Question 1

What is a real estate appraisal?

Accepted Answer

A real estate appraisal is an unbiased professional opinion of a property's value. Licensed appraisers analyze comparable sales, property characteristics, location factors, and market conditions to determine the fair market value of a property.

Question 2

How long does an appraisal take?

Accepted Answer

The appraisal process typically takes 7-10 business days from the inspection to the final report delivery. The property inspection itself usually takes 30-60 minutes for a typical residential property, though larger or more complex properties may require more time.

Question 3

How much does an appraisal cost?

Accepted Answer

Appraisal costs vary based on property type, size, location, and complexity. A typical single-family home appraisal in the Bay Area ranges from $500-$800, while luxury properties and more complex assignments may cost more. Contact us for a specific quote for your property.

Question 4

What is the difference between an appraisal and a home inspection?

Accepted Answer

An appraisal determines the market value of a property, while a home inspection evaluates the physical condition and identifies potential issues. Appraisals are required by lenders, while inspections are typically optional and requested by buyers for their own protection.

Question 5

Do I need to be present during the appraisal?

Accepted Answer

Your presence is not required, but you're welcome to be there. If you choose to be present, the appraiser may ask questions about recent improvements, unique features, or property history. Someone with access to all areas of the property should be available.

Question 6

What factors affect my property's appraised value?

Accepted Answer

Key factors include location, property size, condition, age, recent upgrades, comparable sales in the area, market trends, neighborhood amenities, school districts, and unique features or limitations. Bay Area properties are also influenced by proximity to tech hubs and transportation.

Question 7

How should I prepare for an appraisal?

Accepted Answer

Clean and declutter your home, ensure all areas are accessible, compile a list of recent improvements with receipts, make minor repairs if needed, and provide information about unique features. Don't make major renovations specifically for the appraisal, as they may not add proportional value.

Question 8

Can I contest or appeal an appraisal?

Accepted Answer

If you believe the appraisal is inaccurate, you can provide additional comparable sales data or information about property features that may have been overlooked. Your lender can request a reconsideration of value if you present compelling evidence. A second appraisal may also be ordered.

Question 9

What is the difference between appraised value and market value?

Accepted Answer

Appraised value is a professional opinion based on analysis and methodology, while market value is what a buyer is willing to pay and a seller is willing to accept. In most cases, they're very close, but market value can be influenced by unique buyer circumstances or emotional factors.

Question 10

Do renovations always increase my home's value?

Accepted Answer

Not all renovations provide equal returns. Kitchen and bathroom updates typically offer good returns, while highly personalized improvements may not. Over-improving beyond neighborhood standards rarely adds proportional value. Consult with an appraiser before major renovations if value increase is your primary goal.

Question 11

How far back does an appraiser look at comparable sales?

Accepted Answer

Appraisers typically use sales from the past 3-6 months, with preference for more recent sales. In slower markets or unique properties, we may look back up to 12 months. The goal is to use the most recent and relevant data to reflect current market conditions.

Question 12

What is an FHA appraisal?

Accepted Answer

An FHA appraisal is required for loans insured by the Federal Housing Administration. It includes both a valuation and a property condition assessment to ensure the home meets FHA minimum property standards for safety, security, and soundness.

Question 13

Why do lenders require appraisals?

Accepted Answer

Lenders require appraisals to protect their investment by ensuring the loan amount doesn't exceed the property's value. If a borrower defaults, the lender needs to know they can recover their money through property sale. Appraisals also ensure lending practices comply with regulations.

Question 14

Can I use an appraisal from a few months ago?

Accepted Answer

Most lenders require appraisals to be no more than 90-120 days old. In rapidly changing markets like the Bay Area, older appraisals may not reflect current values. If your appraisal has expired, a new appraisal or update may be required.

Question 15

What is a desktop appraisal?

Accepted Answer

A desktop appraisal is completed without an interior inspection, using exterior observations, public records, and comparable sales data. These are faster and less expensive but provide less detailed analysis. They're acceptable for some refinances and low-risk transactions.

Question 16

How do appraisers value luxury or unique properties?

Accepted Answer

Luxury and unique properties require specialized expertise due to limited comparable sales. We analyze high-end finishes, custom features, location prestige, land value, and may use additional valuation approaches. Our experience with Bay Area luxury properties, including $20M+ estates, ensures accurate valuations.

Question 17

What if my appraisal comes in lower than the purchase price?

Accepted Answer

A low appraisal can affect financing, as lenders base loan amounts on the lower of the appraised value or purchase price. Options include renegotiating the price, increasing your down payment, disputing the appraisal with supporting data, or requesting a second appraisal.

Question 18

Do appraisers consider pending or active listings?

Accepted Answer

Appraisers primarily use closed sales data, as these represent actual market transactions. Active listings and pending sales may be considered as supporting data to understand market trends, but they're given less weight than completed sales.

Question 19

Why choose Schumacher Appraisal?

Accepted Answer

With 30+ years of Bay Area expertise, thousands of completed appraisals, active real estate investing experience, and trust from major institutions like Wells Fargo and Goldman Sachs, we provide accurate valuations for properties ranging from sub-$1M homes to $20M+ luxury estates. We offer a custom-tailored approach for each client.

Question 20

What areas do you serve?

Accepted Answer

We serve the entire San Francisco Bay Area, including San Francisco, Peninsula (Atherton, Palo Alto), South Bay (San Jose, Santa Clara), East Bay (Oakland, Berkeley), and North Bay (Marin, Napa). Our local expertise ensures accurate valuations across all Bay Area markets.

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