What Real Estate Appraisers Look at During an Appraisal!

Have you ever wondered what real estate appraisers look for when determining your home value? Let's shed light on the mysteries of what real estate appraisers look at during an appraisal!
#RealEstateAppraisal #appraisal #homevalue

When it comes to a home appraisal, we don't often hear about "above-value" appraisals and, more often than not, we're fixated with your home value coming in at the contract price. On the other hand, we've all heard about "low appraisals" which stoke fear about the appraisal process.

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What you'll learn:
1. What do appraisers look for when determining a property's value?
2. What does an appraiser look for in a house!
3. How to prepare for a home appraisal!

📒 Show Notes 📒
Timeline:
0:00 - Intro
0:53 - What "exactly" do appraisers appraise? The 5 main categories of the real estate appraisal process!
1:03 - Category 1: The exterior of your home!
2:03 - Category 2: The size of your property!
2:37 - Category 3: The interior condition of your house!
3:03 - Category 4: Your home improvements!
4:04 - Category 5: Features & amenities of your house!
4:45 - How does an appraiser determine the value of your home?
6:24 - How to challenge a "low appraisal!"
8:30 - 6 Ways to avoid a low home appraisal!
11:33 - Real estate appraisal myths!

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Andrew Finney
USMC Combat Veteran/ Trusted Real Estate Advisor
License #S.0173260

King Realty Group
6955 N. Durango Dr. Suite 1004
Las Vegas, NV 89149

Designations-
Certified Residential Specialist (CRS)
Accredited Buyer's Representative (ABR)
Sellers Representative Specialist (SRS)

Certifications-
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Disclaimers/ Credits:
At the time of production, Andrew Finney, S.0173260, is a real estate salesperson with King Realty Group (KRG) in Las Vegas, NV. Andrew's videos are his own and do not necessarily represent the views and/ or opinions of KRG. The purpose of Andrew's videos is to educate you and help you make sense of the real estate process. I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. If you have questions about home loans, real estate, taxes, financial advice, real estate law, insurance, professional trades, or any other services, you are advised to reach out to the appropriate professional for further counsel about your own unique situation. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or any other and may be outdated or inaccurate; it is your responsibility to verify all information for yourself. We have taken reasonable steps to check that the information in this video is accurate but we cannot represent that is free from error. Linked items may create a financial benefit for Andrew Finney Team. Any use of other media is by fair-use or license only.

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[AndrewFinney]

🔍 Get Connected with a TOP Real Estate Agent Near You 🔍
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[justerr-eh]

wow, I am a certified RE appraiser, and this is the best description of an inspection I've ever heard from a non-appraiser. Well done.

[barbarajansen]

A quick tip to keep in mind: the rain gutters. It can cause run offs going to the wrong places causing leaks. No need to replace them. You can hire someone to tighten and seal all the gutters saving you 2/3 of the cost of replacing them.

[kevinflankey]

Andrew, As a retired residential appraiser and instructor, I take issue with your remarks made approximately between 2:10 and 2:25: Residential appraisers DO NOT arrive at a dwelling's appraised-value by determining a specific "price-per-square-foot and then multiply by the number of square-feet of the house to arrive at a value. It doesn't work that way. Of the three Approaches to Value found in a standard Uniform Residential Appraisal Report, none are as simplistic as you describe. An equally beneficial video would be one titled, more or less, "How to Identify an Improper Appraiser when he or she comes to your door."

When the appraisal appointment is set-up, prior to the visit, obtain the appraiser's name and write it down. Verify that name when the person arrives at your door. It is not unheard of, for appraisers to send out trainees, unlicensed friends or family members, etc to do the actual inspection. If the "appraiser" at the door can't produce a photo-ID, driver's license or a business card with a matching picture, refuse entry and then notify the loan officer.

If the appraiser's identity is verified and is allowed to proceed, ask if they are working by themselves, or have an assistant. This is relevant to the amount of time spent performing a proper interior/exterior appraisal inspection. Working by myself, a typical suburban, 1500-1800sf single-family dwelling should take approx 30-45 minutes total. More time if it is a FHA appraisal and the attic needs to be entered. If your appraiser is working by themselves and is "in, out and gone" in 10-15 minutes, then report the appraiser to your loan officer. Every lender that has engaged me for a full inspection, required me to physically measure the exterior of the dwelling and sub-areas such as garages and porches/patios. Tape-measure, laser pointer, whatever. We are supposed to measure the dwelling to VERIFY the data in public records, such as your county property appraiser's website. The unethical, the unprofessional appraiser likely is using the sketch of your home's footprint that's found on-line. Why bother spending 20-30 minutes in the sun or cold when the "info" is "right there?" Because you are supposed to be a professional appraiser and you don't cut corners like that. IF you don't measure the dwelling and you actually disclose this fact in your report, you can't bury it on a back page, amid paragraphs of boiler-plate. I've found significant size errors with two-story dwellings.

Finally, make sure your appraiser has the "Geographical Competency" and Housing-style Competency for the assignment. Although my license has "State of Florida" on it, as opposed to a specific county, beware of appraisers from out of the area that received the assignment because they were the low bidder. They will not be aware of nuances that influence value such as school-zones or historic districts. If you own a pre-WW2 home, ask if the appraiser has experience in this type of dwelling, especially if there is an accessory building such as a detached garage/apartment. If the appraiser is used to nothing but cookie-cutter homes in big, homogeneous, PUDs...where you could drive a half-mile in any direction and the housing and views don't change, then there is a good chance they will come up with a screwy appraisal in a heterogeneous, downtown neighborhoods where the value of the same identical house could change block-by-block.

