The appraiser will:
- Conduct inspections of readily observable items inside and out.
- Make note of the size and condition of the house and describe any improvements that have been made.
- Evaluate the sale prices of similar homes in the neighborhood and take note of recent improvements or developments in the neighborhood.
(While overall maintenance of the home and surrounding land will be considered, a messy playroom or a few weeds in the front garden will not affect the appraisal.)
The final appraisal report will include the value of the appraisal house, any other permanent structures on the property, and the land itself. This number will be used to determine the loan amount you can get. A home with an asking price of $300,000 that is appraised at $250,000 will have a hard time finding a buyer who can qualify for a loan.