Real Property Appraisal: A primer

Choosing when to buy a home can sometimes be overwhelming. It’s not just a house, it’s a home. Whether you live there full-time or it’s a vacation property, this is an investment that requires a number of important cards to fall into place.

In most cases the parties are acquainted. When getting a conventional or FHA / HUD appraisal the person most often dealt with by the buyer is the real estate broker. Another important piece of the puzzle is the financial capital that is supplied by the chosen bank. The title company is responsible for making sure that the title is clear for the buyer to acquire from the seller.

Who is responsible for ensuring that the property value is even with the purchase price? The appraiser! Our job is to offer a fair value of how much a buyer can expect to pay – with both buyer and seller being kept up to speed. One of our professional Pennsylvania-certified appraisers at The Appraising Group will work to keep you informed.


Our first job at The Appraising Group is to inspect the home to learn of its true status. We will first-hand inspect things like the number of beds and baths, the position of the property and what amenities there are. We must make sure they are as described and in functional condition. In an effort to denote the accurate size and layout of your property, an appraiser may decide to create a sketch of the floor plan. One of our highest priorities is finding any amenities or problem areas that could influence the value of the home.

After the inspection is complete, our experts apply two or three approaches to determine the value of the property: a paired sales analysis, a replacement cost calculation, and an income approach (if it is a rental situation).


Choosing an expert appraiser means that they know the community well. We have a deep understanding of how valuable where you live is to you. The assessor spends time researching recent sales in the area and generates a list of homes that are comparable to the property of interest. They will also take into account the value of home elements like the size, number of bathrooms, pool, fireplace, beautiful vie, and a number of other aspects. We then adjust the price considering the comparable sale prices to find the best valuation considering the specific aspects of the property.

  • Let’s say a comparable home has an updated kitchen and the subject doesn’t, the appraiser will often deduct the value of the kitchen remodel from the sales price of the comp.
  • However, if the subject has the remodel that a comp lacks, an appraiser can add the value of that kitchen to the comp property.

We at the The Appraising Group are pros at understanding the importance of real estate features in Pennsylvania. Our focus on the value of your home is often given high consideration during an appraisal for a home purchase.


Using this method, the assessor evaluates data about local construction prices, the price of labor and other details that help determine the cost of building a similar property to that being appraised. Often, this value creates a maximum price for what the property list price might be. This is generally the least implemented method.


Another method to find a homes value can be applied by looking at rentals in the area. Using this information, assessors can determine the rental revenue and pair this information with the income of nearby rentals to estimate your property value.


By taking into consideration information from each step, the appraisal expert can then arrive at the estimated valuation for the property being assessed. While the number provided is not necessarily what your property will sell for, it is a solid idea of how much you might expect to earn from the sale. Many factors like the timetable for selling, how sought after your property is and many others will determine the final price tag. The appraisal price can be used by a financial institution, which makes it a habit not to loan more than they would recover in the case that they had to resell the property. In the end, an appraisal expert from The Appraising Group will ensure that you get the best valuation for your property, this will help you make sound decisions about your future.