What Happens During a Home Appraisal?

The Appraisal Process, Step by Step

Whether you are buying a home, refinancing, or getting an appraisal for another reason, the process follows a predictable sequence. Understanding each step helps you know what to expect, how long it takes, and what the appraiser is actually doing behind the scenes. Here is the full process from start to finish.

Step 1: The Appraisal Is Ordered

For mortgage-related appraisals, the lender places the order through an appraisal management company (AMC) or directly with a licensed appraiser. Federal regulations require that the lender, not the borrower or real estate agent, select the appraiser to maintain independence. For non-lending purposes like divorce, estate settlement, or tax appeals, the property owner or their attorney typically contacts an appraiser directly.

Once the order is placed, the appraiser reviews the assignment details and contacts the homeowner or occupant to schedule the inspection. Most appraisers try to schedule within a few days, but in busy markets the wait can stretch to a week or longer.

Step 2: The On-Site Inspection

The on-site visit is what most people picture when they think of an appraisal. It typically lasts 30 to 60 minutes for a standard single-family home, though larger or more complex properties take longer. The appraiser's goal during this visit is to observe and document the property's physical condition, features, and surroundings.

Exterior Inspection

The appraiser starts outside, noting the overall condition of the roof, siding, foundation, and landscaping. They observe the lot size and shape, the street scene, and any external factors that could affect value, such as proximity to busy roads, commercial properties, or power lines. The appraiser also checks for obvious structural concerns like foundation cracks or significant settling.

Interior Inspection

Inside, the appraiser walks through every room, noting the number of bedrooms and bathrooms, the condition of floors, walls, and ceilings, the age and type of major systems (HVAC, plumbing, electrical), and the quality of finishes. They pay attention to kitchen and bathroom updates because these areas have the most influence on market value. The appraiser also checks for signs of water damage, pest issues, or deferred maintenance.

Measuring and Sketching

The appraiser measures the exterior of the home to calculate gross living area (GLA). This is done with a laser measuring tool or tape measure, and the appraiser creates a floor plan sketch showing the layout and dimensions. The measured square footage may differ from county records or the listing, which is one reason lenders require a professional measurement rather than relying on existing data.

Photo Documentation

Expect the appraiser to photograph the front, rear, and street scene of the property, along with every room inside, the kitchen, bathrooms, any recent improvements, and the view from the property. Lenders require a minimum set of photos, but most appraisers take more than the minimum to thoroughly document conditions. For FHA and VA appraisals, additional photos documenting health and safety conditions are required.

Step 3: Comparable Sales Research

After leaving the property, the appraiser begins the research phase, which is often the most time-consuming part of the assignment. They search the MLS, public records, and other data sources for recently sold properties that are similar to the subject in size, age, condition, and location. These comparable sales (commonly called "comps") form the foundation of the value opinion.

Ideal comps are properties that sold within the last three to six months, are located within a mile of the subject (or in the same neighborhood), and are similar in size and features. In practice, finding perfect comps is rare. The appraiser uses professional judgment to select the best available comparables and then makes dollar adjustments to account for differences. For example, if a comp has a two-car garage and the subject has a one-car garage, the appraiser adjusts the comp's price downward to reflect the difference.

Step 4: The Three Valuation Approaches

Appraisers have three recognized methods for estimating value. For residential properties, the sales comparison approach carries the most weight, but understanding all three helps you make sense of the final report.

• Sales comparison approach. The appraiser selects comparable sales and adjusts their prices to account for differences with the subject property. This is the primary method for most residential appraisals because it directly reflects what buyers are paying in the current market.
• Cost approach. This method estimates what it would cost to rebuild the home from scratch, minus depreciation, plus the land value. It is most useful for new construction or unique properties where comparable sales are scarce.
• Income approach. Used primarily for investment and rental properties, this method estimates value based on the income the property can generate. The appraiser analyzes rents, vacancy rates, and operating expenses to arrive at a value through capitalization.

After developing one or more approaches, the appraiser reconciles the results into a single opinion of value. For a typical single-family home purchase, the sales comparison approach usually drives the final number.

Step 5: Report Writing

The appraiser compiles their findings into a formal written report. For most residential lending assignments, this is done on the Uniform Residential Appraisal Report (URAR) form, also known as Fannie Mae Form 1004. The report includes a description of the neighborhood and market conditions, the property's physical characteristics, the comparable sales used, adjustment grids showing how each comp was adjusted, photographs and the floor plan sketch, and the appraiser's final opinion of market value.

The report is a detailed document, typically running 20 to 40 pages with all exhibits and addenda. For non-lending appraisals, the format may be a shorter summary report or a narrative report, depending on the client's needs and the scope of the assignment.

Step 6: Delivery and Review

Once the report is complete, the appraiser delivers it to the client (usually the lender or AMC). The lender's underwriter reviews the report for completeness, accuracy, and compliance with lending guidelines. If the underwriter has questions or finds issues, they may send a revision request back to the appraiser. Common revision requests include adding additional comparable sales, clarifying adjustments, or providing more photos.

Under federal law, you have the right to receive a copy of your appraisal report at least three days before closing, regardless of who paid for it. If you are the borrower, ask your lender for the report so you can review it.

How Long Does the Whole Process Take?

From order to delivery, most residential appraisals take 7 to 14 business days. The on-site inspection itself is quick (under an hour for most homes), but the research and report writing take several hours of desk work. Here is a rough breakdown by loan type:

• Conventional loans: 7 to 10 business days on average.
• FHA loans: 10 to 14 business days, due to additional inspection requirements.
• VA loans: 10 to 14 business days. In some regions, VA appraisals take longer because fewer appraisers are on the VA panel.
• Non-lending appraisals: Often faster (5 to 10 business days) because there is no AMC or lender review layer.

In hot markets or during seasonal peaks (spring and summer), turnaround times can stretch. If speed matters, ask about rush fees when the appraisal is ordered.

Alternative Appraisal Formats

Not every appraisal requires a full interior inspection. Lenders and clients sometimes accept alternative formats depending on the risk level and purpose of the assignment.

• Desktop appraisal. The appraiser completes the entire assignment using public records, MLS data, and third-party sources without visiting the property. These are faster and cheaper but only accepted for certain low-risk lending scenarios.
• Drive-by appraisal. The appraiser views the property from the street but does not enter. They assess the exterior condition and then complete the report using comparable sales data. This is common for refinances or portfolio reviews.
• Hybrid appraisal. A trained third party (not the appraiser) inspects the property and collects data, photos, and measurements. The licensed appraiser then completes the valuation using that data. This model is growing in popularity as a way to reduce costs while still getting boots on the ground.

How to Prepare for Your Appraisal

While you cannot control the appraiser's final opinion of value, you can make the process go smoothly. Make sure the appraiser can access all areas of the home, including the attic, basement, and garage. Tidy up so the property shows well, but do not invest in major renovations just for the appraisal. Have a list of recent improvements ready (new roof, updated kitchen, HVAC replacement) with approximate dates and costs. If you know of comparable sales in your neighborhood that support your home's value, you can mention them, but do not pressure the appraiser toward a specific number.

Find an Appraiser

Whether you need an appraisal for a purchase, refinance, or another purpose, finding the right appraiser starts with knowing who is licensed and active in your area. You can search for licensed appraisers on AppraiserPoint to find qualified professionals near you.