A client walks into their lender’s office expecting to finalize a home refinance, only to learn the process has hit a wall. The roadblock? A low real estate appraisal — and one they didn’t see coming. It’s a story that’s played out in every state, every month, costing people thousands in unexpected delays, renegotiations, or even outright denials. With over 80% of residential transactions requiring an appraisal before closing, understanding what goes into this process isn’t just helpful. It’s essential.
Whether you’re preparing to sell, managing an estate, or dealing with a legal dispute, a real estate appraisal can have direct financial and legal consequences. Here’s what every property owner needs to know — with guidance grounded in the voice of experience from professionals who’ve done this work for decades.
What Is a Real Estate Appraisal?
A real estate appraisal is a formal, unbiased estimate of a property’s market value provided by a licensed or certified appraiser. The goal is to determine what a willing buyer would reasonably pay and a willing seller would reasonably accept under typical conditions.
Unlike a Zestimate or an informal opinion from a real estate agent, an appraisal uses recognized valuation methods and must meet legal and regulatory standards. It’s not a guess — it’s a defensible opinion backed by methodology, analysis, and data.
Appraisers can use three common methods to determine value:
- Sales Comparison Approach: Compares the subject property to similar recently sold properties (comps).
- Cost Approach: Estimates how much it would cost to replace the property today, minus depreciation, plus land value.
- Income Approach: Primarily used for investment or income-generating properties.
An accurate real estate appraisal can influence loan approval, tax liability, insurance coverage, legal settlements, and sale price. That’s why courts, banks, and government agencies all rely on certified appraisals — not estimates.
When Do You Need a Real Estate Appraisal?
If you own property in New York — or are involved in a transaction or legal matter — chances are you’ll need an appraisal sooner than you think. Here are the most common situations:
Mortgage Lending: Lenders require an appraisal to confirm the property is worth the loan amount. This applies to purchases, refinancing, or home equity lines of credit.
Estate Settlement and Probate: Valuations are necessary to divide property among heirs, establish fair market value for estate taxes, or settle disputes. In New York, this step is often essential in probate court.
Divorce: Appraisals help determine the fair market value of marital property for equitable distribution.
Tax Assessments and Appeals: When local assessments seem inflated, a formal appraisal may help challenge and reduce your property taxes.
Bankruptcy and Foreclosure: Courts and creditors use appraisals to determine real property value in financial proceedings.
Legal Disputes: Appraisals are used in partition lawsuits, eminent domain cases, or disagreements over sale prices.
Federally Related Transactions: Any transaction involving a federally regulated lender mandates an appraisal by a state-licensed or certified appraiser under federal law.
Quick Snapshot: When Appraisals Are Required
| Situation | Required? | Notes |
| Mortgage lending | Yes | Required by most lenders |
| Estate/probate | Often | Needed for taxes, division, or court use |
| Divorce | Often | Court-accepted fair market valuation |
| Tax appeals | Sometimes | Used to challenge assessments |
| Bankruptcy/foreclosure | Yes | Determines asset value in proceedings |
| Legal disputes | Yes | Used in lawsuits involving property |
| Federal transactions | Yes | Legal requirement under Title XI |
For property owners, knowing when to secure an appraisal isn’t just about compliance — it’s often the difference between protecting your investment or letting others define its value for you.
How to Choose a Qualified Real Estate Appraiser
Not all appraisers are equal — and choosing the wrong one can cost you in court, at closing, or with the IRS. So how do you find a qualified, competent, and trustworthy professional?
Start by checking their certification. In New York, appraisers must be licensed or certified by the state to complete federally related transactions. You can verify credentials through the New York State Department of State database.
Next, ask about their experience. Have they worked in your market? Do they specialize in residential, commercial, or mixed-use properties? If you need an appraisal for litigation, estate planning, or tax appeal — find someone whose reports can stand up in those contexts.
Avoid red flags like:
- Vague or inflated promises about the value
- Lack of familiarity with Uniform Standards of Professional Appraisal Practice (USPAP)
- Willingness to accept contingent fees based on the outcome
Choose an appraiser who is objective, certified, and experienced in your type of case. In other words, someone like GAR Appraisal, who has delivered court-ready reports in New York since 1961 and stands behind every number.
What to Expect From the Appraisal Process
The process begins with a request — usually by a lender, attorney, or property owner. The appraiser then starts gathering data to evaluate the property. Here’s a breakdown of what to expect:
Initial Review and Scheduling: The appraiser collects background information, public records, and comparable sales. Then they schedule an on-site inspection.
On-Site Inspection: The appraiser visits the property, examining condition, layout, renovations, and structural integrity. They take photos and measure square footage.
Research and Valuation: The appraiser compares the property to recent sales, adjusts for differences, and may also use the cost or income approach depending on the purpose.
Report Preparation: They produce a written report with photos, maps, valuation data, and a final estimate of value. This report follows strict guidelines, including USPAP and New York State regulations.
Turnaround Time: Most reports are completed within a few business days of the inspection — though complex assignments can take longer.
If your appraisal feels rushed, vague, or missing supporting data — speak up. A credible appraisal should be documented, supported by evidence, and defensible under scrutiny.
Final Thought: Why Real Estate Appraisal Accuracy Matters
Inaccurate appraisals don’t just cause short-term frustration. They lead to denied loans, tax disputes, legal risk, and misinformed financial decisions. An experienced appraiser protects your interests by delivering a valuation that holds up in court, with lenders, and in tax scenarios.
GAR Appraisal has been doing this work for over 60 years. From Buffalo to the Finger Lakes, from residential homes to commercial developments, we’ve helped property owners get the accurate, court-ready valuations they need — without the noise, the guesswork, or the surprises.
If you need a trusted real estate appraisal, request one from GAR Appraisal today.
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