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Real Estate Appraisal


In the intricate landscape of residential real estate, property valuation plays a pivotal role in shaping crucial decisions for homeowners, buyers, lenders, and investors alike. Real estate appraisers are the experts who determine the fair market value of a property, assisting various stakeholders in making well-informed choices. In this blog post, we'll explore the distinct groups that hire real estate appraisers, focusing on the role of banks and mortgage companies in purchase and refinance transactions, while emphasizing that homeowners and their families can also directly engage appraisers for a range of essential purposes.

Banks and Mortgage Companies

Banks and mortgage companies are prominent clients in the realm of real estate appraisal, especially in purchase and refinance transactions. Their primary motivations for hiring appraisers include:

a. Purchase Transactions: In purchase transactions, lenders require appraisals to ensure that the property's value aligns with the proposed purchase price. This safeguards both the buyer and the lender by minimizing the risk of overvalued collateral.

b. Refinancing: When homeowners seek to refinance their mortgages, lenders typically engage appraisers to establish the property's current value. A precise appraisal can impact the terms of the new loan, potentially leading to more favorable interest rates and financial outcomes.

In most cases, the bank or lender can only hire the appraiser and will not allow the buyer to hire their own appraiser.

Homeowners and Family Members

Homeowners and their family members are equally significant clients who can directly enlist the services of real estate appraisers for various essential purposes. These include:

a. Potential List Prices: When homeowners contemplate selling their properties, they can hire appraisers to obtain an accurate valuation. This valuation guides them in setting an appropriate listing price, preventing the common pitfalls of overpricing or underpricing.

b. Marriage Dissolution: In cases of divorce or marriage dissolution, appraisals are instrumental in determining the fair market value of the shared property. This valuation often plays a critical role in property division negotiations.

c. Estate and Tax Purposes: Homeowners may engage appraisers for estate planning and tax-related matters. Appraisals assist in determining property values for inheritance and estate distribution, ensuring compliance with tax regulations.


Real estate appraisers serve a diverse range of clients within the residential real estate sector. While banks and mortgage companies predominantly hire appraisers for purchase and refinance transactions, homeowners and their family members can also directly benefit from their expertise. Whether it's establishing list prices, navigating marriage dissolution, or addressing estate and tax considerations, homeowners have the opportunity to harness the insights of qualified appraisers for crucial decisions. Understanding who hires appraisers and for what purposes underscores the importance of accurate property valuations in empowering informed choices across the dynamic residential real estate landscape.

Posted by Nick Hughes on September 25th, 2023 3:20 PMLeave a Comment

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April 28th, 2023 11:30 AM
As an appraiser in Minneapolis, Minnesota, I've come across a wide range of residential architecture styles in my work. Understanding these styles is crucial to accurately appraise a property's value and provide valuable insights to buyers and sellers alike. In this blog, I'll share my expertise on the most common design styles found in residential homes throughout Minneapolis. Whether you're a potential home buyer or seller looking to get the best value for your property, or simply interested in learning more about Minneapolis' architectural landscape, this guide will provide you with a comprehensive overview of the city's diverse design styles.

Colonial Style Homes
Colonial style homes originated in the 1600s and were popular in the United States until the mid-1800s. These homes are typically rectangular in shape, with symmetrical windows and a central front door. The style features a prominent front porch with columns, and the roof is typically steeply pitched with gables on each end. Many colonial homes in Minneapolis feature brick or clapboard siding.

Tudor Style Homes
Tudor style homes became popular in the early 20th century and are known for their decorative half-timbering, steeply pitched roofs, and prominent chimneys. These homes often have a medieval European look and feature arched doorways, leaded glass windows, and decorative stone or brickwork. Tudor homes in Minneapolis can be found in a variety of sizes, from small cottages to large mansions.

Cape Cod Style Homes
Cape Cod style homes originated in New England in the 17th century and were popularized in the early 20th century. These homes are typically small and simple in design, with a symmetrical façade and a steeply pitched roof with gables on each end. Cape Cod homes in Minneapolis often have cedar shingle siding and a central chimney, and may feature a front porch or dormer windows.

Victorian Style Homes
Victorian style homes became popular in the late 1800s and early 1900s. These homes are known for their ornate details, such as intricate woodwork, steep roofs, and decorative trim. Many Victorian homes in Minneapolis feature a turret or tower, and some have bay windows or stained glass windows. Victorian homes in Minneapolis often have multiple colors and materials on the exterior, such as brick, stone, and wood.

Mid-Century Modern Style Homes
Mid-century modern homes were popular in the 1950s and 1960s and are known for their clean lines and minimalistic design. These homes often have a flat or low-pitched roof and large windows that blur the line between indoors and outdoors. Mid-century modern homes in Minneapolis typically have an open floor plan, with a focus on functionality and simplicity.

Minneapolis has a diverse range of residential architecture styles, from traditional colonial and Victorian homes to Tudor and Cape Cod style homes that bring a touch of old-world charm. Each style has its own unique characteristics and features, making Minneapolis a fascinating city for architecture enthusiasts to explore.

Posted by Nick Hughes on April 28th, 2023 11:30 AMLeave a Comment

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