Why is the appraiser coming to my house?
It all starts with the inspection. An appraiser's duty is to inspect the property being appraised to ascertain the true status of that property. He or she must actually see features, like the number of bedrooms and bathrooms, the location of the property, and so on, to ensure that they really exist and are in the condition a reasonable buyer would expect them to be. The inspection often includes a sketch of the property, ensuring the proper square footage and conveying the layout of the property. Most importantly, the appraiser looks for any obvious features - or defects - that would affect the value of the house. An FHA inspection further inspects the attic or crawlspace, appliances and water pressure. An appraiser may even look under your sink!
Once the site has been inspected, an appraiser uses two or three approaches to determine the value of real property: a cost approach, a sales comparison and, in the case of a rental property, an income approach.