FAQs

Frequently Asked Questions

The real estate appraiser is not a home inspector nor does he/she do a complete home inspection.  A home inspection is a third-party evaluation of the accessible structure and mechanical systems of a house, from the roof to the foundation.  The standard home inspector’s report will include an evaluation of the condition of the home’s heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.
Simply put, the difference is night and day.  The CMA relies on vague market trends.  The real estate appraisal relies on specific, verifiable comparable sales.  In addition, the real estate appraisal looks at other factors like condition, location and construct costs.  A CMA delivers a “ball park figure”.  A real estate appraisal delivers a defensible and carefully documented opinion of value. But the biggest difference is the person creating the report.  A CMA is created by a real estate agent who may or may not have a true grasp of the market or valuation concepts.  The real estate appraisal is created by a licensed, certified professional who has made a career out of valuing properties.  Further, the real estate appraiser is an independent voice, with no vested interest in the value of a home, unlike the real estate agent, whose income is tied to the value of the home.
Each real estate appraisal report must reflect a credible estimate of the opinion of value and must identify the following:
  • The client and other intended users
  • The intended use of the report
  • The purpose of the assignment
  • The type of value reported and the definition of value reported
  • The effective date of the real estate appraiser’s opinions and conclusions
  • Relevant property characteristics, include location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items
  • All known:  easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature
  • Division of interest, such as fractional interest, physical segment and partial holding
  • The scope of work used to complete the assignment
In communicating a real estate appraisal report, each real estate appraiser must ensure the following:
  • That the information analysis utilized in the appraisal was appropriate
  • That significant errors of omission or commission were not committed individually or collectively
  • That appraisal services were not rendered in a careless or negligent manner
  • That a credible, supportable appraisal report was communicated
Most states require that real estate appraisers are state licensed or certified.  The state licensed or certified real estate appraiser is trained to render an unbiased opinion based upon extensive education and experience requirements.  To become licensed or certified, real estate appraisers must fulfill rigorous education and experience requirements.  In addition, real estate appraisers must abide by a strict industry code of ethics and comply with national standards of practice for real estate appraisal.  The rules for developing a real estate appraisal and reporting it’s results are insured by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP).
Regulations regarding licensing and certification of real estate appraisers vary from state to state.  However, licensing and certification is most often associated with many hours of coursework, tests and practical experience.  Once a real estate appraiser is licensed, he or she is required to take continuing education courses in order to keep the license current.
Typically, real estate appraisers are employed by lenders to estimate the value of real estate involved in a loan transaction.  Real estate appraisers also provide opinions in litigation cases, tax matters and investment decisions.

The answer to this is different depending upon the location of the home. Different markets value amenities differently. Adding an In-Ground pool in Tallahassee or Crawfordville may add significant value, while putting one in a home located in Buffalo, New York might not have much impact.

As a rule, the most value returned from renovating a home comes in the kitchen. According to one national survey, kitchen remodels returned an average of 88% of the investment. In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home. Bathrooms were second, returning 85%.