How to Read An Appraisal Report: Skim for the Highlights, Page by Page
An appraisal report offers valuable insight into your home’s market value, guiding selling decisions. Here's how to read appraisal reports.
You love your home, but let’s face it: its appraisal report is not a real page-turner. No judgment if your eyes start to glaze over halfway through the first section. However, it’s one of those documents that’ll be super useful to decipher if you ever decide to get your home professionally valued or if there’s a dispute over how much your home is worth when you sell it. Understanding how to read an appraisal report is key to making informed property decisions.
In a nutshell, this document contains the appraiser’s opinion of value and the factors the appraiser used to arrive at that number.
“I’d say 90% of the time, appraisers do a fantastic job,” says John Krol, an accomplished Naples-area real estate agent who completes 88% more sales than the average agent in his locale and regularly works with appraisers. But there’s a small chance that “the appraiser doesn’t have what they need or it’s due the next day,” explains Krol. That’s when some honest mistakes might occur.
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We spoke with Krol, consulted with two of the largest appraiser associations in America, and read over tedious appraisal reports to bring you this guide on how to skim one for the good stuff. You’ll know where to search for common errors on the Uniform Residential Appraisal Report, the most commonly used appraisal form totaling 7 pages.