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Home Appraisal Basics

When you apply for a mortgage, an independent appraisal may be completed on your property to determine its value. It's important to remember that the appraiser has no control over your home’s value, but instead reviews the condition of the home and interprets the market to arrive at an estimated value.

Several determining factors influence an appraisal:

  • Condition of the housing market
  • Property location and neighborhoods
  • Compared value of similar homes
  • Physical condition
  • Amenities
  • Number of bedrooms and bathrooms
  • Age and design
  • Overall appearance, interior and exterior
  • Energy efficiency and appliances


Before arriving at a final decision, the appraiser must complete a considerable amount of market analysis, in addition to property specific research. There's also the need to precisely define the purpose of the appraisal. There are, for example, various types of value -- including fair market value, insurance value, tax value and value in use.

Learn more about the appraisal process by talking with your Loan Originator.