I've found shoddy, poorly written reports to be the norm. Zillow algorithms would be quicker and just as reliable.

[barak]

Decent explanation. A few things to note: you want your property to conform to the general standards of the neighbourhood. Certain improvements or upgrades to the property do not always translate to the same ROI between different geographic areas. For example: adding a pool to your property in a neighbourhood where pools are in demand and purchasers are generally expecting a pool will be a worthwhile investment. In another neighbourhood, pools can be seen as undesirable due to the maintenance that comes along with them and can turn out to be a poor investment. The key is to conform. If you buy a non-renovated home in a neighbourhood where majority of the homes are renovated, chances are that you'll be able to turn a profit from renovating and selling the property. Vice versa if you over-renovate your home, chances are that you won't make back what you invested.

Appraisers do not consider the living conditions of the occupants nor do they make any assumptions about the property based on the lifestyle of the residents. The condition of the property is assessed to the appraiser's best ability while trying to overlook the clutter. Having a messy house can however interfere with the appraiser's inspection and cause them to overlook a positive feature of the property which can lead to an unfavourable appraised value.

[j.polishboy]

30 yr certified residential appraiser - spot on description of what we look for.

[MichaelSmith-hsiu]

"What's This", ...A guy that tells it right! Absolute "Best" video I've seen on the Appraiser industry. Thank You

[zakman]

I just found your YouTube video's or channel . I really like the information you give ! It's down to earth, straight forward and honest ! Now that's something I almost never say about a realtor, being honest !! Your information is true and very helpful to people who don't have a clue or never really worked on houses, buildings or in construction ! I really like the way you tell it straight, which is rare and without a bunch of hipe !! You're a realtor that I would work with if I were in your area . So I'll keep watching your videos to remind me on some things and things I'm not sure of as I've already learned something from one of your videos ! Keep up the good work !!

[avocadomegs]

What if you are getting a home appraised in a very small rural village where many homes haven’t been sold lately, how would appraiser go about getting comps?

[Roy-ijwq]

I would add the importance of pulling permits when required. When the market crashed in 2008 and money became tight bank appraisers in my area would verify with the municipality that all of the improvements including DIY improvements were properly permitted and inspected before they would approve the property for a loan. In some cases this results in the work having to be torn out and redone.

[rebeccawhite]

I have a question, does the size of the lot your house is on make any difference in the appraisal? We have 1.99 acres and the appraisar compared our house to houses that had .58 acres or less....we also have a pond...we are surrounded by subdivisions that were built around ponds...and she wrote that our area is not in the market for houses with ponds...while our home was first built in 1947, an addition to the house was done in 1970 or so...all the comps she compared our house to was only similar to year, bedrooms, etc. The pond, the lot square footage were not comparable at all. I found 3 that were way closer in everything plus lot size however the appraisor would not change her "price"...wouldn't you also want to include a lots square footage to be as similar to my house?? Thanks.

[sophiavackimes]

Thanks so much for being so thorough. Maybe a downloadable checklist could be added to your site?

[parkermichael]

What about detached garages and out buildings in need of repairs would they be required?

[veronicallamas]

Got my appraisal done today. We accepted a 570k offer and asking price was 575k. We did get 2 offers for asking price but I didn’t care for the contingencies and accepted 5k less. Can’t wait to find out what it appraises for. The appraiser did say he was going to add 25k to the value for all the front hardscape that we did. Fingers crossed

[sunshynebunnie]

Informative and helpful for homeowners.

[mountain-view]

Came on here after I got my appraisal report for my home. It appraised for 10, 000 more.

[tamarabrunozzi]

Absolutely love your beginning…new subscriber here thank you!!!

[freakyflow]

As a new buyer One of the biggest No! Is is cheap flooing vinyl, linoleum. This shows me somone tried to save money Like a flip Or it was last on the list On something you use everyday ..More white the better : Many times over have i seen a olive green toliet Or tub Pink, Black! And my first thought is well that will cost me to replace...Now your mind is on how much will each item you dont like cost you after you talk about the price of the house...White is clean And even if you want to replace something white It's not a stand out eye sore. This also go's for new baseboards I seen one place where the guy left the natural wood color Even patched up the little nail holes with wood dust and glue This stood out but in a nice way Even still You can paint over them in the future as your color to the walls etc Landscaping is another big deal People do not want to see what it could be in the future They want a wow factor And by simply flipping the dirt around the trees pulling weeds at the fence line, between the sidewalk Power washing the driveway wash down the door And windows, Always a welcome mat And fresh clean numbers of the address on the brick Two-Four-Five in scroll write is classy ...A Appraiser may give you a worth of the home My tid bits prevent people thinking to look else where

[debbymiller]

Excellent job explaining this process. An appraiser came through my house today. You have relieved my anxiety about what to expect once’s his report is available. THANKS FOR THE INFO!!

[BigThumpSC]

Semper Fi Marine! Great video. What about for a Refi? Thanks