2019s typically not proper to compare a single-family ranch-style residence with two-story colonial-style houses or multi-tenant buildings, the ABA says.<\/p>\n

A real estate appraiser undergoes an extensive amount of specialized education and training.<\/p>\n

Although the industry is regulated differently from state to state, each state requires appraisers to take at least 75 hours of coursework outlined by the\u00a0Appraiser Qualifications Board<\/a> to become appraisal trainees. Licensed trainees then work under the supervision and mentorship of a licensed property appraiser for at least six months.<\/p>\n

Fully licensed appraisers must then take a residential real property appraiser exam in their state and apply to the real estate appraisers board for a license. Becoming a certified residential appraiser<\/a> who can appraise more complex properties or those valued at higher than $1 million involves additional coursework and training.<\/p>\n

An appraiser can earn a salary through a commercial appraisal firm, but most commonly, an appraiser earns a fee through each appraisal. The fee is based on square footage, Mack said, and is part of the closing costs in a real estate transaction. The average fee he\u2019s seen is about $500.<\/p>\n

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Source: (Free-Photos\/ Pixabay)<\/figcaption><\/figure>\n

Questions to ask your home appraiser before you hire them<\/h2>\n

Now that you know more about the appraisal process, here are 10 questions to evaluate the home appraiser for your needs.<\/p>\n

1. Does your lender use an appraisal management company?<\/h3>\n

Federal regulations and policies require a buffer between appraisers and lenders, so some lenders use appraisal management companies instead of appraisers working with real estate agents or brokers.<\/p>\n

However, an appraisal management company\u2019s business model might be based on keeping as much of the appraisal fee and paying as little to the home appraiser as possible\u2014which can lead to them\u00a0sending out someone less qualified or competent<\/a> to perform the appraisal.<\/p>\n

2. Are you licensed or certified<\/b> in your state?<\/b><\/h3>\n

A licensed residential appraiser can appraise only complex residential properties with one through four units worth less than $250,000 or non-complex residential properties with one through four units worth less than $1 million.<\/p>\n

If your property is more complex or valued at more than $1 million, you\u2019ll likely need a certified residential appraiser.<\/p>\n

3. What are your professional designations?<\/h3>\n

Appraisers who meet more than the state\u2019s minimum requirements receive certain designations for their education and work experience.<\/p>\n

A member of the Appraisal Institute can earn the following designations:<\/p>\n