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The Appraisal Process
Typically, a bank or third-party mortgage company will order the appraisal. However, there are many situations when you may want to order your own appraisal. These situations include, but are not limited to, pre-listing, divorce, estate planning, and asset management. See our Services page for more detail.
1. I have never had an appraisal on my house before. What is an appraiser looking at during their inspection?
An appraiser evaluates your home with an objective and comprehensive lens, considering its value from a broader market perspective. Key factors that influence the value of your home include the overall square footage of the house and garage, the number of bedrooms and bathrooms, outbuildings, as well as the quality and condition of exterior and interior finishes. They will require to see every room and take pictures.
2. I'm moving, what about all the clutter and boxes?
Don't worry about moving boxes or light clutter. The appraiser is trained to look beyond items that do not affect the health, safety or soundness of your home.
3. What are considered health and safety items?
The appraiser is not a building inspector or engineer. But there are situations that the appraiser will identify and communicate to the bank as needing correction or repair for health and safety reasons. These items may include, but are not limited to, smoke detectors, CO2 detectors, seisemic strapping of the hot water heater, proper egress windows in bedrooms, handrails on interior/exterior steps, proper fire barrier between garage and living space, and chipping/peeling exterior paint (VA/FHA). The appraiser will also indentify obvious foundation settlement or roof failure. However, the appraiser will only observe readily available parts of home/structure and is required to have only a basic knowledge of potential issues.
Therefore, it is always recommended that a buyer aquire a building inspection from a qualified professional. There are many possible issues and situations that can affect the health, safety and soundness of a home that are outside of the scope of work for an appraiser.
4. What is the difference between conventional, VA and FHA loans?
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They are a little more versatile and often are less stringent when it comes to minimum property requirements.
Veterans Affair (VA) loans are government-backed mortgages for eligible Veterans, service memeber, and surviving spouses. They are issued by private lenders and guaranteed by the US Dept of Veterans Affairs. They offer many Buyer incentives, but do require a higher level of minimum property requirments than conventional loans concerning issues related to health, safety and soundness of the home. This can lead to additional required repairs during the appraisal process. See Question #3 above.
Federal Housing Administration (FHA) loans are government-backed mortgages insured by the federal government. They offer many Buyer incentives, but do require an even more strict level of minimum property requirements than conventional or VA loans concerning issues related to health, safety and soundness of the home. This can lead to additional required repairs during the appraisal process. See Question #3 above.
5. How long will the inspection take?
Depending on the size of the home and number of outbuildings, an appraisal inspection can take anywhere between 30-60 minutes.
6. I am disappointed with the appraiser's opinion of my home. What can I do?
Many banks have a formal process to which you can request a Reconsideration of Value (ROV). Alaska is a non-disclosure state. This can result in pertinent market data not being available to the appraiser. If there is legitimate and verifyable market data not identified in your original appraisal, submit it to the lender for furthur appraisal review.
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