FAQ Hub
Answers to common questions home appraisers ask every day
Frequently Asked Questions
Understanding the appraisal process for complex riparian and high-value waterfront properties in North Carolina.
What is an appraisal?
What does an appraiser do?
The appraisal process evaluates value through three main approaches: the Cost Approach (replacement cost minus deterioration), the Sales Comparison Approach (comparison with similar recently sold properties), and the Income Approach (value based on potential income).
A key party in finding the cost of a home, an appraiser makes an unbiased opinion on the value of a property used in a real estate transaction. A complete investigation is shown by the appraiser in a report.
Why do I need a home appraisal?
What is the difference between an appraisal and a home inspection?
From mortgage lending and PMI removal to estate settlement, tax appeals, litigation support, and real estate transactions, a professional appraisal provides an accurate, defensible opinion of value when it matters most.
The appraiser is not a home inspector and he or she does not do a full home inspection. An inspection is a third-party evaluation of the accessible structure and systems of a house, from the top to the bottom. The archetypal home inspector's report will contain an evaluation of the condition of the property's heating systems, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and accessible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.
What is the difference between an Appraisal and a Comparative Market Analysis (CMA)?
What is your service area?
A CMA provides an estimated value based on recent sales and market trends, primarily for real estate pricing purposes. An appraisal is a detailed, independent valuation performed by a licensed appraiser using verified market data, property analysis, and professional standards. Unlike a CMA, an appraisal is defensible, unbiased, and accepted by lenders, courts, attorneys, and government agencies.
Mazzaferri Property Services proudly serves New Bern, Craven County, Pamlico County, Onslow County, and surrounding communities throughout the Crystal Coast and Eastern North Carolina. We provide appraisal services for waterfront, luxury, and residential properties across the region.
What does the appraisal report contain?
Each report must reflect a credible estimate of value and must identify the following:
The client and other intended users.
The intended use of the report.
The purpose of the assignment.
The type of value reported and the definition of the value reported.
The effective date of the appraiser's opinions and conclusions.
Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items.
All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.
Division of interest, such as fractional interest, physical segment and partial holding.
The scope of work used to complete the assignment.
Licensing and certification require coursework, tests, and practical experience. After licensure, appraisers must complete continuing education courses to maintain their license.
How are appraisers certified?
Ensure the appraiser has access to all areas of the property and prepare a list of any recent improvements or renovations. Helpful documents may include a survey, floor plan, or other property-related records.
Who do appraisers work for?
Typically, appraisers are employed by lenders to estimate the value of real estate involved in a loan transaction. Appraisers also provide opinions in litigation cases, tax matters and investment decisions.
Where does an appraiser get the information used to estimate value?
How do I get ready for the appraiser?
Gathering data is one of the primary roles of an appraiser. Data can be divided into Specific and General. Specific data is gathered from the home itself. Location, condition, amenities, size and other specific data are gathered by the appraiser during an inspection.
General data is gathered from a number of sources. Local Multiple Listing Services (MLS) provide data on recently sold homes that might be used as comparables. Tax records and other public documents verify actual sales prices in a market. Flood zone data is gathered from FEMA data outlets, such as Metro Appraisals' InterFlood product. And most importantly, the appraiser gathers general data from his or her past experience in creating appraisals for other properties in the same market.
What exactly is PMI and how can I get rid of it?
In most real estate transactions, the appraisal is ordered by the lender, and while the home buyer pays for it, the lender controls its use. The buyer receives a copy included with closing documents but cannot use it for other purposes without permission.
However, if a home owner hires an appraiser directly, they can dictate the appraisal's use, such as for PMI removal or tax planning. If not specified, the owner may use it as needed.
Who Owns the Appraisal Report?
PMI stands for Private Mortgage Insurance. It insures a lender against loss on homes purchased with a down-payment of less than 20%. Once equity in the home reaches 20% you can eliminate the PMI and start saving immediately.
What is "Market Value?"
Market value is the price a property should bring in a fair, open market, with both buyer and seller acting prudently. This involves conditions like motivation, being well-informed, reasonable market exposure, cash payment, and typical consideration for the property sold without special concessions.
Which home renovations add the most to the price?
The answer to this is different depending upon the location of the home. Different markets value amenities differently. Adding a central air conditioner in Houston, Texas may add significant value, while putting one in a home located in Buffalo, New York might not have much impact.
As a rule, the most value returned from renovating a home comes in the kitchen. According to one national survey, kitchen remodels returned an average of 88% of the investment. In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home. Bathrooms were second, returning 85%.
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Providing professional valuation services across Newbern and coastal North Carolina counties with absolute discretion and legal defensibility.
