At Prewitt Appraisals, we've been appraising homes in Colorado Springs for over 45 years. Over that time, we've heard the same questions come up again and again — from agents in CE classes, in conversations during inspections, and regularly in divorce and estate cases.
"Will I get a different value depending on the type of appraisal?"
"Is a divorce appraisal different from a sale appraisal?"
"Does it matter why the appraisal is being done?"
"Should my seller only accept conventional offers to avoid a low appraisal?"
The short answer is the same in every case: the type of appraisal or the purpose it's being done for doesn't change the value.
Somewhere along the way, this idea took hold that certain appraisals come in "lower" than others. FHA appraisals are "tougher." Refinance appraisals don't reflect "real" value. Divorce appraisals are somehow different from what you'd get if you sold the house.
I've had homeowners tell me they only want to accept conventional offers because they're worried an FHA or VA buyer means a lower appraisal. I've heard sellers insist that a recent appraisal done for a refinance or home equity line came in lower than their house is "actually worth" — just because of the purpose it was completed for. And in divorce cases, I regularly hear concerns that the appraisal won't reflect what the house would actually sell for.
Here's the truth: the loan type doesn't change the value. The purpose doesn't change the value.
What the loan type does change is the form we use and certain property condition requirements. But when it comes to the actual market value analysis — the number at the end that everyone cares about — the methodology is identical.
Every appraisal report has a section that defines the type of value being calculated. In almost every residential appraisal you'll encounter — whether it's for a purchase, refinance, pre-listing, divorce, estate, or anything else — you'll see the same definition: "opinion of market value."
Market value is essentially what a typical, informed buyer would pay for the property in an arm's length transaction, given reasonable exposure time on the market. That definition doesn't change based on who's ordering the appraisal, what loan program the buyer is using, or why the appraisal is needed.
Think about it this way: the house doesn't know what kind of loan is being used to buy it. The comparable sales in the neighborhood don't change based on the buyer's financing or whether the appraisal is for a divorce. The market is the market.
There are legitimate differences between FHA, VA, conventional, and private appraisals — they're just not about value.
Form and format: Different loan programs require different forms. FHA and VA have specific forms with additional sections. But these extra sections cover property condition and eligibility — not value analysis.
Property condition requirements: This is the big one people confuse with value. FHA has minimum property standards (MPS) that require certain safety and habitability conditions. Peeling paint on homes built before 1978? FHA will flag it. Missing handrails? Same thing. VA has similar requirements.
Here's where the confusion comes in: these condition issues can absolutely affect whether a loan gets approved, and they might require repairs before closing. But they don't change the market value number. The appraiser isn't saying the house is worth less — they're saying it doesn't meet certain condition requirements for that loan program. Big difference.
Stickiness: FHA appraisals "stick" to the property for 120 days. If a buyer walks away and another FHA buyer comes in, they're getting the same appraisal. This creates some strategic considerations around timing, but again — it doesn't change the value itself.
This one comes up a lot: a homeowner had an appraisal done for a refinance or home equity line, and they're convinced it came in low because of the purpose. Then they want to list their house and expect a different number.
Same principle applies. A refinance appraisal calculates market value. A purchase appraisal calculates market value. A divorce appraisal calculates market value. The methodology is the same. If those appraisals were done around the same time with the same market conditions, they should land in a similar range.
If there's a meaningful difference, it's more likely due to market changes between appraisals, different comparable sales being available, or differences in appraiser analysis — not the purpose of the appraisal.
Instead of worrying about appraisal types affecting value, here's what actually matters: Is the appraiser doing a thorough, well-supported analysis?
When you look at an appraisal report, check the methodology. Are the comparable sales truly comparable? Are adjustments being made and explained? Does the analysis make sense for your market area?
Those questions matter far more than whether it's an FHA or conventional loan, or whether the appraisal is for a refinance or a divorce. A well-done appraisal is a well-done appraisal, regardless of the form it's on or the reason it was ordered.
Next time someone questions whether a divorce appraisal reflects "real" market value, or a seller wants to reject certain offers because they're worried about the appraisal, the answer is the same: the value analysis doesn't change with the loan type or purpose. What changes are the property condition requirements and some administrative details — but the market value is the market value.
If you want to verify this yourself, pull up any appraisal report and find the section defining the type of value. In nearly every case, you'll see "opinion of market value." That's your confirmation that regardless of the loan type, purpose, or who ordered it, the appraiser is answering the same question: What would a typical buyer pay for this property today?
That consistency is actually one of the strengths of the appraisal process — and it's worth understanding whether you're buying, selling, or navigating a divorce or estate situation.
