Top items to review in an appraisal report: Part 3

What was the appraiser thinking? That’s not always easy to tell since an appraisal report can often be more than 25 pages in length. Where do you even begin to understand the rationale of the appraised value?

formsOver the past couple weeks I’ve shown you some of the big-ticket items to look for in an appraisal report (see Part 1 and Part 2). Today I wanted to wrap up this series by providing an example of an appraisal report that includes the information from the previous posts as well as a few extra tidbits. This example has sections highlighted in bold blue text to help you get straight to some of the most important items to review. This is perfect for home owners, attorneys and anyone in the real estate community wanting to brush up on the art of reading an appraisal. Ultimately, knowing these things may help you gauge whether the report is reliable or not (as well as give you a framework for challenging a bad appraisal).

CLICK HERE TO DOWNLOAD the example report. I’ve highlighted about ten sections in blue and included descriptions for ease of use. I’m also glad to visit your office to lead discussion to talk through this document (it would take 10-15 min).

example appraisal report - by sacramento appraisal blog

Please note each appraisal software company may have a slightly different layout, and that appraisals for non-lending purposes may look even less similar.

Any questions or stories to share? Comment below.

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  1. […] Understand the Report: Grab a coffee and scone and start reading through appraisal reports when you get them (I know that sounds dull, but the coffee is going to keep you awake). Instead of only looking at the bottom line value, start scanning some of the most important parts of the report such as comp selection, adjustments given, neighborhood description, neighborhood boundaries and the final reconciliation of value. If you’re brand new, this might sound like I’m speaking martian, but these are all sections in the appraisal report, and in my opinion some of the meatiest parts of the valuation that should help tell the story of value (or show glaring errors that the appraisal doesn’t “cut the mustard” so to speak). I actually have a two-page example report for you to download so you can learn to spot the top items to review in the appraisal report. […]

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