How a Home Appraisal Is Different From a Home Inspection

Even friends of mine get this wrong. I’ll get a call: “Hey, we’re buying a house — can you be our inspector?”

Come on, Bill?! We’ve known each other for 15 years. I’m not a home inspector. I’m an appraiser!

These two services exist for completely different purposes. A home inspection is designed to protect a buyer from purchasing a broken house. An appraisal is designed to determine what a typical buyer would pay for a home in its current condition at a specific point in time.

A home inspection focuses on finding problems. The inspection itself is the feature. Home inspectors are trained to be thorough — testing systems, opening panels, examining components, and looking for deficiencies or safety concerns. Their time on site is usually longer, and the report that follows is designed to organize and prioritize what they find.

An appraisal inspection focuses on gathering data. When I’m at a property, I’m on a fact-finding mission, collecting information that later translates into market value through analysis of comparable sales. I’m essentially collecting three big buckets of data: size, quality, and condition.

One of the most important data points is size, which is why I measure every house myself rather than relying on public records. Beyond size, I’m observing the quality of the home — the materials and features used throughout. That might mean vinyl flooring versus hand-scraped white oak, builder-grade cabinetry versus custom cabinetry, laminate countertops versus stone, or basic appliance packages versus upgraded ones. Condition matters just as much. Finishes wear over time. Carpet can be stained or pet-damaged. Higher-quality materials can be worn or simply dated. Those details matter because buyers react to them, and the market reflects that reaction.

The visit itself is an important step, but it represents only a portion of the overall appraisal process — typically around 15% of my total workload. The visit gives me the raw facts. The rest of the work happens afterward at my desk, where I research comparable sales, verify data, analyze how buyers have paid for differences in size, quality, and condition, and then develop a supported value conclusion.

That difference in focus is why an appraisal inspection isn’t meant to replace a home inspection. I document what I can observe and account for how it affects market value, but I’m not testing systems or evaluating a home for defects the way a licensed home inspector does. A home inspection answers “what’s wrong?” An appraisal answers “what’s it worth in today’s market?”

How to Be Helpful During an Appraisal (and What Isn’t)

Most people who hire an appraiser have a value in mind. Often, they’re hoping the number comes in higher. In some situations — especially divorce or estate work — someone may even prefer a lower number. That’s normal. My job, however, is to stay thoughtful and independent and analyze what the market would most probably pay based on the property and the data.

Here are a few simple ways you can be helpful during an appraisal, and one thing I’d ask you to avoid.

1. Let me complete my walkthrough first

At the beginning of the visit, the most helpful thing you can do is give me space to work through the home methodically. I move slowly and systematically so I don’t miss details I need to document. If I’m interrupted or redirected mid-walkthrough, it’s easier for something important to get missed.

Once I’m finished, I’m happy to talk, answer questions, and hear anything you think I should know.

2. Tell me what I can’t see

I don’t have X-ray vision. If you’re aware of issues that might not be obvious during a walkthrough — substandard wiring, a failing roof, a leak, or a soft or spongy floor in an area I didn’t step on — please tell me. In a real-world sale, those kinds of issues are often disclosed or discovered by a buyer’s inspector, and they can affect how buyers view the property.

The same goes for improvements that aren’t obvious. Work done behind the walls — re-piping, re-wiring, added insulation, or major system updates — may not be visible during the visit, but it can still matter to buyers. I want to know about it.

3. If you can, write it down

The best-case scenario for me is a simple written list I can take back to my desk. If you can jot down improvements made over the past five to ten years (and roughly when they were done), along with any known repairs or deficiencies, that’s ideal. If you don’t have a list, that’s okay — a conversation at the end is still helpful. Written notes just make it easier for me to reference everything later.

One thing I’d ask you not to do

What doesn’t help is pushing for a specific value outcome. I can’t “aim high,” “come in low,” or work toward a number someone wants. My independence isn’t just a preference — it’s a requirement of my license and professional standards. My role is to remain impartial and use my judgment about how the market would react to what’s actually there.

Here’s a real example from last year. I was doing a divorce appraisal, and one party pointed out that the exterior vinyl windows on the south-facing side of the home had been painted black. Vinyl can’t tolerate the heat that builds up from dark paint, and those windows were failing. Once it was mentioned, I could verify it, take a closer look, and then decide how a buyer would likely react. In that case, it was relevant, and I had to reconcile the issue with the cost to cure.

