The process of an appraisal begins with a thorough inspection of both the inside and the outside of a given home. What the appraiser will do is look for anything that adds value to the home, as well as anything that reduces the homes value. The appraiser is completely independent and does not have anything to gain or lose based on the amount he or she comes up with, so they can generally be trusted to give a fair appraisal of a property.
There are a number of important aspects of the home that will lead to an amount being higher or lower than expected, such as the square footage of actual living area, the condition of the home, and how well the home is constructed. The location, floor plan, number of bedrooms, and the size of the yard are also factors. Also noted are any additional features like air conditioning, special landscaping, a fireplace, a patio, and any renovations that have made the home nicer. The homeowner must make sure that the appraiser is aware of all of these new additions, so that they are sure to be recognized.
Finally, the appraiser will also give an appraisal of the neighborhood. An area that has a high crime rate will lower the value of the property, while being close to shopping or schools will raise the value of a property. Other factors may include the proximity to industrial zones, fire departments, hospitals, or any other areas where there may be a great deal of noise at any given time. All of these things will be included in the report, so you will know exactly why this home was given that particular price.