Real Estate Appraisal Procedure

Determine the purpose of the appraisal, such as for a mortgage loan, tax assessments, or for sale or purchase.

Select a professional and certified appraiser with experience in the specific property type and market area.

The appraiser conducts an initial review which includes the gathering of data on the subject property and scheduling an on-site inspection.

Conduct an on-site inspection to assess property condition, quality, and features, as well as take measurements and photographs.

Perform a detailed market analysis, including reviewing comparable sales, current market trends, supply and demand conditions, and the location's impact.

Apply appropriate appraisal methods - typically the cost, sales comparison, and income approaches - to determine the property's value.

Compile the findings and analysis into a comprehensive appraisal report, adhering to the reporting standards like the Uniform Standards of Professional Appraisal Practice (USPAP).

Submit the completed appraisal report to the client, detailing the property's value and the reasoning behind it.

Enable the client or other stakeholders to review the report and, if necessary, ask questions or seek clarification on specific points.

Ensure the hired appraiser is properly licensed or certified in accordance with state and federal guidelines.

The appraiser must adhere strictly to a code of ethics and maintain objectivity and independence throughout the appraisal process.

In some cases, the appraiser may need to consult with other experts, such as engineers, architects, or land surveyors.