Here’s another example from a divorce appraisal about two years ago. One party was convinced the home needed more than $70,000 in repairs because it had LP siding, which can have a reputation for premature failure. In that case, I already had comparable sales in my report from the same neighborhood with the same siding in similar condition. When I reviewed those sales, it didn’t appear that the market was applying any measurable discount for the siding in that condition. In plain terms, those homes still sold — there were buyers for homes with that siding in that condition — and the market evidence didn’t support treating it like a $70,000 deficiency.

That’s really the point. If you bring factual information — whether it’s positive or negative — I can consider it, verify it when possible, and then use market data to determine how much it actually matters. The best practice is to share what you know. I’m going to work hard to identify how the market would respond, but information is always helpful. After all, who knows your house better than you?

What to Expect During an Appraisal Inspection

If you only see one part of an appraisal, it’s the visit to the property — and that’s the part that tends to make people wonder what the appraiser is looking for. In reality, the site visit is just the tip of the iceberg. It’s a short, focused step where I collect accurate information so the analysis that happens afterward is grounded in what the home actually is.

Most appraisal visits are straightforward. When I arrive, I’m there to observe the property and collect data — things like overall condition, how the home has been cared for, the quality of materials and finishes, and whether there appears to be any deferred maintenance. I don’t know what the value of the home will be when I show up, and I’m not trying to form a value conclusion on site. The goal of the visit is simply to gather accurate information so the later market analysis is based on a clear understanding of the property.

As part of the process, I measure the entire house. I follow consistent measurement standards because size is one of the most important factors in an appraisal. Value is influenced by many features — condition, quality, layout, bedroom and bathroom count, garage configuration, and sometimes style — but size is foundational, so every property is measured consistently.

After measuring, I’ll walk through the interior. I try to be slow and systematic so I don’t miss important details. I typically take at least one photo of each room I observe. Depending on the property, I may also photograph mechanical systems (like the furnace or water heater), examples of higher-quality or custom finishes, and any visible deferred maintenance. These photos help document what was observed during the visit.

For most homes, the on-site portion takes less than an hour. We usually suggest carving out about an hour to be safe. Simpler homes may take closer to 30 minutes, while more complex properties — acreage, multiple outbuildings, or unique features — can take longer.

It’s also important to understand that an appraisal inspection is not a home inspection. Many appraisers, myself included, describe this part of the process as observations. I’m not testing every system, verifying code compliance, or creating a repair checklist. A home inspection is a different service performed by a licensed home inspector for a different purpose.

If you’d like to be helpful during the visit, the best approach is to let the appraiser walk through methodically so nothing important is missed. When I’m done, I’m happy to answer questions. That’s also a great time to share information that might not be obvious — improvements you’ve made that aren’t readily visible, or issues you’re aware of that I may not have noticed. Both can be helpful and contribute to a more accurate understanding of the property.

How Much Does a Garage Add to Home Value in Tacoma?

Ask an appraiser how much it’s worth, and you’ll likely hear “it depends.” That’s not an attempt to dodge the question. It’s an honest response. I’m a residential appraiser based in Tacoma’s North End, serving Kitsap, Thurston, Pierce, and southern King Counties. Across these sub-markets, I commonly see garage contribution in the $7,000–$17,000 range, with occasional cases above that when utility is enhanced by external factors (for example, Frederickson). 

North End vs. Central Tacoma: Same Homes, Different Land Values

Consider two adjacent Tacoma neighborhoods: the North End and Central Tacoma. On paper, the housing stock is broadly similar in age, size, and condition; they’re separated primarily by Sixth Avenue. Repeated calculations show North End homes selling about 17% higher than otherwise similar homes in Central Tacoma—typically between 16–19%, depending on the type of home. Why is there a price difference? Location. It’s the land. The actual structures do not cost any more to build on either side. And, strangely, in both of these markets, garages are small, in disrepair, and sometimes inadequate to house modern vehicles. In practice, I often reconcile around $9,000 for garage contribution in either of these neighborhoods. That makes sense. They are old, they’ve depreciated, and they may be halfway done with their economic life.

