Whether you're a homeowner preparing for a refinance or a Realtor working with a client, real estate appraisals can seem like a mystery. Below are the 10 most common questions appraisers get asked—along with honest, straightforward answers to help you navigate the process with confidence.
No. The appraisal report is confidential and intended solely for the client—typically the lender or the person who ordered the report. It is not shared with the county tax office or any outside parties unless the client provides explicit permission.
Not directly. While we analyze price per square foot for both the subject property and comparable sales, it’s not the driving factor in valuation. Price per square foot includes much more than just the home’s size—it reflects lot value, pools, accessory units, basements, and other features.
In neighborhoods with diverse property types—like lakefront homes or homes on large acreage—price per square foot can be highly misleading. It’s only more relevant in cookie-cutter subdivisions where homes are nearly identical.
The key factors include:
Square footage
Quality of construction
Condition of the home
Site/lot value
And of course, location
Upgrades and updates can significantly boost value—as long as you don’t over-improve beyond what’s typical for the neighborhood.
Appraisers follow the principle of substitution—we ask: What would a buyer choose instead if this home weren’t available?
We review recent sales in the same or similar neighborhoods and make adjustments for differences. Ideal comps are those needing the fewest adjustments. We also “bracket” the subject’s features by choosing both superior and inferior properties in terms of price, size, condition, etc.
Yes—most of the time. However, how much value depends on the market. We compare similar homes with and without pools to determine what buyers are willing to pay for that feature.
A pool in disrepair may detract from value as it must be repaired. One that far exceeds others in the neighborhood may not get the value expected. Keep in mind, cost does not always equal value—a $100K pool doesn’t automatically increase the appraisal by $100K.
Absolutely not! An appraisal determines market value, while a home inspection evaluates the physical condition of the property’s systems (plumbing, electrical, HVAC, roof, etc.).
Appraisers assume systems are operational unless there's visible evidence to the contrary. For peace of mind, always get a home inspection in addition to an appraisal.
No. The methodology is the same regardless of purpose—whether it’s for a refinance, sale, divorce, or estate planning.
The only exception might be if we're specifically asked to determine a quick-sale or liquidation value, which is often lower due to shorter marketing time.
Yes, but with a caveat. Basement space—if any part of it is below grade (which is common)—is not included in the main Gross Living Area (GLA). Instead, it’s valued separately, usually at a lower rate, based on what the market typically pays for finished basements in your area.
Yes—with some guidelines. We welcome input, but please don’t follow the appraiser throughout the home. It can be distracting and may cause us to miss important details.
Instead:
Be available to answer questions after the walkthrough
Provide a “brag sheet” with upgrades, remodel dates, and costs
Realtors can share comparables—but remember, not all will be used unless they align with true market data
Not necessarily. Appraisers don’t "rubber-stamp" the contract price. The value must be supported by market data, not emotion or competition.
For example, during the post-pandemic housing frenzy, many buyers paid over market value due to bidding wars. On the flip side, some homes are underpriced intentionally.
The Appraiser’s job is to provide an independent, well-supported market value—even if it differs from the agreed-upon price.
Appraisers play a critical role in the real estate process, providing an unbiased, data-driven opinion of value. Understanding our approach—and why we do what we do helps make the process smoother and more transparent for everyone involved. Please contact us if you have more questions and for all your Appraisal needs. We are always here to help you.
Landmark Legal Victory for the Appraisal Profession: Judge Dismisses Bias Lawsuit
The Appraisal industry has scored a significant legal victory in a recent court case involving allegations of bias. A judge has officially dismissed a lawsuit filed by a homeowner who claimed racial bias influenced the appraised value of their property. You can view the full case details and the judge’s ruling [Link to Case].
While the dismissal is a step forward for the profession, the damage to the individual Appraiser’s reputation has already been done. However, this ruling sets a powerful legal precedent that protects appraisers from unfounded accusations when a homeowner simply disagrees with the valuation. The Appraiser involved now has the right to countersue for defamation—whether he chooses to do so remains to be seen.
For years, the appraisal profession has been under fire with allegations of bias and racism. While there have been settlements without admissions of guilt, no lawsuit has successfully proven that racial bias influenced an appraised value.
It's important to understand one crucial point: Appraisers have no motive to apply bias—it is both unethical and illegal. Unlike others in a real estate transaction, Appraisers do not benefit financially from the outcome of a sale or the closing of a loan. Our sole responsibility is to deliver an objective, well-supported valuation. We serve as gatekeepers for lenders, ensuring that loans are backed by adequate collateral. For private clients, we help protect against overpaying for a property.
