Aside from ensuring the property meets all FHA home requirements, an FHA appraiser will also look to determine the property’s value. To do this, they will evaluate the home’s condition, as well as analyze comparable properties in the area. These “comps” will include recently sold homes nearby with similar features, square footage and conditions.
The appraiser will then assign a value to the home, detail his or her findings in a report and send the report to the buyer’s mortgage lender for review. In many cases, appraisers will also take photos to show the lender the home’s condition.