Whether you’re selling your home, refinancing or deciding to expand, an appraisal is a critical step in the real estate process. These services determine a property’s value, which in turn helps you set an appropriate purchase price or mortgage loan amount. Appraisals also play a role in setting rent schedules, evaluating construction and renovation projects, conducting mergers and acquisitions, counseling clients in investment decisions and assisting lenders in valuing assets for foreclosure proceedings.

During an appraisal services, a certified appraiser performs a physical inspection of the property and compares it to similar properties in the neighborhood. The style, condition and sale prices of these ‘comps’ help the appraiser estimate your property’s worth. The neighborhood itself plays a role, too: A newer house in a developing subdivision might appraise higher than an older home in an area that’s declining.

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If you’re worried about a low appraisal, you can try to improve your home’s appeal by decluttering and staging it. You can also provide the appraiser with a list of comparable homes in the area that you think might affect your home’s value, but it’s up to them to decide which ones to use.

An appraiser’s job requires a high level of financial numeracy, such as calculating square footages and establishing long-term price trends. It’s also important to be familiar with local real estate sales and property tax laws. And since an appraiser often prepares reports, they need to be proficient in writing.