Mississippi Appraisal Associates, LLC
Residential Real Estate Appraisal & Consulting Services

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Mississippi Appraisal Frequently Asked Questions

What is an appraiser?

Appraisers are licensed by the state of Mississippi and held to strict ethical standards. Appraisers must act as independent third parties in providing their professional opinion of the market value of a home.

What is a home appraisal?

A home appraisal is an estimate of value given by a professional who specializes in giving opinions on property values. Appraisals are often required by banks or other lenders when a home is being considered in connection with a loan by the homeowner or homebuyer. The appraisal report is a detailed document that evaluates such items as the condition of the home, the neighborhood, and information from comparable homes that have recently sold in your market. Residential home appraisals are most often based on a sales comparison and/or replacement cost methodology. Income-producing properties, such as commercial properties, may rely on income methodologies to reach an estimate of value.

What is the sales comparison approach to value?

The sales comparison approach to estimating value involves looking at similar properties in your neighborhood, called comparables, that have recently sold and comparing the data from these properties to your home to arrive at an estimate of value.

What is the replacement (cost) approach to value?

When using the cost/replacement approach to value, an appraiser will look for what it would cost to replace your home if it were destroyed. This is usually done by obtaining current construction costs for similar homes and applying a depreciation factor.

Is an appraisal similar to a home inspection?

No. An appraisal has a different purpose from and should not be used as a substitute for a home inspection. Appraisers are looking for items that would have a major impact on a home’s value. An appraiser would not, for example, examine the roof of a home for leaks or the crawl space of a home for hidden defects. In most cases, homebuyers should obtain both a home inspection and an appraisal before buying a home.

Who chooses the appraiser?

The appraiser is usually chosen by the lender. In some circumstances, the lender will allow the seller to chose and appraiser if the appraiser is on the lender’s list of approved appraisers. The seller should check with the lender before commissioning an appraisal to be sure the lender approves of the appraiser and will allow the seller to choose the appraiser.

Is appraised value the same as tax assessment? Can’t we just use the same valuation as the local tax assessor? Will having an appraisal cause my taxes to increase?

The value estimated by the county appraiser is for tax purposes only and is likely to be out-of-line with the true value of your home. However, your tax assessment will not go up or down as a result of the work completed by our office. Our Mississippi appraisers are required to maintain confidentiality with our client and not the county tax assessors office.

My real estate broker/agent gave me a market analysis for purposes of assisting me in determining a list price for my home. Can’t we just use this for appraised value?

Most Mississippi real estate brokers or agents can compile a “comparative market analysis” to assist you in setting your listing price for your home. This comparative market analysis is an informal estimate of value based on the broker’s knowledge of comparable sales in a neighborhood. It is not the same thing as, and should not be used in lieu of, a formal appraisal. An appraisal is a formal, impartial estimate or opinion of value, usually completed on a lender or underwriter-approved appraisal form. Certified appraisals can only be completed by appraisal professionals that have completed the education required by the state of Mississippi.