What Is a Property Appraisal?

People ask me some version of this question more than almost anything else: what does an appraiser actually do? After 25 years, here's the honest, unglamorous answer — and why it matters whether you're buying a home, settling an estate, or fighting your tax bill.

Why a Property Needs an Independent Value

A property is usually the largest single asset involved in whatever's happening around it — a sale, an estate, a divorce, a tax dispute. Realtors, attorneys, and lenders all play a role in these situations, but none of them are positioned to give an unbiased answer to the one question everyone actually needs answered: what is this property really worth? That's a job for a licensed, independent appraiser — someone with no stake in the outcome either way.

What Happens During the Inspection

It starts with actually seeing the property. I verify what's really there — bedrooms, bathrooms, condition, layout — rather than relying on old records or someone's description. The inspection usually includes a sketch to confirm accurate square footage, and I look specifically for anything that would affect value one way or the other, whether that helps the number or hurts it. An appraisal is only as good as the inspection behind it.

How Value Actually Gets Determined

Once the inspection is done, I use two or three approaches to arrive at a value, depending on the property and the purpose of the appraisal.

The Cost Approach

The most straightforward approach: what would it cost, today, to build a similar property from scratch? That figure often sets a natural ceiling on value — there's rarely a reason to pay more for an existing property than it would cost to build a comparable one new, though location and other factors can shift that.

The Sales Comparison Approach

This is where local knowledge matters most. I track what's actually sold nearby, understand the neighborhoods I work in, and adjust for the differences between the subject property and comparable sales — a fireplace here, an extra bathroom there, square footage, finishes. It's the approach most residential appraisals lean on most heavily.

The Income Approach

For rental and income-producing properties, I may also weigh what the property actually generates in revenue over time, translating that income stream into a present-day value.

Reconciliation — Bringing It All Together

Once every approach has been run, I reconcile them into a single, defensible opinion of value. That number is the most reliable answer available for what the property is worth — though it's worth noting a final sale price can still move up or down from that figure based on negotiation, urgency, or a seller's motivation. The appraisal isn't a prediction of the final sale price; it's the independent benchmark everything else gets measured against.