The Appraisal Inspection
The question of what an appraiser is looking for during an appraisal interior walk-thru is a major inquiry by home owners, whether or not it is verbally conveyed.
In short, the appraisal inspection estimates what the market, with participants that are well informed and advised about their options, would consider. Regarding the physical inspection of the home, this would include, but not limited to, the following:
Physical Condition
The wear and tear of a home is at the foremost of the list. The level of upkeep for a home is important for a number of reasons including longevity and re-sale value. Impeccable upkeep can sometimes outweigh the prominence of older finish if it has been well maintained. During the walk-thru, the condition of the home is carefully noted in order to contrast it with other homes in the market place.
Age and Quality of Finish & Short-Lived Items
The age of the finish is carefully noted and discerned. Have the cabinets been replaced, if so what is the grade of workmanship and materials used? Maybe the existing cabinets from original build have been re-faced or painted in a transformative manner, or perhaps the original cabinetry is timeless in style/appeal with greater quality than what newer cabinets have to offer. The quality and appeal of flooring is carefully looked at; not all "hardwood" flooring is equal. Periodic finish features such as pop-corn ceilings, plaster and/or wood-panel walls, and the quality of remodeling are all indicators to a homes age and level up upkeep. Roofing, furnaces, HWTs, windows, wiring panels, plumbing fixtures, and any other item that is readily-apparent is noted and contrasted with the market place as well as replacement-costs, and level of depreciation.
Design
In addition to upkeep, one of the biggest things I look for is the design of the home. Yes, a well maintained and updated home is great but if the design is obtuse or antiquated, that is something to strongly consider. Open-Floor concepts are a big deal right now; Formal-Concept living is usually a thing of the past; yet the comparative market still has the ultimate say. The layout of the home and the relation of rooms, potential for future/feasible floor-plan reconfiguration is carefully considered. Some homes have very harmonious floor-plans with great flow, others not so much. Some homes have excellent potential for transition to a more appealing layout with minimal cost; others are possible but with a slough of remodeling costs; some homes are destine to be leveled if the market beckons re-gentrification/infill; some homes are timeless specimens of design which can be possible across all price ranges and styles.
Structure
Bottom line is that appraisers are not home-inspectors; home-inspectors are not structural engineers; and none of the inverse relationships of these parties can certify what the other is or is not doing. Appraisers are trained to observe building characteristics and construction methodology which can be implored upon conducting an appraisal report. To delve into structural engineering issues is beyond the scope of the typical appraisal assignment.
The appraisal makes clear assumptions in the report regarding the sanctity and structural integrity of the home. Some inadequacies and issues are readily apparent and can be called out as warranting repair/alteration or further inspection. Ultimately, what is going on between the walls of a home is a mystery to all of the aforementioned however, there are definite indicators and patterns that a home will reveal to a trained eye that can offer clear/convincing evidence to support suggestions/findings.