What is an Appraisal for?

Selling? Refinancing? Buying? Insuring? Each purpose factors in differently when determining your home’s value. 

Appraisals consist of many variables. If you are refinancing, the appraisal could come in under the original purchase price, because it is based around the price the house would currently sell for. If you are purchasing insurance for your home, the appraiser accounts for current costs of rebuilding and to find a fairly accurate value of your home.

 Also, when selling a home, keep in mind one of the most important factors – the market. Real estate agents and appraisers will attach a value to your home based on recent neighborhood sales, the current economy, and the value of the real estate. 

An appraisal is an approximate temporary value of your home. A sudden shift in the economy or a neighborhood house selling for above market value can affect your home’s value. Keep your information up to date to ensure you are getting the most out of your appraisal transaction.

 If you are unsatisfied with your first appraisal, seek a second. Each appraisal is not calculated down to the dollar, but is subject to the appraiser’s estimate of the value. Some appraisers may value landscaping highly; others, appliances. It can only help to have two values to compare the true value of your home, even if the cost of the appraisal comes out of pocket.

Use your local REALTOR’s expertise for more information on whom to contact and the best times to have your home appraised.



  1. I’ve found appraisals to be spot-on accurate and miles off, as well. Hire three different appraisers and see how much they vary. Is that practical? I’m not sure.

    Find an agent who does the work to produce a quality manually-adjusted CMA is my recommendation.

  2. Home valuation code of conduct seems to have tainted the industry’s objectiveness. Recently while selling a short sale house for a client the mortgage company sent an appraiser from a different state to appraise the home. That appraiser valued the home 20% different than a local appraiser. A $40,000 difference on a $200,000 home.
    If you decide to have your home appraised look for local appraisers with excellent credentials.

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