Is the appraisal going to make or break your Scottsdale deal? When you are buying or selling, that question can feel stressful. You want a fair, defensible value that keeps your financing on track and reflects what makes your home special. In this guide, you will learn how appraisals work in Scottsdale, what drives value locally, how to prepare, and what to do if the number comes in low. Let’s dive in.
What an appraisal is and isn’t
An appraisal is a licensed appraiser’s opinion of market value used by a lender to confirm the property is worth the amount being financed. Lenders order appraisals for purchases, refinances, and construction loans to protect the loan’s collateral.
Appraisers follow the Uniform Standards of Professional Appraisal Practice, known as USPAP, which set national ethics and reporting rules. You can read more through the Appraisal Foundation’s resources on the Uniform Standards of Professional Appraisal Practice.
An appraisal is not the same as your county tax assessment, an online estimate, or a broker opinion. The Maricopa County Assessor sets values for property tax purposes on a different schedule and with different methods. Automated valuation models are fast but do not include an onsite inspection and often miss value in custom Scottsdale homes. A Broker Price Opinion can guide listing strategy, but when a lender is involved, they rely on a USPAP-compliant appraisal.
For conforming loans, appraisers use specific forms and guidelines. The Fannie Mae Selling Guide outlines the standard Uniform Residential Appraisal Report for single-family homes. Freddie Mac provides similar direction in the Single-Family Seller/Servicer Guide.
How the Scottsdale appraisal process works
Order and independence
If you are getting a mortgage, your lender orders the appraisal and assigns an independent appraiser. You cannot select them, and the lender cannot influence the value. Turn times in a typical market range from about 3 to 10 business days after ordering, but unique or luxury homes can take longer due to scheduling and analysis.
Onsite inspection
During the inspection, the appraiser measures the home’s gross living area, photographs rooms and exterior features, and notes condition and updates. They look at systems like HVAC, roof and electrical, and amenities like pools, spas, outdoor kitchens, solar, and garages. They also note any deferred maintenance that could affect value or loan conditions.
Approaches to value
- Sales Comparison Approach. For most Scottsdale single-family homes, the appraiser relies most on comparable recent sales from the Arizona Regional Multiple Listing Service (ARMLS). They adjust for differences in size, bedrooms and baths, lot size, condition, updates, and features like pools or views.
- Cost Approach. This estimates the cost to replace the structure, minus depreciation, then adds land value. It is more common for new or highly unique homes where recent comparable sales are scarce.
- Income Approach. This can apply to income-producing properties and, in some cases, homes with documented short-term rental income. For most owner-occupied single-family loans, lenders give this less weight unless the income is central to value.
After analyzing the data, the appraiser reconciles the approaches and concludes a final opinion of value in the report.
Reporting and loan types
For typical single-family properties, the report is often the URAR (Form 1004). Different forms apply for condos, 2–4 unit properties, manufactured homes, and certain loan types. FHA loans also follow specific appraisal and property condition guidance, which you can find in HUD’s FHA appraisal and inspection resources.
Scottsdale value drivers to know
Scottsdale includes a mix of urban, suburban, and luxury enclaves. Micro-markets matter. Comparable selection can vary between Old Town, central neighborhoods, and North Scottsdale communities near the McDowell Mountains.
- Location and lot. Golf proximity, cul-de-sacs, corner lots, usable acreage, and mountain or city-light views can support higher value when comparable sales show similar premiums.
- Views and orientation. Homes with McDowell Mountain or golf course views often see adjustments when suitable comps support those premiums. Appraisers look for closed sales with similar views.
- Pools and outdoor living. Pools, spas, outdoor kitchens, and desert-friendly landscape design are common and can add value based on quality and condition. Safety or maintenance issues can reduce value.
- High-end finishes. Luxury kitchens, custom stone, and smart-home systems matter most when you can point to comparable sales with similar features.
- Permits and legal work. Permitted additions, pool installations, and garage conversions typically carry more weight. You can verify permits through the City of Scottsdale Planning and Development Services.
- HOAs and amenities. Community amenities, dues, and use restrictions affect marketability and the comparable set the appraiser chooses.
- Short-term rentals. Scottsdale sees active short-term rental activity, but lenders vary on how they treat that income. Appraisers consider zoning and HOA rules that allow or restrict rentals.
- Solar and energy features. Owned, permitted solar systems often add value with proper documentation. Leased systems are treated differently because of transfer and contract terms.
Common challenges in this market
- Limited comps for custom or luxury homes. In areas with few recent sales, appraisers may use older or more distant comps and rely more on the cost approach. The result can include a wider value range and more commentary on uncertainty.
- Unique lots and premium views. Placing a number on an exceptional view or lot requires strong comparable support. Paired-sales analysis or a broader comp search may be needed.
