A Comprehensive Guide to the Residential Appraisal Process
Understanding what happens during a residential appraisal helps reduce anxiety and ensures you're prepared when an appraiser visits your Pennsylvania home. From initial contact to final report delivery, here's exactly what to expect.
Step 1: Ordering the Appraisal
Who Orders the Appraisal?
The appraisal ordering process varies by situation:
- Purchase or Refinance: Your lender orders through an Appraisal Management Company (AMC)
- Tax Appeals: Homeowners order directly from licensed appraisers
- Estate or Divorce: Attorneys or executors initiate the order
- Private Purposes: Property owners can order directly
Timeline Expectations
Standard timeframes for Pennsylvania residential appraisals:
- Scheduling contact: Within 24-48 hours of order
- Inspection scheduling: 3-5 days from initial contact
- Report delivery: 24-48 hours after inspection
- Rush services: 24-hour turnaround available
Step 2: Pre-Inspection Preparation
Scheduling the Visit
When the appraiser contacts you:
- Flexible scheduling to accommodate your availability
- Inspection typically takes 30-60 minutes
- You don't need to be present, but it's helpful
- Provide access to all areas including basement and attic
What to Prepare
Documents and information to gather:
- List of recent improvements and renovations
- Receipts for major upgrades (kitchen, bath, roof, HVAC)
- Property survey if available
- Homeowners association documents
- Recent utility bills showing energy-efficient upgrades
Step 3: The Property Inspection
Exterior Assessment
The appraiser will evaluate:
- Overall Condition: Roof, siding, windows, foundation
- Lot Characteristics: Size, grading, drainage, landscaping
- Driveway and Garage: Condition and capacity
- Outbuildings: Sheds, detached garages, pools
- Neighborhood: Street condition, nearby properties
Interior Inspection
Inside your home, the appraiser will:
- Measure Square Footage: Accurate dimensions of all levels
- Room Count: Bedrooms, bathrooms, and other spaces
- Condition Assessment: Flooring, walls, ceilings
- Kitchen and Bathrooms: Updates, quality, functionality
- Systems: Heating, cooling, plumbing, electrical
- Special Features: Fireplaces, built-ins, finishes
Photography
Expect the appraiser to photograph:
- Front, rear, and side exterior views
- Street scene showing neighborhood
- Major rooms (living, dining, kitchen)
- Bathrooms and bedrooms
- Special features or recent improvements
- Any issues or defects noted
Step 4: Market Research and Analysis
Comparable Sales Selection
After leaving your property, the appraiser:
- Searches for similar properties sold in past 3-6 months
- Prioritizes homes within 1 mile when possible
- Matches bedroom/bathroom count and square footage
- Considers age, condition, and quality
- May expand search area in rural locations
Adjustment Analysis
The appraiser makes adjustments for differences:
- Size Differences: Add or subtract value per square foot
- Condition Variations: Account for updates or deferred maintenance
- Feature Differences: Garages, pools, finished basements
- Location Factors: Superior or inferior locations
Step 5: Report Preparation
Report Components
Your appraisal report will include:
- Property Description: Detailed information about your home
- Neighborhood Analysis: Market conditions and trends
- Comparable Sales: Three to six similar properties
- Adjustments Grid: How each comp differs from your property
- Valuation: Final opinion of market value
- Photos and Maps: Visual documentation
Quality Review
Before delivery, reports undergo:
- Internal quality control review
- Verification of all calculations
- Compliance check with USPAP standards
- Grammar and formatting review
Step 6: Report Delivery and Review
Receiving Your Report
Depending on the appraisal purpose:
- Lender-Ordered: Report goes to your lender first
- You may request a copy: Lenders must provide upon request
- Direct Orders: Report delivered directly to you
- Format: Usually PDF via email or secure portal
Understanding the Value
When reviewing your appraisal:
- Compare the comparable sales used
- Review adjustment amounts and reasoning
- Check that all property details are accurate
- Note the effective date of value
Common Questions During the Process
Can I Talk to the Appraiser?
Yes, but with limitations:
- You can provide factual property information
- Share documentation of improvements
- Point out features that might be missed
- Cannot discuss value or try to influence the appraisal
What If I Disagree with the Value?
Options if you believe the appraisal is inaccurate:
- Request Reconsideration: Provide additional comparable sales
- Point Out Errors: Incorrect square footage, missed features
- Second Appraisal: Order another appraisal if needed
- Formal Appeal: Follow lender's appeal process
After the Appraisal
Lender Review
If for a mortgage transaction:
- Lender reviews for USPAP compliance
- Underwriters assess risk based on value
- Loan-to-value ratio calculated
- Final loan approval or conditions issued
Record Retention
Important to know:
- Appraisers must retain reports for at least 5 years
- Keep your copy for future reference
- May be needed for tax purposes
- Useful for insurance claim documentation
Pennsylvania-Specific Considerations
- Licensing: All appraisers must be state-licensed or certified
- Market Variations: Urban vs rural areas affect timelines
- Historic Properties: May require additional research
- School Districts: Significant value impact in Pennsylvania
Understanding the complete appraisal process helps you prepare effectively and know what to expect at each stage. Professional appraisers work diligently to provide accurate, well-supported valuations that serve your needs whether buying, selling, refinancing, or appealing property taxes in Pennsylvania.