What Do They Check During A Home Appraisal?

During a home appraisal, a licensed professional primarily evaluates the property's general condition, size, and features to estimate its fair market value compared to similar homes recently sold in the area. They do not conduct a deep mechanical inspection but instead focus on observable structural integrity, permanent improvements, and overall habitability. Structural Integrity and Exterior The appraiser begins by assessing the physical "bones" of the house to ensure it is sound and free of major defects. This includes a visual inspection of the foundation for cracks or water damage and an evaluation of the roof's condition to verify it prevents moisture intrusion. They also examine the quality of the siding, windows, and gutters, as well as the condition of the driveway and garage. The lot's topography, size, and drainage are also noted, along with the overall "curb appeal" or landscaping quality. Interior Condition and Systems Inside the home, the appraiser verifies the total number of bedrooms, bathrooms, and total rooms, while measuring the square footage of the living area above grade. They look for signs of neglect or damage, such as water stains on ceilings, cracked walls, or damaged flooring materials like hardwood or tile. While they do not test every outlet, they check for the general functionality and visible condition of major systems, including plumbing, lighting, and HVAC units. Safety issues are a priority; for example, they check for lead-based paint in older homes, proper ventilation, and the presence of handrails on staircases. Improvements and Amenities Any permanent upgrades or high-value features are documented to adjust the home's valuation. Appraisers look for modernized kitchens and bathrooms, finished basements, and energy-efficient upgrades that distinguish the home from neighbors. They also assess "accessory" features that add value, such as fireplaces, swimming pools, sprinkler systems, and accessory dwelling units (ADUs). Conversely, deferred maintenance, such as peeling paint or broken appliances, is noted and may negatively impact the appraisal value. Appraisal vs. Home Inspection It is common to confuse an appraisal with a home inspection, but they serve different purposes and check different things. Feature Home Appraisal Home Inspection Primary Goal Determine fair market value for the lender Identify safety issues and repairs for the buyer Scope Visual, high-level overview of value factors Deep dive into mechanicals and functionality HVAC/Systems Checks if they exist and appear functional Tests performance, age, and maintenance needs Attic/Crawlspace Distinct "Head and shoulders" look Full entry and crawl to find hidden defects