Frequently Asked Questions
- What is a real estate appraisal?
- Why do I need a real estate appraisal?
- How is an appraisal different from a home inspection or a Comparative Market Analysis (CMA)?
- How long does the appraisal process take?
- What factors influence a property’s appraised value?
- How much does an appraisal cost?
- Can I attend the appraisal inspection?
- What if the appraisal comes in lower than the purchase price?
- How can I prepare my property for an appraisal?
- Are appraisals required in Alaska for all transactions?
- What is the “five-room proprietor exemption” under the ADA?
- Does my Airbnb or VRBO short-term rental have to provide ADA accommodations?
- What does STR mean?
- What is a “public accommodation” under the ADA?
- What is a “transient lodging facility” under the ADA?
- What is considered a “guest room” or “rentable unit” under the ADA?
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.
What is the “five-room proprietor exemption” under the ADA?
The five-room proprietor exemption (from 28 CFR § 36.104) excludes small lodging establishments with no more than five rooms for rent or hire from most ADA accessibility requirements, provided the proprietor (owner/operator) actually occupies the facility as their personal residence. This typically applies to classic owner-occupied bed-and-breakfasts where the owner lives on-site in the same building. It does not apply if an employee or manager lives there instead, or in short-term rental scenarios (e.g., Airbnb whole-home listings) where the owner occupies intermittently or vacates during guest stays—such properties are often treated as standard public accommodations requiring at least one accessible guest room if they qualify as transient lodging.
Does my Airbnb or VRBO short-term rental have to provide ADA accommodations?
Yes, in most cases—if your property is marketed publicly as transient lodging (short-term stays under 30 days) via platforms like Airbnb or VRBO, it is considered a place of public accommodation under ADA Title III and must comply with accessibility standards, including reasonable modifications for guests with disabilities (e.g., service animals, policy adjustments) and potentially physical features in at least one guest room for facilities with 1-25 units. The main exception is the narrow five-room proprietor exemption for owner-occupied setups with five or fewer rooms. Compliance focuses on “readily achievable” barrier removal for existing properties; consult an ADA expert for your specific setup, as intermittent personal use or non-owner residency often means full requirements apply.
What does STR mean?
STR stands for Short-Term Rental, referring to any residential property (house, apartment, cabin, or room) rented out for brief periods, typically under 30 days, often through platforms like Airbnb or VRBO. In the context of ADA compliance and hospitality valuations, STRs are treated as transient lodging facilities if offered commercially to the public, triggering requirements similar to hotels or inns.
What is a “public accommodation” under the ADA?
A “public accommodation” under ADA Title III includes places of lodging and other facilities open to the public, such as hotels, motels, inns, and commercially operated short-term rentals (e.g., Airbnb or VRBO listings). If a property is marketed publicly and provides transient lodging services, it generally qualifies as a public accommodation and must follow ADA accessibility rules to prevent discrimination against individuals with disabilities.
What is a “transient lodging facility” under the ADA?
A “transient lodging facility” refers to accommodations designed for short-term, temporary stays—typically under 30 days—such as hotels, motels, inns, bed-and-breakfasts, and short-term rentals (STRs) listed on public platforms. These facilities are subject to ADA Title III requirements for accessibility because they function as places of public accommodation, distinguishing them from long-term residential rentals.
What is considered a “guest room” or “rentable unit” under the ADA?
A “guest room” (also called a rentable unit) in the 2010 ADA Standards is any sleeping accommodation offered for short-term occupancy (typically under 30 days) in transient lodging, such as individual rooms, suites, cabins, or entire homes in small lodges or STRs marketed publicly. The total number of guest rooms determines the minimum accessibility features required (e.g., at least one room with mobility features for facilities with 1–25 units), even if the property is a single-family home used as an STR.