Elements of an Appraisal Report

By Tim Williams, Appraiser

The head of Williams Research, Inc., and Single Point Solutions, Idaho-based appraiser and real estate professional Tim Williams is also the managing director of Pushlocal’s western region. A member of several state and regional appraisal institutes, Tim Williams has experience as a rural, private, and commercial appraiser.

During the appraisal period of the home-buying process, the appraiser examines elements of the home, including its exterior and interior, the size of the property, and renovations or improvements. After conducting an appraisal, he or she issues an appraisal report for the buyer, seller, and the bank.

Introduction

Although it can vary from state to state and company to company, the report usually includes a number of standard items.

Essentially, the report should use clear, concise language, explain its terms and definitions, and identify the purpose of the appraisal. The appraiser should include any additional information used during the process, ranging from real estate listing service information to records from the county courthouse. Additionally, the report must include the property size and value, as well as any significant structural issues, such as cracks in the foundation or wet basements. Finally, the appraisal report gives the loan amount the home is worth, which may be above, below, or at the asking price.

Appraisal Report