Real Property Appraisal: A primer

For some time you have promptly paid your PMI in order to live in the home you love. So, when it’s time to get rid of that pesky additional fee, an appraisal becomes a very important step. To make sure that you check all the boxes to remove your PMI you need experienced professionals who can help you make your way through the process with ease.

When the time comes to remove your Primary Mortgage Insurance, an appraisal becomes a very key element. There are a number of important people who work together to ensure that all of the boxes are checked. You will work with your lender, your bank and in many cases a title company to make sure that each step of the process is completed.

There must be someone who makes sure that the appraisal price matches the purchase price. Of course – the appraiser. What we do is give you the fair assessment of your homes value to determine if removal of your PMI is warranted. You are kept in the loop about the appraisal process throughout. One of our professional Pennsylvania certified appraisers will make your interests a priority and keep you in the know.


By inspecting your property we can complete the first task of obtaining information on the homes status. In order to arrive at a true appraisal we must go through the property to make sure the home has the reported number of bedrooms and bathrooms and indicate any special features or amenities included on the property. We will also make sure to check the condition of the home to arrive at a fair value. In order to create a graphical representation of the homes particulars, an assessor may create a sketch of the homes floor plan and size. If any defects or problems present themselves, the assessor makes this note a priority as it can impact property value.

After the inspection is concluded we apply two or three standard computations in order to determine the true value of the property. Most commonly used is a replacement cost calculation, a paired sales evaluation, or an income approach (in the case of rental properties being involved).


Our appraisers make it a priority to understand the community your live in. They know what home elements are attractive to local buyers, which help increase the value of your home. They start the process of building a valuation by looking closely at recent sales of homes that closely match your specifics. They then add or subtract value based on the individual elements of your home. Any home elements that add value are taken into consideration, specifically things like updates, remodels, special views or other amenities. These two parts are put together to come up with the true value of your home.

  • Let’s use the example of a recent home sale where the property includes a state-of-the-art home automation system. When the appraiser makes the calculation, they may reduce the value of that system from the sales price of the recently sold home.
  • However should the home being appraised have the automation system and the recent sale does not, the appraiser will likely add the value of that system to the comparable property.

At The Appraising Group, we know the value of real estate qualities for homes in Pennsylvania.


Applying the cost approach means that the appraiser can find the top price that buyers might pay for the property. They use an analysis of labor and material costs to figure out how much it would cost to build the same property in the current market. While there is some use for this method it is rarely applied to traditional appraisals.


A third method that can be used in home valuation is to create a list of rental properties similar to your home. If this method is used, the appraiser compares the amount of money the home earns in the rental market is compared with the revenue of other rentals to arrive at the homes valuation.


By combining all of the collected data your appraiser can provide you with the estimated value of your property in hopes that you can eliminate your PMI. Your financials institution will use this valuable information and weigh it with information they possess to make a determination. At the end of the process, your Appraising Group professional promises that the value they estimate for your home is fair and balanced.