What Is a Home Appraisal?
By JC Pacific Corp Published 2026-09-01 Last professionally reviewed: September 2026
A home appraisal is an independent professional opinion of a property's value for a particular purpose and effective date. Mortgage lenders commonly use appraisals to evaluate the property offered as collateral for a loan.
What Does the Appraiser Evaluate?
Depending on the assignment, the appraiser may consider:
- Property location
- Site and lot
- Living area
- Bedrooms and bathrooms
- Age and condition
- Quality of construction
- Improvements
- Comparable sales
- Current market conditions
- View and location influences
- Legal or permitted use information
- Other property-specific characteristics
Is the Appraisal for the Buyer?
The lender generally orders the appraisal for the lending decision. The buyer usually receives a copy under applicable mortgage rules, but the appraisal is not a full property inspection or guarantee.
What Does the Appraisal Not Determine?
It does not necessarily determine:
- What the buyer should personally pay
- Future appreciation
- Complete property condition
- Repair cost
- Title condition
- Insurance eligibility
- Whether the home suits the buyer
- Whether every improvement was permitted
Frequently Asked Questions
Is the appraised value always the market value?
It is an appraiser's supported opinion of value for the specific assignment. Another qualified appraiser or market participant may reach a different conclusion.
Does the appraisal guarantee resale value?
No.
Can a cash buyer order an appraisal?
Yes. A cash buyer may obtain an appraisal or another valuation even without a lender requirement.
An appraisal is an important lending and valuation tool, but it should be reviewed alongside inspections, disclosures, title information and the buyer's financial plan.
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A note on legal advice: These guides provide general, educational information about California real estate practice. They are not legal advice and do not create an attorney-client relationship. Mortgage information is general education, not individualized lending, tax or legal guidance. For advice about your specific offer, contract, closing or financing, consult a qualified California real estate attorney and a qualified mortgage professional.