No Appraiser is willing to risk their license—or their career—by engaging in bias. The appraisal fee is simply not worth that risk.
We hope this landmark ruling will encourage homeowners to pause before filing lawsuits based on dissatisfaction alone. With this precedent in place, we anticipate a decline in frivolous claims and a renewed respect for the integrity of professional Appraisers.
How the Trump Administration May Impact the Real Estate Appraisal Profession
With President Trump’s first 100 days back in office behind us, it's a good time to take stock of how current federal policy changes are shaping the real estate appraisal industry.
This is not a political post. This is a factual update that may affect buyers, sellers, Realtors®, and appraisers alike.
Appraisers are under increased scrutiny. In the past 5 years, allegations of bias in the valuation of minority-owned homes have become a major national focus. No proven cases of appraiser racism in court.
Despite several lawsuits, not one case has resulted in a legal finding of appraiser misconduct related to bias. WE EXPECT LAWSUITS TO DECLINE MOVING FORWARD. SOME APPRAISERS ARE ALSO FILING COUNTERSUITS FOR DEFAMATION.
Federal rollback of bias initiatives. The Trump administration has:
Disbanded the PAVE Task Force
Rescinded HUD appraisal bias protections
Issued executive orders rolling back DEI programs across agencies
Yes, some minority neighborhoods are valued lower—but this is based on market demand, not appraiser prejudice.
Property values are shaped by:
School quality
Crime statistics
Proximity to jobs and amenities
Property condition and location
Appraisers don’t set values—we reflect the market. We are independent, neutral parties with no stake in the transaction.
As federal priorities shift, it’s more important than ever to educate the public on how valuation works and protect the integrity of the profession.
When you obtain a loan, the lender may send a PDC (property data collector) to your home. DO NOT assume this person is an Appraiser. Ask for their license and if they are not a licensed Appraiser, who must follow strict guidelines, laws and are vetted via a background check, require your lender to send an Appraiser to your property. PDC's do not have these same requirements or background checks. YOU HAVE THE RIGHT TO REQUEST THAT A FULL APPRAISAL BE COMPLETED ON YOUR HOME BY A LICENSED OR CERTIFIED APPRAISER, OTHERWISE YOUR INVESTMENT COULD BE AT RISK. Property data collectors and hybrid appraisals are emerging trends in the real estate appraisal process, but they can create challenges when it comes to accurately valuing a property. Property data collectors are individuals or companies that gather basic property data, such as photos, measurements, and other relevant information, without conducting a full appraisal. These collectors often rely on technology, such as smartphones and specialized software, to quickly gather details. While this can speed up the process, it can also lead to incomplete or inaccurate data, which may result in a misrepresented property value. The lack of in-person inspections or deeper assessments can overlook unique factors that significantly influence a property's worth.
Hybrid appraisals, on the other hand, combine traditional appraisals with remote data collection. Typically, an appraiser will rely on a property data collector to gather initial data and then conduct a virtual or desk review to finalize the appraisal. While hybrid appraisals can be more cost-effective and quicker than traditional full inspections, they introduce a risk of overlooking important subjective factors, such as the property's condition, neighborhood trends, or unobservable structural issues. These issues may lead to a less accurate valuation. Furthermore, the reliance on technology can create discrepancies if the data collected is incomplete, outdated, or not contextually interpreted correctly. As a result, both property data collectors and hybrid appraisals can pose significant problems in ensuring that property valuations are precise and reflective of the true market value.
Pendley & Pendley Appraisers has successfully acquired Lanier Appraisal Service marking a niche based expansion for the Company into the Lake Lanier Market. This acquisition allows Pendley & Pendley to enhance its service offerings and broaden its market reach, leveraging the established reputation and expertise of Lanier Appraisal Service. The Company is known for its dedication to quality and accuracy in real estate valuations, has served clients in the North Georgia and Lake Lanier Market for over 30 years. This made the aquisition an ideal fit for Pendley & Pendley’s growth strategy. Lanier Appraisal Service's founder Mary Thompson, chose Pendley & Pendley due to their years of Lake Lanier Appraisal Experience as well as Commercial Property Appraisal Expertise to carry the name of Lanier Appraisal Service into the future.
The leadership teams from both Companies have emphasized their commitment to maintaining the high standards and personalized service that clients have come to expect, while also integrating the advanced technology and operational efficiencies into Pendley & Pendley Appraisal firm. This acquisition positions Pendley & Pendley Appraisers for continued success and growth in the competitive Real Estate Appraisal industry. Thanks for stopping by our Blog page.