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Appraisal BasicsApril 15, 2024

What Are the Different Types of Home Appraisals?

Overview of different appraisal types used for residential properties.

By Paul Myers

The main types of home appraisals are standard mortgage appraisals, FHA appraisals, drive-by (exterior-only) appraisals, desktop appraisals, estate/probate appraisals, and divorce appraisals. Each serves a different purpose and follows different standards.

Standard Mortgage Appraisal (FNMA)

Purpose: Lender needs to verify home value for mortgage

Who Orders: Your lender

What It Includes: Complete property inspection, comparable sales analysis, detailed report

Cost: $400-$600

Timeline: 10-14 days

Use: Purchase mortgages, cash-out refinances, equity loans

This is the most common appraisal. When someone says "appraisal," they usually mean this one.

Desktop/Automated Appraisal

Purpose: Quick valuation without on-site inspection

Who Orders: Lender (for specific loan products)

What It Includes: Public records review, MLS analysis, online research

Cost: $250-$400

Timeline: 3-5 days

Use: Rate-and-term refinances, automated lending products

I don't recommend these for major transactions, but some lenders use them.

FHA Appraisal

Purpose: FHA-insured mortgage verification

Who Orders: FHA lender

What It Includes: Standard appraisal plus FHA-specific requirements

Cost: $400-$600

Timeline: 10-14 days

Specialty: FHA appraisers are specially trained and certified for FHA loans

I'm FHA-approved. FHA appraisals require more rigorous documentation than standard appraisals.

VA Appraisal

Purpose: VA home loan verification

Who Orders: VA lender

What It Includes: Standard appraisal plus VA-specific requirements

Cost: $400-$600

Timeline: 10-14 days

Specialty: VA appraisers follow VA-specific standards, more rigorous than conventional

VA appraisals have specific requirements for property condition that are stricter than conventional appraisals.

Divorce Appraisal

Purpose: Fair market value for property settlement

Who Orders: Attorney or divorcing couple

What It Includes: Comprehensive property inspection, detailed comparable analysis, court-ready documentation

Cost: $1,200-$1,500

Timeline: 14-21 days

Specialty: More detailed, defensible for potential court challenges

These require independent, unbiased appraisals that hold up to attorney scrutiny.

Estate/Probate Appraisal

Purpose: Establish property value for estate distribution or tax purposes

Who Orders: Estate executor or attorney

What It Includes: Detailed property analysis, comparable sales, potential stepped-up basis documentation

Cost: $800-$1,500

Timeline: 14-21 days

Specialty: Must establish value at date of death for tax purposes

These are critical for proper estate tax calculation and property distribution.

Charitable Donation Appraisal

Purpose: Establish value for tax deduction

Who Orders: Donor or nonprofit

What It Includes: IRS-compliant documentation, detailed analysis, appraiser declaration

Cost: $1,200-$2,000

Timeline: 14-21 days

Specialty: Must meet IRS requirements for deductibility

These require specific IRS compliance and appraiser qualifications.

Tax Appeal Appraisal

Purpose: Challenge property tax assessment

Who Orders: Property owner

What It Includes: Detailed analysis of assessment vs. market value, comparable sales

Cost: $800-$1,200

Timeline: 10-14 days

Specialty: Must demonstrate assessment is inaccurate relative to market value

These require documenting why the assessor's valuation is wrong.

Investment Property Appraisal

Purpose: Determine value for investment purchase

Who Orders: Investor or investor's lender

What It Includes: Standard appraisal plus income analysis (rent, expenses, cap rate)

Cost: $700-$1,200

Timeline: 10-14 days

Specialty: Includes income-based valuation in addition to sales comparison approach

Investors care about income potential, not just market value.

Refinance Appraisal (Rate-and-Term)

Purpose: Establish current value for non-cash-out refinance

Who Orders: Your lender

What It Includes: Property inspection, comparable sales, standard report

Cost: $400-$600

Timeline: 10-14 days

Specialty: Usually less intensive than purchase appraisals (lender has prior appraisal on file)

These are routine. Lender already knows the property; they just need current value.

Bifurcated Appraisal

Purpose: Divide property value for tax purposes

Who Orders: Property owner (usually for tax planning)

What It Includes: Separate valuations for land and improvements

Cost: $600-$1,000

Timeline: 14-21 days

Specialty: Requires allocating total value between land and buildings

These are complex and require appraisers experienced with cost segregation.

Limited Appraisal

Purpose: Faster valuation for specific lending purpose

Who Orders: Lender (for automated/streamlined products)

What It Includes: Reduced scope compared to full appraisal

Cost: $250-$400

Timeline: 5-10 days

Specialty: Limited inspection or analysis for specific loan products

Not all lenders offer these. Check if your loan qualifies.

Retrospective Appraisal

Purpose: Establish value as of a past date

Who Orders: Attorney or property owner (estate, divorce, tax appeals)

What It Includes: Analysis of market conditions and comparable sales from the past date

Cost: $900-$1,500

Timeline: 21+ days

Specialty: Requires historical market analysis

These are complex because you're valuing "as of" a past date using historical data.

The Common Thread

All appraisals follow the same basic methodology:

  • Property inspection
  • Comparable sales analysis
  • Market analysis
  • Professional opinion of value

The difference is scope, detail level, and intended use.

Which One Do You Need?

Buying with Mortgage: Standard mortgage appraisal Refinancing: Refinance appraisal (or desktop if streamlined) FHA Loan: FHA appraisal VA Loan: VA appraisal Divorce: Divorce appraisal Estate: Probate appraisal Charitable Giving: Charitable appraisal Tax Appeal: Tax appeal appraisal Investment: Investment appraisal

Your situation determines which type you need.

The Bottom Line

There are many appraisal types, each with specific purposes and requirements.

The standard mortgage appraisal is most common. Specialized appraisals are more detailed and defensible for their specific purposes.

Choose the right appraisal type for your situation.

That's how you get accurate, defensible valuations.

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Contact Paul Myers for professional home appraisals throughout Southern California.