Graham and South Hill: Newer Tracts and Three-Bay Norms

Now, contrast those neighborhoods with Graham and South Hill, where tract housing is abundant and most of the housing stock is newer. Three-bay garages are common in Most Graham developments. Ongoing new construction demonstrates that builders have identified demand and buyers are willing to purchase it. Although the same house would typically be worth less in Graham and South Hill than in Tacoma (the land itself is less valuable), garage contribution is often higher because the garages are newer and demand is stronger. In these neighborhoods, I frequently reconcile a garage contribution of about $12,000 using the cost approach (the cost to build new, depreciated by age). This approach reconciles comparable sales very well.

When Cost and Contribution Diverge (Superadequacy)

In reality, the cost approach isn’t the only way to value a home, and buyers don’t sit down to do depreciated-cost math. Market participants value the first thing more than the second, third, or fourth; the contributory value of the same feature typically diminishes. Think about bathrooms: the first is valued far more than the second. Over time, the cost approach breaks down because cost and contribution diverge. If the home is not typical of the area, the cost approach can be a poor way to establish value, and as an appraiser exercising good judgment, I would consider other methods to identify value.

Take a custom ten-car garage in a suburban Graham neighborhood where three bays are typical. The market will likely value three bays, might recognize a fourth or a fifth, and then stop—additional capacity is no longer priced in. In appraisal terms, this is called a “superadequacy.” Just because you can build it does not mean you’ve created value.

Frederickson Case Study: Industrial Proximity and Oversized Garages

Of course, there are many methods an appraiser can use—paired sales, adjusted paired sales, grouped sales, adjusted grouped sales, sensitivity analysis, and, where the dataset supports it, neighborhood-level modeling. Sometimes the cost approach is not the best. Especially when the subject or market is unique. For example: 

In Frederickson, a large light-industrial district with fulfillment centers and manufacturing anchors the area. Surrounding this district are several tract developments. A distinct submarket has emerged because of proximity to light-industrial work, and it behaves differently from tract homes in Graham, South Hill, and even other tracts within Frederickson. Homes on larger lots—about 0.5–1.0 acre—situated very conveniently, sometimes across the street from these facilities, show higher garage contribution because buyers can run a complementary business from an oversized or multiple-bay garage with machinery. This effect is highly location-specific to Frederickson’s industrial base; in these cases, the contributory value of a garage can be as high as $24,000—roughly twice the indication in nearby tract homes and more than the cost to build new.  And in this submarket, the cutoff for superadequacy is much, much higher.

I haven’t even touched things like, garages with shop space, machinery, extra tall bays, or garages with no doors. So, how much is your garage worth?  It depends.  Maybe you should ask an appraiser?

Selling a Home? Don’t Wing it on Price

Let Cornerstone give you the data and insights to make every step smoother—from listing to close.

Who Benefits from a Pre-Listing Appraisal?

🔹 For Sale By Owner (FSBO)
Going solo? Then getting the price right is critical. Sure, you could check Zillow or Redfin... but those estimates can miss the mark—by tens of thousands. A professional appraisal removes the guesswork and gives you the confidence to list competitively from day one.

🔹 Real Estate Agents
Many top-performing agents turn to us when pricing is uncertain or comparable sales are limited. For some, ordering a pre-listing appraisal is part of fulfilling their fiduciary duty—ensuring their pricing strategy is grounded in objective, accurate data.

🔹 Families Managing an Inherited Property
Inherited a property and planning to sell? A pre-listing appraisal gives clarity, especially if you’re coordinating with siblings or planning an estate. It’s a smart way to set expectations early.

What’s Included in a Cornerstone Pre-Listing Appraisal?

📈 Market Analysis That Goes Beyond Comps
We don’t just pull a few recent sales and call it a day. We analyze submarkets, neighborhood nuances, and buyer sentiment—because even homes on the same block can move in different directions.  When you know the direction of your market, you can make better decisions.

📏 ANSI-Compliant Square Footage
Square footage mistakes cost sellers money. How often are public records wrong?  A lot. Yes, we’ve seen square footage errors that left over $40,000 on the table for the sellers, because the assessor’s numbers are wrong. Our measurements follow national ANSI standards, ensuring precision and accurate information.

🔧 Property Condition Insights for Financing
Different loan types (Conventional, FHA, VA) come with their own sets of property requirements. During our pre-listing appraisal, we flag common issues that could delay—or even derail—a sale. This is especially valuable if you’re considering offers with FHA or VA financing. Accepting an FHA offer before your home is FHA-ready can lead to costly delays, unexpected repair requests, or even a canceled deal. We help you get ahead of those issues before your home ever hits the market.

