What is a real estate appraisal?

A real estate appraisal is an unbiased, professional opinion of a property’s market value, conducted by a licensed or certified appraiser. It involves analyzing the property’s condition, location, comparable sales, and market trends to provide an objective estimate. If the opinion of value wasn’t developed by a professionally licensed, certified real estate appraiser, then it isn’t an appraisal.

Why do I need a real estate appraisal?

Appraisals are typically required for mortgage lending, refinancing, buying or selling of property, estate planning, divorce settlements, tax appeals, or eminent domain cases. Lenders use them to ensure the property value supports the loan amount, protecting both parties from overpaying or over-lending. Appraisals are also the best tool for property tax appeals.

How is an appraisal different from a home inspection or a Comparative Market Analysis (CMA)?

An appraisal provides an independent opinion of market value for lending or legal purposes.

A home inspection focuses on the property’s structural and mechanical condition, identifying defects or needed repairs. Appraisers are NOT code compliance inspectors or engineers.

A CMA, prepared by a real estate agent, is an informal estimate of value based on recent sales to help price a home for listing—it’s not as rigorous or defensible as an appraisal. A real estate agent/broker CANNOT call any of their valuation products an “appraisal” unless they also possess a current license as a real estate appraiser. A broker who also has a real estate appraisal license cannot operate in both capacities on the same transaction and MUST disclose to all parties any previous services provided to a property within the previous three years.

How long does the appraisal process take?

The on-site inspection usually takes 30-90 minutes, depending on property size and complexity. At Rikrland Valuation Services, our standard completion times are 4-5 weeks from the date of the site visit. Quicker is considered a rush; longer is considered an extended completion timeline.

What factors influence a property’s appraised value?

Key factors include location, size, condition, quality, age, improvements (e.g., renovations), comparable recent sales, market trends, and economic conditions. In Alaska, unique elements like remote access, seasonal impacts, resource proximity (e.g., services or transportation timelines), and climate-related features can also play a role. Recent updates or renovations often affect value.

How much does an appraisal cost?

Costs vary by property type, complexity (of needed analysis), access, completion timeline, risk and location. In Alaska, residential appraisals typically range from $1,500 to $3,500 or more for complex or remote properties. Commercial appraisals are generally significantly higher, though not always. At Rikrland, we strive to find an appraisal product, timeline, and scope of work that will fit the client’s needs and budget.

Can I attend the appraisal inspection?

Yes, buyers, sellers, or agents are always welcome to be present. It’s a good opportunity to point out recent upgrades or unique features, and answer questions the appraiser might have. Rikrland requires a property representative to be present to ensure all spaces are available to the appraiser to view and ensure site safety. See our company policies for more information.

What if the appraisal comes in lower than the purchase price?

This happens when the purchase price is not well supported by market sales in the area. Options to continue the deal can include renegotiating the price with the seller, paying the difference in cash, or working with the lender for other options. If you believe the appraisal has errors, the client can provide additional information or request verification of perceived incorrect information which might have affected the value conclusion in the report.

How can I prepare my property for an appraisal?

Clean and declutter the home, complete minor repairs, provide access to all areas (including attics and crawl spaces), and compile a list of recent improvements with receipts. For Alaskan properties, highlight energy-efficient features like insulation or heating systems.

Are appraisals required in Alaska for all transactions?

Appraisals are federally mandated for most mortgage loans over certain thresholds. For cash purchases or non-federally related transactions, they’re optional but recommended.

If you have additional questions, contact us for a consultation—our senior appraiser, Lydia Larson, with her extensive designations (MAI, AI-GRS, ASA, GAA, MNAA) and over twenty years of Alaskan appraisal expertise, is here to help.