What are the different types of home appraisals?

Home appraisals generally come in four formats. A full appraisal includes an in-person inspection of the interior and exterior. A drive-by appraisal relies on an exterior-only inspection. A desktop appraisal involves no visit at all: the appraiser works from public records, listing data, and other sources. A hybrid appraisal sends a third party familiar with the property to collect the data remotely while the appraiser completes the analysis and value opinion.

Common residential appraisal formats include the Uniform Residential Appraisal Report (Form 1004) for single-family homes, Form 1025 for duplexes and fourplexes, and vacant land reports. Letter-format appraisals are common for divorce, listing, and mortgage purposes. For federally related transactions, lenders require an appraisal from a state credentialed appraiser, and every appraisal must follow the Uniform Standards of Professional Appraisal Practice (USPAP).

Appraisals differ mainly by who orders them and why. Lenders order appraisals for purchases and refinances to confirm the home's value. Other common engagements Michigan appraisers handle include probate and date-of-death valuations, divorce and prenuptial work, estate and trust valuations, and property tax appeals presented to a local Board of Review or the Michigan Tax Tribunal.

Home appraisals fall into two broad groups: lender appraisals required for federally related transactions, such as FHA-insured loans, and non-lender work. In Rhode Island, non-lender engagements include estate and date-of-death valuations, divorce and probate appraisals, property-tax revaluation appeals, and expert testimony in Superior Court, Family Court, and Federal Bankruptcy Court. Federal law requires a state-licensed or state-certified appraiser for any federally related transaction.