Bonus: We Work for You—Not the Bank

Your appraisal is confidential. You can ask questions, share it (or not), and even bring us into conversations with your listing agent if you’d like. It’s your tool to price smarter, prep better, and close with confidence.

And when you do get an offer? If it aligns with your appraisal, great—pass it on to the buyer’s appraiser. If the offer is above your pre-listing appraisal? Well, then you might owe your agent a beer for a job well-done!

Contact Us for a quote. A few hundred dollars can save you tens of thousands.

FHA Inspection Checklist

FHA assignments comprise approximately half of my workload.   I do a lot of these. Hundreds a year.  Several of you have asked me to write down the basics for property standards.  To be clear: No FHA appraiser is a property inspector.  We only deal with apparent (obvious) deficiencies, and ask for inspections when an expert is needed. If you click on this link if you want access to the actual 4000.1 Handbook. This is definitely not a complete list.

Here’s the basics: HUD is primarily interested in whether the property is Safe, Secure, and Sound; so that buyers are not unreasonably burdened with expenses related to their home. “Safe” refers to the property and the likelihood someone may be injured in the typical use of the home and property. “Secure” refers to the ability to secure the property to prevent theft and break in.  “Sound” refers to the physical deterioration of the property, and whether it is suitably protected from aging. It’s important to note also that these standards exist even when the improvement contributes no value to the property.  A dilapidated barn that will collapse within the next 2 years probably does not contribute any value. But it will still injure a person.  Property standards for FHA are not only about collateral (the value of the assets).  I cannot, on an FHA assignment say “I can ignore that because I’m not valuing it.”

The FHA handbook is specific in some things, while it leaves a good amount of discretion and judgment to determine Safety, Security, and Soundness.  So - no appraiser can give you an exhaustive list of what things may get identified for repair. But, in the spirit of being helpful - here’s how I typically walk a property and what I look for:

On the exterior - 1. Roof, 2. Gutters, 3. Siding, 4. Paint, 5. Railing, 6. Exposed electrical.

I walk the property and look for the roof condition (HUD specifies there must be a minimum 2-year remaining economic life).  If the roof looks worn, damaged, or significantly mossy, I will likely call for a roof certification to ensure that the roof is compliant with this standard.  Gutters and Downspouts are not required, but if they are present, they must be in working order - disconnected downspouts and gutters pulling away from the roof are common issues.  This is a “soundness” issue in the Pacific Northwest, as water that is incorrectly directed away from the home can create larger problems for the siding and foundation.  

Exterior siding needs to be installed correctly and completely.  Missing or broken siding must be repaired. Warped, cracked, and chipped vinyl siding must be repaired.  Failing paint on the exterior of the home must be repaired.  Flaking, chipping, spalling, or any type of paint failure is directly called out in the handbook.  Now, some exterior wood does not require paint (some cedar shake, pressure-treated wood, etc.).  However, if a pressure-treated deck was previously painted and is now flaking off, the failing paint must be scraped and it must be repainted. (very common with decks and porches) *If the home was built before 1978, HUD instructs appraisers to treat failing paint on the exterior (and interior) as though it may contain lead. In this case, paint flakes on the ground are a health hazard. and paint removal/repair must not result in paint chips on the ground.

Decks and stairs are not specifically identified in the handbook. However, building codes are largely uniform in what they consider safe and unsafe. Most of the mortgage industry defaults to these standards.  For deck height - it’s 2 ½ feet (30 inches).  Measure the biggest drop from the deck/patio. If the drop exceeds 30 inches, it needs a guardrail to prevent someone from falling.  If a stairwell has 4 or more steps, there must be a handrail.  Please note: there are many lenders and some local codes that require a handrail at 3 steps. A handrail assists someone going up and down the stairs. Only one side is necessary.

Any exterior outlets with bare wires hanging out?  Cap them.

Appraisers are expected to poke their heads into the crawlspace and attic, if accessible. Before the appraiser shows up, please clear out the space to give me access.  If the crawlspace is screwed shut, please unfasten the screws.  

In the attic - 1. Rodents, 2. Insulation, 3. Ventilation, 4. Mold, 5. Active leaks. 

