Frequently Asked Questions

What is a home appraisal?

A home appraisal is a professional, third-party assessment of a property’s market value. Certified appraisers use three key methods to determine value: the Sales Comparison Approach (comparing recent, similar property sales), the Cost Approach (estimating land and construction costs minus depreciation), and the Income Approach (used mainly for income-producing properties). At California Home Appraisals, we specialize in delivering accurate valuations for residential homes across the Sacramento region.

Why would someone need a home appraisal?

Home appraisals serve many purposes beyond mortgage lending. Common reasons include:

  • Selling a home (FSBO or with an agent)

  • Buying a home and ensuring fair market value

  • Divorce or estate settlement

  • Bankruptcy proceedings

  • Property tax appeal

  • PMI (Private Mortgage Insurance) removal

  • Financial planning or trust valuation

  • Legal cases like eminent domain or bail bonds

Our certified appraisers serve homeowners, attorneys, and financial professionals throughout Lincoln, Sacramento, and surrounding areas.

What’s the difference between an appraisal and a home inspection?

An appraisal determines your home’s market value based on comparable sales, location, and property characteristics. A home inspection, by contrast, assesses the condition of the home’s structure, systems, and safety—like the roof, HVAC, plumbing, and electrical. Appraisers do not test mechanical systems or look for code violations. For a full condition report, a separate home inspection is required.

How does an appraisal differ from a Comparative Market Analysis (CMA)?

A CMA is a market estimate prepared by a real estate agent, often used to set a listing price. An appraisal, however, is a defensible, detailed, and independent valuation report created by a licensed and certified appraiser. Appraisers are held to strict ethical and professional standards and have no financial stake in the sale, ensuring unbiased results.

What’s included in an appraisal report?

An appraisal report typically contains:

  • Purpose of the appraisal and intended users

  • Effective date of valuation

  • Property characteristics (location, size, condition, amenities)

  • Neighborhood analysis and market trends

  • Description of the valuation methods used

  • Photos, maps, and comparable sales

  • Legal information (zoning, easements, encumbrances, etc.)

Every report is built to meet Uniform Standards of Professional Appraisal Practice (USPAP) guidelines and is tailored to the property type and intended use.

Where do you get your appraisal data?

  • Our appraisers collect both specific and general data:

  • Specific data comes from the property itself during the site visit

General data comes from local MLS systems, assessor records, plat maps, FEMA flood zone data, and public documents

We also draw on our extensive experience in Placer, Sacramento, Sutter, and Yuba Counties to ensure each appraisal reflects current market trends.

Can I remove PMI with an appraisal?

Yes! If your mortgage balance is less than 80% of your home’s current market value, you may be eligible to cancel PMI. We specialize in PMI removal appraisals and can help you determine if you’ve built enough equity. Many homeowners save hundreds—or even thousands—per year by eliminating unnecessary PMI.

What should I do before my appraisal inspection?

To prepare for your appraisal inspection:

  • Make all rooms accessible, including attic and crawlspaces

  • Ensure the appraiser can walk freely around the property exterior

  • Provide documents such as a title report or recent pest, septic, or home inspection reports

  • Clear any clutter from around attic access points

Being prepared ensures a smoother inspection and more accurate results.

What is “market value” in real estate?

Market value is the most probable price a property would sell for under normal conditions. This assumes:

  • Buyer and seller are both informed and acting in their best interests

  • The home is exposed to the open market for a reasonable time

  • The transaction involves no special concessions

  • Payment is in cash or equivalent financing

This is the standard definition used by lenders, courts, and appraisers.

Who owns the appraisal report?

Ownership depends on who ordered the appraisal. In lender transactions, the lender owns the report—even if the borrower pays for it. However, when a homeowner directly hires us (for estate, divorce, tax, etc.), you own the report and can use it however you wish.

Do some home improvements add more value than others?

Yes. Improvements like replacing the front door, siding, or windows often yield better ROI than large renovations. Updated kitchens and bathrooms also provide solid value—especially when selling. However, returns vary by neighborhood, buyer expectations, and regional trends. An appraisal can help assess how upgrades affect your home’s value.