{"id":4333,"date":"2026-02-27T20:00:07","date_gmt":"2026-02-27T20:00:07","guid":{"rendered":"https:\/\/rodliwebstrategies.com\/moore\/?page_id=4333"},"modified":"2026-04-04T17:32:56","modified_gmt":"2026-04-04T17:32:56","slug":"appraisal-faqs","status":"publish","type":"page","link":"https:\/\/www.mooreappraisalfirm.com\/index.php\/appraisal-faqs\/","title":{"rendered":"Appraisal FAQs"},"content":{"rendered":"\t\t
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Still looking for answers?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Contact us to find answers to your questions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Telephone<\/a><\/h4>\t\t\t\t<\/div>\n\t\t\t\t
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(406) 442-6180<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Email<\/h4>\t\t\t\t<\/div>\n\t\t\t\t
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shaun@mooreappraisalfirm.net<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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FAQs<\/h2>\t\t\t\t<\/div>\n\t\t
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Why is an appraisal necessary? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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The lender orders the appraisal to obtain an accurate description of the property and an independent opinion of value. The lender uses the appraisal to document that the real estate is appropriate collateral and determine whether the value of the property is sufficient to support the lending decision.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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Why isn\u2019t the consumer considered to be the client when he or she pays the appraisal fee? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Federal banking regulations require the financial institution to be the client, regardless of who pays the fee.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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How does the appraiser develop the value opinion? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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The appraiser researches market data, public records and talks with buyers, sellers and real estate brokers active in the market area. Data researched includes sales, leases, and current listings of similar properties. Other data include land sales and residential construction costs. After all factors affecting the value are considered, the appraiser develops an opinion of value and prepares an appraisal report.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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I have heard about problems with appraisers traveling long distances to appraise homes? How far is too far? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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The issue isn\u2019t so much \u201cdistance\u201d or \u201chow far is too far,\u201d rather the question that should be asked, \u201cIs an appraiser from outside of my area competent to appraise my property?\u201d Some appraisers work in many geographic areas and range in which they normally appraise and they may not have the data or the experience to be competent outside their local market.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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What information should I provide to the appraiser? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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The more information the appraiser has bout your property, the better he or she will be able to develop a credible result. They appraiser will be interested in knowing if there are any private agreements or restrictions, easements or rights of way, encroachments, \u201cagreed to\u201d arrangements with the abutters (e.g. , fences, walls) on the property, etc. The appraiser may ask about the property\u2019s title, sales and rental history, and occupancy. He or she might ask if the property is under a pending purchase and sales agreement or option and, if so, the details about the agreement or option. If the property sold in the last three years, the appraiser may ask about the details of the transfers. Finally , the appraiser may inquire about physical characteristics of property, including any additions, permits, etc.If you are hiring the appraiser directly, the appraiser will want to know what the intended use of the appraisal will be. (NOTE: If you are engaging the appraiser to prepare an appraisal for a federally-related transaction, you should know that the lender or the lender\u2019s agent is required to engage the appraiser).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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What should the appraiser do when he or she inspects my home? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Based on the client\u2019s intended use of the appraisal, the appraiser determines whether an interior and\/ or exterior inspection or no inspection required. Under many circumstances, the lender will require a full viewing of the property including an exterior and interior inspection. Assuming that a complete inspection is required, the appraiser inspects the site, site improvements, and building improvements. The appraiser consider the site\u2019s size, shape, topography, drainage, and any other attributes that may affect value. He or she views the site improvements (e.g. , paving, fences, and walls, landscaping) to determine their contribution of value to the property. Finally, the appraiser inspects any structures. Some of the items considered are building style, number or stories, size, number or rooms (including bedrooms and baths, etc). He or she observes the structure\u2019s condition as an aid to estimation depreciation. In addition, the appraiser considers the property as a whole, including the dwelling and any other improvements as well as any visible encumbrances (e.g. power lines, encroachments). Finally, the appraiser considers the property in relation to the neighborhood.An appraiser\u2019s inspection and a home inspection are different. An appraiser gathers information to develop a value opinion and a home inspector gathers information to identify construction features, structural integrity, and any needed repairs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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What is a comparable sale or comparable listing? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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A comparable sale is a recent sale that is similar to the subject property in terms of physical and functional attributes and location. A comparable listing is a current listing that is similar to the subject property in terms of physical and functional comparison approach. In most cases, the sales comparison approach is the most reliable indicator of value for a residential property because it most directly reflects the actions of buyers and sellers in the market.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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Why does an appraiser make \u201cadjustments\u2019? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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In developing an opinion of the value of a property, an appraiser considers recent sales of similar properties. Generally speaking, the sales that are the most similar to the property being appraised are the best indicators of value. However, since rarely are two properties exactly the same, the appraiser must account for differences between the property that sold and the property being appraised. These differences are called \u201cadjustments.\u201d Adjustments are added or subtracted from the sale prices of the comparables to indicated an adjusted sale price for the property being appraised.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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In what circumstance would an appraiser use the cost approach and\/ or sales comparison approach? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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The cost approach is based on the premise that an informed purchaser would pay no more for the subject property than the cost of constructing a substitute property with the same utility. Differences between the sales comparison approach and the cost approach are particularly evident when the property being appraised involves older improvements where depreciation due to age and functional obsolescence are difficult to estimate, or when the improvements are relatively unique or specialized and there are few comparable properties. If completed correctly, under ideal circumstances the indicated value by the cost approach should be similar to the estimated value by the sales comparison approach.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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What should I do if I believe a correction is needed to the appraisal report? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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First, write a letter or email to the lender describing the problem and provide any evidence you have. For example, if the appraisal has an incorrect living area size for the subject property, provide factual evidence which supports your position. If you believe the appraiser selected comparables that were not the most comparable, submit a list of the comparables you would like him or her to consider. The lender will provide this information to the appraiser and request the appraiser to consider what\u2019s been submitted.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Still looking for answers? Contact us to find answers to your questions. Telephone (406) 442-6180 Email shaun@mooreappraisalfirm.net FAQs Why is an appraisal necessary? The lender orders the appraisal to obtain an accurate description of the property and an independent opinion of value. The lender uses the appraisal to document that the real estate is appropriate […]<\/p>\n","protected":false},"author":1,"featured_media":4385,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-4333","page","type-page","status-publish","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.mooreappraisalfirm.com\/index.php\/wp-json\/wp\/v2\/pages\/4333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mooreappraisalfirm.com\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mooreappraisalfirm.com\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mooreappraisalfirm.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mooreappraisalfirm.com\/index.php\/wp-json\/wp\/v2\/comments?post=4333"}],"version-history":[{"count":19,"href":"https:\/\/www.mooreappraisalfirm.com\/index.php\/wp-json\/wp\/v2\/pages\/4333\/revisions"}],"predecessor-version":[{"id":4985,"href":"https:\/\/www.mooreappraisalfirm.com\/index.php\/wp-json\/wp\/v2\/pages\/4333\/revisions\/4985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mooreappraisalfirm.com\/index.php\/wp-json\/wp\/v2\/media\/4385"}],"wp:attachment":[{"href":"https:\/\/www.mooreappraisalfirm.com\/index.php\/wp-json\/wp\/v2\/media?parent=4333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}