Rodents. If there are rodent droppings, does it smell?  If it does, there’s likely an active infestation that needs to be remediated.  Is there insulation?  Is it sufficient to be accepted by the market?  3. Ventilation. Can I see daylight from the vents?  Is the air excessively moist? (bathroom fans sometimes vent into attics, causing problems) does it smell? 4. Mold.  Is there black staining on the plywood roof decking? 5. Active leak.  Is there any staining or efflorescence associated with water intrusion?  Any of these will likely result in a call for a professional inspection. If the professional finds a problem, remediation.

In the crawlspace - 1. Rodents, 2. Insulation, 3. Standing water/moisture, 4. Debris, 5. Sufficient height.

Rodents. In a crawlspace evidence of infestation involves a combination of droppings, smell, and destroyed insulation.  Rodents use insulation as nesting.  Any combination of these may be an indication of rodent infestation.  Crawlspaces are to be sealed up/secured to prevent infestation. (are crawlspace openings screened off to prevent rodent access?  Does the exterior hatch seal up to prevent rodents?  2. Insulation. Is there sufficient insulation for market expectations?  Has it fallen down and become debris? 3. Standing water/moisture. Standing water in a crawlspace must be corrected regardless of how it entered. Vapor barriers are not necessary, but they may play a role in decreasing crawlspace moisture. 4. Debris. Crawlspaces must be clear of debris.  If insulation is all over the ground, a contractor stashes rubble or construction supplies in the crawlspace, it must get cleared out. 5. HUD used to require 18” minimum clearance in a crawlspace explicitly. This has been modified to say “sufficient height for access.”  The idea here is that future repairs on an inadequate crawlspace would adversely impact homeowners with additional repair costs.   Any deficient crawlspace conditions can result in a professional inspection or a call to repair.

On the Interior - 1. All appliances, 2. Heating/cooling, 3. Lights, 4. Mold, 5. Electrical, 6. Utilities.

When I move to the interior, I am systematic in how I walk through. I operate the garage door opener and measure the garage. Did the garage door opener work? HUD requires that all appliances included in the transaction must function.

I walk into every bedroom.  Turn on the light. Turn on the heater (if it’s an electric wall/baseboard), and look for exposed electrical (outlet and light switch covers).  In each bathroom, I turn on the lights, the exhaust fan, the sink faucets, and the shower, then flush the toilets while every faucet is on. Testing every fixture, and stress testing the water pressure. The lights must work. The fan must work. The sink, shower, and toilet must work. (have at least one functional light bulb in each light, I will be checking)  If an exhaust fan does not work, it must be repaired. (If an exhaust fan does not exist in the bathroom, it is acceptable unless there is evidence that its absence is a health/safety issue). Low or no water pressure must be remedied. HUD requires sufficient water pressure to be accepted by the market. 

In the kitchen, I confirm that all utilities are on and functioning.  If water, electricity, or gas are turned off, it will require a reinspect. I also check every appliance in the kitchen. If appliances do not function, they must be repaired, replaced, or removed.  Refrigerator, dishwasher, microwave, garbage disposal, stove/range, hood vent.  Gas fireplaces, if present.  Hot water, heating, and cooling take time to check - as I let the tap run for a while to determine that the water heater is working. Heating and cooling cycles are confirmed by feeling the air through the vents.

Smoke, CO, Water Heater straps.  These are the bane of my existence.  FHA says nothing about these. In Washington State, they are all required to be present by law.  The legislators have determined that homes without these features are not safe.  Since HUD broadly identifies that homes must be safe, secure, and sound, I have a difficult time defending the absence of these features in the presence of clear legal safety regulations.  For me, these are required for my FHA assignments.

Safety, Security, and Soundness are broad-sweeping ideas that require judgment to a certain degree.  Is there glass and piles of debris all over the property (safety)? Do the doors or windows of the home prevent safely exiting in an emergency (safety/egress)?  Do they have no door locks at all (security)?  Does the fencing or shed look like it could collapse on someone (safety/soundness)?  

Also outbuildings.  Is there a stick-built shed with peeling paint, a weathered door, bare wood, or a leaking roof?  HUD 4000.1 handbook says that minimum property requirements are applied to the primary dwelling and all additional structures.  Sheds, detached shops, garages, and ADUs are all required to meet these standards. 

Agents - best of luck on your deals!  I hope this helps to better navigate listings with your clients.  When you’re better informed, they’re better informed!

Hope to see you on a deal sometime soon!