Understanding Your Home Appraisal: What to Expect

Thank you for allowing us to inspect your property as part of the appraisal process. To help you understand what an appraisal involves and why certain things are done a specific way, we’ve prepared this summary. Our goal is to provide clarity and reduce any concerns or questions you may have.

Appraisal Report

What Is a Residential Appraisal?

An appraisal is an independent, unbiased estimate of your property’s market value. It is typically required by lenders to ensure the property is worth the amount being borrowed. As appraisers, we follow specific guidelines of the Uniform Standards of Professional Appraisal Practice (USPAP) as well as the North Carolina Appraisal Board to ensure accuracy and fairness.

What You Can Expect from the Appraisal Process

  1. Property Inspection:
    • During the inspection, we take measurements, photographs, and notes about the property’s condition, upgrades, and features.
    • We do not inspect plumbing, electrical systems, or structural integrity, as this is beyond the scope of an appraisal.
  2. Market Analysis:
    • We compare your property to recently sold homes in the area with similar features, size, and condition.
    • Adjustments are made for differences to ensure an accurate value.
  3. Report Preparation:
    • The final report includes detailed information about your property, the comparable sales, and the valuation.

The Qualifications for a Certified Residential Appraiser

To be a Certified Residential Appraiser in the state of North Carolina you must complete the following.

·         The appraiser applicant first must take four courses to become an Appraiser Trainee.

·         The Trainee must work with an Appraiser Supervisor/Mentor for a minimum of 12 months and accumulate 1,500 experience hours.

·         Take a minimum of 200 hours of qualifying appraisal education (minimum 10 classes).

·         Have a minimum of associate’s degree or 30 hours of qualifying college-level courses.

·         Pass the North Carolina Appraiser exam. 

To be a Certified General Appraiser (for commercial properties), the requirements include the above plus additional experience hours, classes, and a college degree.

How Your Home Is Measured and Why

  • Your home is measured using standards set by ANSI (the American National Standards Institute). This ensures consistency and fairness in comparing your property to others.
  • Key Measurement Practices:
    • Finished above-grade areas are included in the total square footage.
    • Measurements are taken from the exterior walls or as close as possible.
    • Interior spaces, such as closets and hallways, are part of the gross living area (GLA).

What Rooms Are Counted as Rooms?

  • Included Rooms: Bedrooms, living rooms, dining rooms, kitchens, and other finished living spaces.
  • Excluded Areas:
    • Bathrooms are not counted as rooms.
    • Closets, utility rooms, and unfinished spaces are excluded from the room count.

Why Basement Areas Are Not Counted as Living Area

  • Basement spaces, even if finished, are typically not included in the above-grade square footage. This is because they are below grade (below ground level) and cannot be directly compared to above-grade living areas.
  • Basement areas are described separately in the appraisal and may still contribute to the home’s value.

Ceiling Height Explained

  • To be included in the gross living area (GLA), a space must have a ceiling height of at least 7 feet.
  • Sloped ceilings (e.g., in attics or bonus rooms) may be included if at least 50% of the space meets the 7-foot height requirement, and no area under 5 feet is counted.

The Appraisal Fee vs. What You Paid

  • Appraiser's Fee: The fee paid to the appraiser covers the time and expertise required to inspect the property, analyze the market, and prepare the report.
  • AMC Fee: Many appraisals are ordered through an Appraisal Management Company (AMC), which may charge additional fees for coordination and administrative tasks. This is separate from the appraiser’s fee.

Common Appraisal Questions from Homeowners

  • Why didn’t you inspect certain areas?
    • Our job is to assess the market value of your home, not to conduct a home inspection or assess mechanical systems.
  • Why wasn’t my finished basement counted in the square footage?
    • Finished basements are valuable, but they are reported separately because they are below-grade spaces.
  • What qualifies as a bedroom?
    • A window for ingress/egress is essential.
    • A closet is not strictly required, particularly in older homes where closets were historically uncommon.
    • The room must be sufficient size to reasonably function as a sleeping space.
      • Typical minimum size: 70 square feet (varies by local code).
      • Ceiling height: At least 7 feet for the majority of the room.

We’re Here to Help

If you have any questions about the appraisal process, feel free to reach out. We value your understanding and cooperation, and we’re committed to providing a fair and accurate appraisal of your home.

Thank you,

Tony R. Green, Certified General Appraiser

Tony R. Green, Certified General Appraiser

NC License # A8096
TKG Appraisals (a division of TKG Enterprises, Inc.)

TonyRGreen.com

TKGEINC.com

We provide appraisal and appraisal review services in NC for residential, commercial properties, land, special use properties, divorce, estate and probate settlement, inherited properties, tax appeal, Medicaid planning, retrospective appraisals, utility easements, conservation easements, and more. Contact us for any of your real estate appraisal needs.