An appraisal is an opinion of market value supported by evidence: what similar homes have actually sold for, adjusted for the differences between them and yours. Every factor below matters only to the extent the market shows it matters. This is how an Arizona Certified Residential Appraiser works through a home in the Phoenix metro area, written by one who has completed more than 8,500 of them.
1. Comparable sales
Recent sales of similar homes nearby are the foundation of nearly every residential appraisal. An appraiser looks for sales that match your home in size, age, quality, condition, and location, as recent as the market allows, and adjusts for each difference. When good comparables are scarce, as with custom homes or unusual properties, the search widens and the analysis carries more weight.
2. Location within the market
Location is measured through sales. A home backing to a busy arterial road, sitting next to commercial property, or on a quiet interior lot can sell for noticeably different prices within the same subdivision. The appraiser identifies those influences and supports any adjustment with paired sales or market data.
3. Condition
Condition covers how well the home has been maintained: roof, systems, finishes, and any deferred maintenance. Items that affect safety or soundness carry the most weight, and some lending programs require them to be repaired before closing.
4. Quality of construction
Quality is separate from condition. A well maintained tract home and a well maintained custom home can both be in good condition while differing sharply in materials, workmanship, and design. Quality ratings drive some of the largest adjustments in luxury and custom home appraisals.
5. Living area
Gross living area is finished, heated and cooled space, measured by the appraiser. An enclosed Arizona room or a garage conversion counts only when it is finished and conditioned to the same standard as the rest of the house. Square footage in public records is a starting point and is often wrong.
6. Layout and functional utility
Bedroom and bathroom counts, a split floor plan, and how rooms connect all affect how buyers value a home. A four bedroom home with one bathroom, or a bedroom reachable only through another bedroom, can sell below its square footage would suggest.
7. Updates and renovations
Renovations are valued by market reaction, not cost. A recent kitchen or bathroom remodel usually contributes, though rarely dollar for dollar, and a remodel far above the neighborhood’s level may recover only part of what it cost. Keep a list of updates with dates; it helps the appraiser recognize work that is not obvious on a walkthrough.
8. Lot size and site
Larger lots, cul de sac positions, and usable yard space can add value where the market pays for them. In parts of north Scottsdale, Paradise Valley, and the outer Valley, acreage and horse privileges drive value differently than in a standard subdivision.
9. Pools
In the Phoenix market a pool typically adds value, though usually less than it cost to build, and the contribution varies by price range and neighborhood. Condition matters: a pool needing resurfacing or new equipment contributes less.
10. Views and location features
Mountain views, golf course frontage, and water features can support premiums when sales confirm them. So can the absence of negatives, such as power lines or a view of a commercial loading area.
11. Garage and parking
Garage count is a standard comparison point. RV gates and covered RV parking carry real value in many Valley neighborhoods, especially where HOA rules restrict them elsewhere.
12. Age and effective age
Actual age matters less than effective age, which reflects how updates and maintenance have extended the home’s useful life. A 1970s home with updated systems and finishes can compete with a much newer one.
13. Solar and energy features
Owned solar panels may contribute to value when the market supports it. Leased solar is generally not included in value, because the panels belong to the leasing company, and the lease terms can affect a sale. Know which you have before the appraisal.
14. Permits and legal use
Unpermitted additions, guest houses, and conversions can reduce or complicate value, and some cannot be counted as living area at all. HOA restrictions and zoning also shape what a property can legally be used for.
15. Market conditions and the effective date
Every appraisal states value as of a specific date. Seasonal swings in demand show up only through the sales data from that period; an appraiser does not adjust your value up or down based on the time of year the appraisal happens. For estates, divorces, and other past dates, a retrospective appraisal uses the sales and market conditions as of that earlier date.
What an appraiser does not consider
Under the Fair Housing Act and USPAP, an appraiser cannot base any part of a value opinion on the race, color, religion, national origin, sex, disability, or familial status of the owner, the occupants, or the people living in the neighborhood. Value rests on the property and on market evidence.
Before your appraisal
Handle small repairs, make every area of the home accessible, and have ready a list of updates with dates, permits for any additions, HOA information, and details on any solar system. None of this changes what the market will pay, but it helps the appraiser see everything that supports value.
When an appraisal carries higher stakes
Some appraisals will be examined by the IRS, opposing counsel, a court, or a buyer’s attorney. Censeo Valuation Consultants focuses on those assignments: estate and date of death appraisals, divorce appraisals, IRS qualified appraisals, litigation support, cash purchase appraisals, and pre-listing appraisals.
About the author
Andrew Ament, Arizona Certified Residential Appraiser #21472, has appraised residential property across Maricopa and Pinal Counties since 2005 and has completed more than 8,500 assignments. His background spans roughly 30 years in real estate, including sales, investment, REO, relocation, development, and property management. He holds a BBA in Finance with a Commercial Real Estate specialization from the University of Toledo and the Certified Relocation Professional (CRP) designation. Learn more about Andrew Ament’s qualifications.
Questions about a specific property? Call 480.540.5151 or email andrew@censeovc.com.