Frequently Asked Questions

Cornermark Real Estate is located in Asheboro, North Carolina - the heart of the state - we proudly serve communities across central North Carolina, including Alamance, Davidson, Davie, Forsyth, Guilford, Montgomery, Moore, Randolph, and Richmond counties.

The cost of an appraisal with Cornermark Real Estate varies depending on the type of property and other factors. Please contact us for a quote.

All of Cornermark Real Estate's appraisers are licensed and certified by the state and have extensive experience in the industry. We are committed to providing our clients with the highest quality appraisal services.

A real estate appraisal is a professional opinion of value developed through an in-person inspection and formal analysis. Appraisers use three common approaches to estimate a property's market value:

• Cost Approach: Estimates how much it would cost to rebuild the property, subtracts depreciation (such as wear and tear), and adds the land value.
• Sales Comparison Approach: Compares the property to similar homes that have recently sold in the area. This is the most widely used and generally the most accurate method for residential properties.
• Income Approach: Used mainly for income-producing properties, this method estimates value based on the income the property generates—essentially what an investor might be willing to pay. 

The final opinion of value often weighs these approaches based on the property type and purpose of the appraisal.

 The most important function of a real estate appraiser is to provide an unbiased, professional opinion of value. This valuation helps support a wide range of financial transactions, such as home purchases, refinancing, estate settlements, and more.

Appraisers conduct a thorough inspection and analysis of the property, then produce a detailed report that outlines their findings and supports their conclusion of value. This report is used by lenders, buyers, attorneys, and other stakeholders to make informed decisions.

 While the most common reason for ordering an appraisal is to support a real estate or mortgage transaction, there are many other situations where a professional opinion of value is essential. These include:

• To obtain a mortgage or refinance a loan
• To appeal or reduce property taxes
• To determine replacement cost for insurance purposes (such as PMI)
• To contest high assessed property values
• To settle an estate or handle probate matters
• To establish a fair purchase price when buying a home
• To determine a market-based asking price when selling
• To support a condemnation or eminent domain case
• To meet requirements from government agencies such as the IRS
• To support legal proceedings or lawsuits involving real estate 

An appraisal provides objective, credible information that protects your interests in both financial and legal matters.

 A home inspector and a real estate appraiser serve different roles in a real estate transaction:

• A home inspector does not provide an opinion of value. Instead, they conduct a detailed examination of the physical condition of the property—from roof to foundation.
  A typical inspection report includes evaluations of:
  • Heating and cooling systems (weather permitting)
  • Electrical and plumbing functionality
  • Structural components like walls, ceilings, floors, windows, attic, and basement 
  • Foundation and other visible systems and features 
• A real estate appraiser, on the other hand, provides an unbiased estimate of the property's market value, which may include a general visual inspection but is focused primarily on valuation, not condition.

Both professionals are important—but they serve very different purposes.

Simply put, the difference between an appraisal and a CMA is like night and day.

• A Comparative Market Analysis (CMA) is typically prepared by a real estate agent and provides a general estimate of value based on recent sales and market trends. It's designed to offer a “ballpark figure” to help guide listing or offer prices, but it may not be based on verified data or consistent methodology.
• An appraisal, on the other hand, is a defensible, well-documented opinion of value completed by a licensed or certified appraiser. It relies on verified comparable sales, as well as analysis of the property’s location, condition, improvements, and market data.

Perhaps the biggest difference is the person behind the report:

• A CMA is created by a real estate agent, whose income may depend on the outcome of a sale.
• An appraisal is conducted by an independent professional, trained to offer an objective, unbiased opinion with no stake in the transaction.

Appraisals are often required by lenders and courts because of their credibility, accuracy, and impartiality.

Each appraisal report must provide a credible and well-supported estimate of value, and include the following key elements:

• Client and Intended Users: Identifies who ordered the appraisal and who else is authorized to rely on the report.
• Intended Use: Explains the purpose of the appraisal (e.g., financing, tax appeal, estate settlement).
• Purpose of the Assignment: Clarifies why the appraisal is being performed.
• Type and Definition of Value: Specifies the kind of value being reported (usually market value) and provides its legal definition.
• Effective Date: Indicates the date as of which the appraiser’s opinion of value is valid.
• Relevant Property Characteristics: Includes physical, legal, economic, and locational attributes of the property, and identifies any non-real estate items (e.g., personal property or trade fixtures) included in the valuation.
• Legal Factors: Details any easements, restrictions, encumbrances, leases, covenants, contracts, special assessments, or ordinances that could affect value.
• Division of Interest: Notes any partial ownership or segmented interests being appraised.
• Scope of Work: Describes the research, analysis, and methodology the appraiser used to complete the assignment. 

These components ensure the appraisal is transparent, legally sound, and appropriate for its intended use.

When delivering an appraisal report, an appraiser must ensure that the report is credible, accurate, and professionally developed. Specifically, appraisers are required to:

• Use appropriate methods and analysis for the property type and assignment
• Avoid significant errors, whether by omission or commission
• Provide appraisal services with due care—not carelessly or negligently
• Communicate conclusions in a clear, well-supported, and defensible report

In most states, real estate appraisers must be licensed or certified, which requires:

• Extensive education and experience
• Adherence to a strict code of ethics
• Compliance with the Uniform Standards of Professional Appraisal Practice (USPAP)—the nationally recognized guidelines for developing and reporting real property appraisals

These standards ensure that clients, lenders, attorneys, and government agencies receive reliable, unbiased valuation reports they can trust.

