I'm surprised how often I'm asked what actually goes into a property appraisal. Of course it depends on the type of property and purpose of the appraisal. Property valuation strategies may be different, but the overall process is the same: 

1. Appraiser's Property Inspection: The first and most essential step in appraisal is the home or property inspection. This should take 15 minutes to 1 hour depending on the type of the house, floor plan, size, features and conditions. Do not rely on supposedly “appraisal experts” that give appraisals without seeing and inspecting the property first. Proper appraisal is impossible without actual property examination.  
 
2. Research: There are two approaches in examining the value of a home or property: 

• The Cost Approach calculates how much it will cost if the house will be constructed now, noting labor cost and the price of the same materials, then add the projected price of the vacant lot today, and deduct all depreciation factors.
  
• The Sales Comparison Approach assesses the value of a home or property based on the market trends. With consideration for factors such as location, amenities, conditions, renovations, the appraisal will be based on the prices of similar properties being sold in the market recently.

 3. Final Estimate: Based on the two research methods, the final estimate is based on the approach that is backed up by significant market data and statistics and the one that suits the property best. By and away, this is the sales comparison approach for most single family dwellings.

4. Your Report: An appraiser produces the report that details the results and contains the following:

• Assessed value
• Effective date of the appraisal
• Certification and signature
• Purpose of the appraisal
• Qualifying conditions
• State of the neighborhood
• Identification of the property and its ownership
• Data interpretation including assumptions made
• Other supporting materials such as maps, plans, charts, photographs, etc.