- New construction and major remodels. When nearby resales are scarce, appraisers look to builder sales and the cost approach to cross-check value.
- Fast-moving conditions. Scottsdale can see seasonal demand spikes. Appraisers rely on closed sales, which sometimes lag current list and pending prices. That timing can create gaps during rapid shifts.
How to prepare for the appraisal
Sellers: before listing and before the inspection
- Consider a pre-listing valuation. If your home is high-end or unique, a private appraisal or appraisal review can surface issues early and help set expectations.
- Gather documents. Pull permits, receipts, and warranties for improvements. If you installed a pool, added square footage, or upgraded systems, include permit records and invoices. The City of Scottsdale Planning and Development Services site is a good place to start for permit verification.
- Handle obvious repairs. Fix leaks, address major stains, and ensure systems are functioning. Clean, declutter, and ensure utilities are on so the appraiser can inspect thoroughly.
- Prepare an appraiser packet. Provide a concise list of upgrades, dates, costs, and any relevant permits. Include recent, nearby comparable sales that best match your home’s features. Your agent can pull supporting data from ARMLS.
Buyers: at contract and pre-closing
- Understand your contingency. Your lender orders the appraisal to protect the loan. If the value is low, your appraisal contingency, if included, can allow renegotiation or cancellation under its terms.
- Plan for a gap. If the property is unique or priced at the leading edge, be ready to cover an appraisal gap with cash or adjust terms.
- Share helpful data. Ask the listing side for permit records and recent comps that reflect upgrades or views. Cooperate on scheduling to avoid delays.
Scottsdale-specific tips
- Pools. Provide permits, remodel dates, equipment receipts, and any service records that show proper maintenance.
- Views. Offer photos from key rooms and patios to highlight what differentiates your view versus other sales.
- Solar. Bring ownership documents, production data, and interconnection details. Clarify whether the system is owned or leased.
- Short-term rental income. If the property legally operates as a rental and the lender plans to consider that income, organize leases, occupancy history, and platform documentation.
If the appraisal comes in low
- Request a reconsideration of value. Work with your lender and agent to submit a focused rebuttal. Point out factual errors, missing comparable sales, or incorrect adjustments. Include measurements, MLS printouts, and permit records as support.
- Ask about a second opinion. Some lenders will order a second appraisal or an appraisal review when the first report has clear issues. This is a lender decision.
- Renegotiate or restructure. Buyer and seller can adjust price, closing costs, or other terms to bridge the gap.
- Bring cash or exit. Buyers can cover the difference with a larger down payment. If the contract includes an appraisal contingency, you may be able to cancel under its terms.
If the issue is your property tax value, that is a separate process. You can explore appeals through the Maricopa County Assessor. Mortgage appraisals and tax assessments use different timelines and methodologies.
Key resources
- Learn about the Uniform Standards of Professional Appraisal Practice through the Appraisal Foundation.
- Review conventional loan appraisal requirements in the Fannie Mae Selling Guide and the Freddie Mac Single-Family Seller/Servicer Guide.
- For FHA loans, see HUD’s FHA appraisal and inspection guidance.
- Verify permits with City of Scottsdale Planning and Development Services.
- Review property records or appeal information with the Maricopa County Assessor.
- Understand how appraisers source local comparable sales through ARMLS.
Whether you are listing a custom North Scottsdale home or buying near Old Town, having a clear plan for the appraisal can reduce surprises and protect your goals. If you would like tailored guidance, market-matched comps, and a step-by-step prep checklist for your property, connect with Jaime Fernandez for a concierge consultation. Ready to see where your home stands today? Request Your Free Home Valuation with Jaime Fernandez.
FAQs
Who typically pays for a Scottsdale home appraisal?
- In a lender-financed purchase, the buyer usually pays the appraisal fee as part of closing costs; sellers may choose to pay for a private pre-listing appraisal.
How long do appraisals take in Scottsdale?
- Most appraisals take about 3 to 10 business days after ordering, but unique or luxury properties can take longer due to complexity and scheduling.
Can an appraiser use pending sales or only closed ones?
- Appraisers primarily rely on closed sales as the best evidence of value; pending sales can be noted as current activity but carry less weight.
What if there are no good comps for my unique home?
- The appraiser may widen the search area or time frame and rely more on the cost approach and well-supported adjustments, which can increase uncertainty.
Do pools always add value in Scottsdale’s climate?
- Pools often add value when quality and condition are good, but safety or maintenance issues can reduce value; comparable sales guide the specific adjustment.
Will a solar lease affect my appraised value?
- Leased systems can complicate valuation because of transfer and contract terms, while owned, permitted systems generally add value when documented.
Are HOA or short-term rental restrictions considered in value?
- Yes. Appraisers consider HOA fees, community rules, and rental restrictions because they affect marketability and, in some cases, income potential.
