The Anatomy of An Appraisal: Part 1 — What’s It Worth?
Let’s start with the big question:
What’s it worth?
It’s a question that pops up during some of life’s biggest moments—buying your dream home, settling a divorce, refinancing your mortgage, or dealing with a loved one’s estate. And while your neighbor’s cousin’s guess or a Zillow “Zestimate” might feel satisfying in the moment, if you’re looking for the real answer, you need a professional appraisal.
Thats where we come in.
Why Appraisals Matter
An appraisal is more than just a number on a piece of paper—it’s an unbiased, data-driven opinion of value provided by a trained professional (hi, that’s us at ValuDesk). It ensures that buyers, sellers, lenders, attorneys, and advisors all have a clear understanding of a property’s market value at a specific point in time.
Without a credible appraisal, you’re basically flying blind in a billion-dollar industry. Not a great idea, right?
The Trigger: Why Is an Appraisal Ordered?
There are plenty of scenarios that can trigger an appraisal—and no, it’s not always because someone’s selling a house. Here are some of the usual suspects:
Buying a Home: Lenders need to know if the property is worth what you’re paying for it.
Refinancing: The bank wants to ensure the current value supports your new loan terms.
Divorce: Fair division of assets often requires an impartial valuation.
Estate Planning or Settlement: Executors and heirs rely on appraisals to properly distribute property or calculate taxes.
Tax Disputes: Sometimes the county says your home is worth more than you think. An appraisal can back you up.
Selling (Especially FSBO): Sellers may want a valuation before listing to avoid overpricing or leaving money on the table.
Let’s Talk ‘Intended Use’
Here’s where things get interesting: not all appraisals are created equal. The intended use of an appraisal determines how it’s developed, how it’s written, and even who is allowed to rely on it.
For example:
A lender refinancing your mortgage needs a report that meets specific underwriting guidelines.
An attorney handling a divorce needs a report that can stand up in court.
An executor managing an estate might need a retrospective appraisal—one that reflects what the property was worth on a specific date in the past.
Each of these reports has a different purpose, and that purpose dictates everything from methodology to formatting.
Who Actually Orders the Appraisal?
That depends on the situation. Here’s the breakdown:
Lenders (or the Appraisal Management Companies they work with) usually order appraisals for loans.
Attorneys, accountants, and financial advisors may order appraisals for legal, tax, or planning purposes.
Homeowners and sellers can also order appraisals independently—for peace of mind, pre-listing, or negotiation power.
And yes, even real estate agents sometimes bring us in for an outside opinion when pricing gets tricky.
Why You Can’t Just Reuse an Old Appraisal
Appraisals are not like leftover pizza—they don’t keep well when reused. If you’re thinking, “I had my home appraised last year; can’t I just send that to the court/lender/IRS?”—sorry, no dice.
That appraisal was tailored to a specific intended user and intended use. Using it for something it wasn’t meant for is like trying to use a scuba tank for skydiving. Looks cool. Doesn’t work.
What ValuDesk Brings to the Table
At ValuDesk, we don’t do cookie-cutter reports. Every valuation we deliver is built for the task at hand—whether it’s helping a homeowner make smart decisions or providing airtight support in legal or financial matters.
We combine boots-on-the-ground experience with modern tools, sharp analysis, and a healthy dose of real-world perspective. Our goal? To answer “What’s it worth?” in a way that’s clear, credible, and custom-fit to your needs.
Coming Up Next…
In the following parts of the ValuBlog series, The Anatomy of An Appraisal, we’ll pull back the curtain and show you exactly what happens inside the appraisal process— inspections, comps, adjustments, and all the juicy behind-the-scenes details.
Got Questions?
Thinking about getting an appraisal? Wondering which type of report fits your situation? Let’s talk. Reach out to ValuDesk and we’ll walk you through it!
