What is the difference between a general appraisal and a mortgage appraisal?

What is the difference between a general appraisal and a mortgage appraisal?

• A. A general appraisal provides an independent market value; a mortgage appraisal is ordered by a lender to determine loan value and is specific to financing
• B. Mortgage appraisals are faster
• C. General appraisal is performed by the buyer
• D. A mortgage appraisal disregards market conditions

Answer: (A)

Understanding appraisals means focusing on why they’re done. A general appraisal provides an independent estimate of the property's market value for a variety of purposes such as setting a listing price, tax assessments, insurance, or estate planning. It isn’t tied to financing, and the party requesting it can be a buyer, seller, or another interested party. A mortgage appraisal, by contrast, is specifically ordered by a lender to determine the loan value and to assess the property as collateral for a particular loan. The goal is to support underwriting and decide how much the lender is willing to lend, so the report emphasizes things that affect loan value, using comparable sales, condition, and features within the financing context. Turnaround time, who orders it, or whether market conditions are considered aren’t the defining differences. Mortgage appraisals aren’t inherently faster than general ones, they aren’t necessarily performed by the buyer, and they do take market conditions into account just like general appraisals.

Understanding appraisals means focusing on why they’re done. A general appraisal provides an independent estimate of the property's market value for a variety of purposes such as setting a listing price, tax assessments, insurance, or estate planning. It isn’t tied to financing, and the party requesting it can be a buyer, seller, or another interested party.

A mortgage appraisal, by contrast, is specifically ordered by a lender to determine the loan value and to assess the property as collateral for a particular loan. The goal is to support underwriting and decide how much the lender is willing to lend, so the report emphasizes things that affect loan value, using comparable sales, condition, and features within the financing context.

Turnaround time, who orders it, or whether market conditions are considered aren’t the defining differences. Mortgage appraisals aren’t inherently faster than general ones, they aren’t necessarily performed by the buyer, and they do take market conditions into account just like general appraisals.