Frequently Asked QuestionsWhether you are ordering an appraisal for an estate, divorce, pre-listing decision, private transaction, or another purpose, it is common to have questions about the appraisal process. Below are answers to some of the questions Peak Appraising receives about residential appraisal services. What is a real estate appraisal?A real estate appraisal is an independent, professional opinion of a property's value developed by a qualified appraiser. The appraiser analyzes relevant market data along with the property's location, characteristics, condition, and other factors that may influence value. What is the difference between an appraisal and a home inspection?An appraisal and a home inspection serve different purposes. An appraisal focuses primarily on developing an opinion of the property's value. A home inspection is a more detailed evaluation of the property's physical components and systems. An appraisal should not be considered a substitute for a professional home inspection. What is the difference between an appraisal and a Realtor's CMA?A Comparative Market Analysis (CMA) is typically prepared by a real estate agent to assist with pricing or marketing a property. An appraisal is an independent valuation performed by a licensed or certified real estate appraiser in accordance with applicable professional appraisal standards. Both can provide useful market information, but they serve different purposes. My lender offered an appraisal waiver. Can I still have the property appraised?Yes. A lender may determine that an appraisal is not required for its mortgage underwriting purposes, but a buyer may still choose to obtain an independent appraisal for their own use. An appraisal waiver does not provide the buyer with an independent, property-specific opinion of market value from an appraiser. Some buyers choose to obtain a private appraisal when the property is unique, comparable sales are limited, the purchase price is difficult to evaluate, or they simply want additional information about market value before completing the purchase. A private appraisal ordered by the buyer is separate from the lender's mortgage underwriting process and may not be accepted or used by the lender for lending purposes. Private appraisals may be useful for a variety of purposes, including:
The appropriate type of appraisal depends on the intended use and circumstances of the assignment. What is a retrospective appraisal?A retrospective appraisal develops an opinion of value as of a date in the past rather than the current date. Retrospective valuations are commonly requested for estate and date-of-death purposes, divorce matters, tax-related needs, and other situations in which the property's value as of a historical date is relevant. What is a date-of-death appraisal?A date-of-death appraisal is a retrospective appraisal that develops an opinion of a property's market value as of the date of an owner's death. These appraisals may be requested for estate administration, inheritance, tax, accounting, or other professional purposes. Clients should consult with their attorney, accountant, or tax professional regarding their specific requirements and the appropriate effective date. Does a home's assessed value determine its market value?No. A property's tax assessment and its current market value serve different purposes and may not be the same. An appraisal develops an opinion of market value based on the applicable effective date, relevant market data, property characteristics, and the requirements of the specific assignment. Does the amount spent on an improvement equal the amount it adds to a home's value?Not necessarily. The cost of an improvement and its contribution to market value are different concepts. Market reaction to an improvement depends on factors such as the type of improvement, property, location, competing homes, and buyer expectations. Does the appraiser determine value simply by averaging comparable sale prices?No. Developing an opinion of market value involves analyzing the relevance of comparable sales and other market data, considering differences between the properties, evaluating market conditions, and reconciling the available evidence. Comparable sales are not simply averaged to determine the final opinion of value. How long does an appraisal take?Timing depends on the property, assignment type, market data available, and complexity of the appraisal. When you contact Peak Appraising, an estimated completion time will be provided based on the specific assignment. How much does a private appraisal cost?Appraisal fees vary depending on the property, intended use, effective date, complexity, research requirements, and scope of work. Peak Appraising will provide a fee quote after obtaining enough information to understand the assignment. What information should I provide when requesting an appraisal?It is helpful to provide the property address, reason the appraisal is needed, intended use of the appraisal, and any required effective date. Depending on the assignment, additional information may be requested before the appraisal begins. Do you provide appraisals for attorneys, accountants, and other professionals?Yes. Peak Appraising works with individuals as well as attorneys, accountants, estate representatives, Realtors, and other professionals who need independent residential valuation services. What areas does Peak Appraising serve?Peak Appraising is based in Apex, North Carolina and provides residential appraisal services throughout Wake County and surrounding Triangle communities. Availability for assignments outside the immediate area depends on the property location and assignment requirements. Will you tell me what my property is worth before I order the appraisal?A credible opinion of value requires appropriate research and analysis. Peak Appraising does not provide predetermined values or guarantee a particular appraisal result before completing the necessary appraisal process. Can you appraise a property as of a previous date?Yes. Peak Appraising provides retrospective appraisal services when an opinion of value is needed as of a historical effective date. The availability and extent of historical market data will be considered when determining the appropriate scope of work. Common Appraisal TermsComparable Sale (Comp) Effective Date Market Value Gross Living Area (GLA) Adjustment Sales Comparison Approach Retrospective Appraisal Intended Use Intended User Scope of Work |