What Does a Home Appraiser Look For?

By Jeff Cheney | On

Many people do not realize this, but a home appraisal is required on any property when it is financed. If you are considering buying a home in the near future, this is something to keep in mind. While you may assume that an appraisal will simply, well, appraise the value of a home, there is a lot more to it than that. In order to walk into buying a home with your eyes wide open, it is important that you understand what, exactly, a real estate appraisal entails. Before we dive into the details of this, let’s make one distinction – a real estate appraisal inspection is NOT the same thing as a home inspection. Unfortunately, people often confuse these two things. While both are important to the home buying process, they are quite different than one another. A home inspection is far more in-depth and is done with the intention of finding things that are wrong or cause for concern with a home. On the other hand, a home appraisal is done to determine the value of a home. While an appraisal will certainly take certain defects into consideration, it is not nearly as thorough as an actual home inspection.

What Does an Appraisal Involve?

Before we get into what some of the top considerations in a given home appraisal are, let’s go over the definition of a real estate appraisal. As mentioned above, a home real estate appraisal aims to develop an opinion of the value of a property, which is commonly referred to as a home’s market value. It is important to keep in mind that appraisal rules can vary by state, however, there are three key components that are pretty standard:

  • Inspection – During the appraisal a licensed appraiser will inspect the property and determine its fair market value
  • Comparables – Once the inspection has been completed, the appraiser will research other homes in your area and compare recent transactions in order to more accurately determine market value
  • Final Report – After all the data has been collected from the inspection as well as the comparables research, the appraiser will create a final appraisal report that will explain the determined market value and how he got this number

Top Considerations During a Home Appraisal

Now that you have a better understanding of what a home appraisal is, let’s go over some of the top considerations that an appraiser will look for when determining the market value of your home:

  • Is the property in a livable condition?
  • What is the square footage of the actual home and the land it is on?
  • Is there any obvious damage to the interior of the home that may affect its value?
  • What permanent features does the home have that may impact the value?
    • Such as built-in appliances, patios, or decks
  • If the home has a basement, what types of updates have been done?
  • How many bedrooms does the home have? Keep in mind that all bedrooms must have closets and windows

Many people make the mistake of thinking that spending $10,000 on updated bathrooms will increase the home’s value by $10,000. However, what you spend on updates may or may not raise the value of your home by that exact amount. To learn more about the home appraisal process in Frisco, please contact The Cheney Group today. Our experienced Frisco Realtors are here to answer any questions you may have about buying or selling a home in the area.



  1. Thanks for elaborating a bit on what appraisers generally look for. For people just getting into the homeowning scene, learning about these processes can be overwhelming, but having things laid out like this can help make the adjustment a little easier.

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