Licensing and certification requirements for real estate appraisers vary by state, but they typically involve a combination of:

• Classroom education: Completion of approved coursework covering valuation principles, ethics, and appraisal practices
• Examinations: Passing state and/or national licensing exams
• Practical experience: Accumulating a required number of supervised appraisal hours in the field

Once licensed or certified, appraisers must also complete continuing education courses on a regular basis to maintain their credentials and stay current with industry standards and regulations.

These requirements help ensure that appraisers have the knowledge, experience, and ethical foundation to deliver accurate, reliable, and unbiased valuation services.

Appraisers are most commonly hired by lenders to determine the market value of real estate in connection with a loan transaction—such as a mortgage for a home purchase or refinance.

However, appraisers also play an important role in a variety of non-lending situations, including:

• Litigation support (e.g., divorce, eminent domain, property disputes)
• Tax matters, such as appealing property tax assessments
• Estate planning and settlement
• Investment decisions, including buying, selling, or managing real property 

In all cases, the appraiser provides a professional, unbiased opinion of value to support informed financial or legal decisions.

One of the appraiser’s core responsibilities is gathering and analyzing data—which falls into two main categories:

Collected directly from the subject property during the on-site inspection, this includes:

• Location and neighborhood influences
• Property size, layout, and functional utility
• Physical condition and construction quality
• Amenities, updates, and site features (e.g., landscaping, garages, pools)

Used to understand the broader market environment, general data includes:

• Comparable sales from multiple sources, such as:
  • Local Multiple Listing Services (MLS)
  • County tax records and assessor databases
  • Third-party data providers (e.g., CoreLogic, ATTOM, Redfin, Zillow—used cautiously for confirmation)
  • Broker price opinions (BPOs) when applicable
  • Professional networks and past appraisal files in the same market area 
• Public documents, including deeds and recorded sales
• Flood zone data, often obtained from FEMA or tools like InterFlood
• Market trends and prior experience, drawn from the appraiser’s personal knowledge of the area and property type 

Using both specific and general data, the appraiser forms a credible, well-supported opinion of value that reflects current market conditions.

An appraisal is essential any time the value of a home or other real property is part of a significant financial decision. Common situations where an appraisal is beneficial include:

• Selling a property – to help set a fair and competitive asking price
• Buying a property – to ensure you’re not overpaying
• Estate settlements – to assist in the fair division of assets 
• Divorce proceedings – to determine equitable property distribution 
• Refinancing a mortgage – to support lending decisions 

Because a home is often the largest financial asset a person owns, understanding its true market value is key to making sound financial choices.

PMI stands for Private Mortgage Insurance. It’s a type of insurance that protects your lender if you stop making payments on a loan—usually required when your down payment is less than 20% of the home’s value.

Once you’ve built up 20% equity in your home, either by paying down your loan or through rising property values, you may be eligible to remove PMI. In many cases, your lender will require a professional appraisal to confirm your home’s current value before canceling the insurance.

Getting rid of PMI can save you hundreds—even thousands—of dollars a year.

The first step in most appraisals is a home inspection. During this visit, the appraiser will:

• Measure the exterior of the home
• Confirm the layout and size of interior rooms
• Evaluate the overall condition of the property
• Take photos of the inside and outside for the appraisal report

To help things go smoothly, here are a few ways you can prepare:

• Trim bushes or trees that block access to the home’s foundation
• Move any items that make it hard to walk around or measure the structure

• Make sure the appraiser can easily access important systems like the furnace, water heater, and electrical panel
• Turn on lights in darker areas such as basements or attics

Providing these items can speed up the process and improve accuracy:

• A survey of the home and lot
• A deed or title report with the legal property description
• A recent property tax bill
• A list of any personal property included in the sale 
• A copy of the original building plans, if you have them

A little preparation can go a long way in helping the appraiser deliver a complete and reliable report.

Market value (sometimes called fair market value) is the most likely price a property would sell for in a competitive, open market.

For a sale to reflect true market value, a few conditions need to be met:

1. Both the buyer and seller are typically motivated—neither under pressure to act.
2. Both are informed and acting in their best interest.
3. The home or other real property has been exposed to the market for a reasonable amount of time.
4. The sale is made using cash or standard financing, not inflated by special terms or incentives.
5. The price isn’t affected by anything unusual, like family discounts or seller concessions. 

In short, market value is what a well-informed buyer would reasonably pay to a well-informed seller under normal conditions.

In most real estate transactions, the lender orders the appraisal, even though the home buyer pays for it as part of the closing costs. Because the lender is the official client, they own the report and decide how it can be used. The buyer usually receives a copy with the closing documents, but can’t reuse it for other purposes (like refinancing or another lender) without the lender’s permission.

If a homeowner hires the appraiser (outside of a loan process), the homeowner is the client and can typically use the appraisal however they choose—unless the appraiser has clearly stated a specific intended use, such as:

• PMI removal
• Estate planning or settlement
• Tax appeal
• Divorce or legal proceedings

In those cases, the appraisal is valid for that specific purpose, and reusing it for another may not be appropriate or accepted.

Not always—the value added by a home improvement depends heavily on the local market.

For example, adding central air conditioning in Houston, Texas may increase value significantly due to the climate. But in Buffalo, New York, it may not make much of a difference.

That said, some renovations tend to offer better returns on investment across the board. According to the Remodeling 2023 Cost vs. Value Report, two of the top renovations nationally were:

• Kitchen remodels, which returned an average of 88% of their cost
• Bathroom remodels, close behind at 85%

These figures can shift year to year and vary by region, so it’s always smart to consult with a local real estate expert or appraiser before starting major upgrades.