Most appraisals require the appraiser to inspect both the interior and exterior of the home. This type of appriasal is typically used to get the most accurate value for your home. The appriaser is able to take certain items into account that would not be possible on a drive by appraisal. For example custom cabinets, fireplaces, master bathrooms with a whirlpool tub, and hardwood floors are items that an appriaser could not account for if you just had a drive by evaluation of your home.

There is always the possibility that your appraisal can be inflated. This means the loan officer will ask the appraiser to raise the value over what the house is really worth. The danger to the borrower is you may wind up with a loan more then the house is worth.

There are three basic ways that a property appraiser uses to obtain an opinion of the value. First is the income approach which is used primarily on commercial properties. On residential properties there is the cost approach and the market approach. The cost approach assertains value by how much it would cost to build the home in its present condition. The market approach has to do with how much the house would be worth if it was sold on the open market. For the purposes of a mortgage loan, the most weight is given to the value obtained by the market approach.

There are several types of appraisals, that each have their own forms. A drive by appraisal, is when an appraiser simply drives by your home and gives an estimated value to your property. They will still take photos and find comparables, the advantage is that they are more convenient to you and generally cost less. The drive by appraisal, is the underwriters decision and not yours or your mortgage professionals.

How To Get The Best Appraisal - Clean up, shampoo the carpets, paint, touch up, mow, trim and do all those things that make it look its best.

It is important to ensure that your appraiser understands the markets and trends in your specific area. In a county like Los Angeles County, for instance, an appraiser that is familiar with homes in Stockton would not necessarily be up to speed with homes in Beverly Hills. Therefore, it is wise to make sure your appraiser has done recent work in your neighborhood in order to give the most accurate assessment of your home appraisal. This might not come as any surprise to you, but you would be surprised how often an appraiser tries to specialize in multi markets, becoming a “jack of all trades”, so to speak, but a specialist to none but where they personally reside.

To ensure the best appraised value of your home, make sure that everything is in good working order. The home should be well maintained. Also, if any homes in your area were sold without the assistance of a realtor, the appraiser may be able to use those as "comps".

Although there is very little that will "change" the value of your house, it is important to give an amazing impression. An appraiser who is looking at a house filled with garbage will not get a warm fuzzy feeling. If you take the time to make sure everything is immaculate and welcoming it will not change the value, but it could sway the value a little in your favor.

Make sure you are there to answer any questions the appraiser may have. If you have done any work on your house since you bought it or refinanced last, make sure you let the appraiser know.