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Georgia Valuation Source

Georgia Valuation Source

Residential Appraisal Experts

Appraisal Basics

What Is a Home Appraisal?

An independent, professional opinion of market value — and the process behind how an appraiser actually arrives at it.

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Appraisal Basics5 min read

A home appraisal is an independent, professional opinion of a property's market value, developed by a state-licensed or certified appraiser. Unlike a rough estimate or a sales pitch, an appraisal follows a structured, standards-based process — and the appraiser has no financial stake in what number the final report shows.

Why an Appraisal Gets Ordered

Appraisals get requested any time someone needs a supportable, independent opinion of value rather than a rough guess — most commonly for one of the following reasons:

Purchase and refinance transactions where a lender needs an independent opinion of value
Estate, probate, and date-of-death valuation for settlement or step-up-in-basis purposes
Divorce and equitable-distribution proceedings
Property tax appeals when an assessment appears to exceed market value
PMI removal requests once a borrower believes sufficient equity has accrued
Pre-listing planning before a home goes on the market

How an Appraiser Arrives at an Opinion of Value

Research

The appraiser reviews public records, recent sales, and neighborhood market trends before ever setting foot on the property.

Inspection

For most assignments, the appraiser inspects the property — measuring, photographing, and documenting condition, layout, and features.

Analysis & Report

The appraiser selects and adjusts comparable sales, reconciles the data, and documents a supportable opinion of value in a formal report.

The result is a documented, defensible opinion — not a guess and not a negotiating position. That's what separates an appraisal from a real estate agent's price opinion or an automated online estimate.

How This Differs From Other "Value" Numbers

Homeowners often encounter several different value figures for the same property — a real estate agent's Comparative Market Analysis (CMA), an automated online estimate, and a county's tax assessment — and it's easy to assume they should all match. They generally don't, and understanding why is useful before you rely on any single number for an important decision.

Appraisal vs. CMAAppraisal vs. Automated EstimateHow Georgia Assessments Work

Frequently Asked Questions

No. A home inspection evaluates a property's physical systems and condition for safety and maintenance purposes. An appraisal focuses on market value and only notes condition issues to the extent they affect that value.

For a purchase or refinance, the lender typically orders the appraisal (even though the borrower usually pays for it) to maintain appraiser independence. For estate, divorce, tax appeal, or private purposes, the individual, attorney, or fiduciary requesting the valuation orders it directly.

Federal appraiser-independence rules generally prevent borrowers and loan officers from selecting or directing the appraiser on lender-ordered assignments. For non-lender purposes — estate, divorce, tax appeal, private use — you're free to select your own appraiser.

Not necessarily — it depends on why you're ordering the appraisal. A homeowner appealing property taxes wants a supportable lower value; a seller wants a supportable value that matches their asking price; a borrower removing PMI wants a value that clears the required loan-to-value threshold. An appraisal's job is accuracy, not a specific outcome.

In a written report (commonly using a standardized form for lender work, or a narrative format for estate, divorce, and litigation assignments) that discloses the property's characteristics, the comparable sales relied upon, the adjustments made, and the appraiser's final reconciled opinion of value.

Continue Learning

Next RecommendedWhat Does an Appraiser Look For?Related TopicAppraisal vs. CMAExplore Preparing for an AppraisalHome Appraisal Preparation Checklist

This information is provided for general educational purposes about the residential appraisal process and is not legal, tax, or financial advice. Specific requirements vary by lender, court, or taxing authority.

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