What Your Appraisal Results Mean 

As a homeowner who’s recently requested an appraisal, you may be unsure of how to interpret your report when you get it back. At Allstate Appraisal, we’ll always guide you through your appraisal report and answer any questions you have. In the meantime, here’s how to interpret the many pages of data you’re being handed—

Subject Line

Usually, the appraisal report will start with a subject line. This is where your address and other basics of your property will be listed. 

Contract

This part of the appraisal report will outline the key players involved in the appraisal transaction. That means you and the appraiser. This section will also list the contract price, the date, and any other important financial details. 

Neighborhood

In this section, the appraiser will provide details about your neighborhood’s real estate market. For example, the appraiser will note any price trends, define legal boundaries of the neighborhood, determine how the neighborhood is characterized (urban, rural, etc.), and make a note of the degree of development of the neighborhood. 

Site

This section lists the technical details of your home and the site that your home sits on, such as whether you’re served by well water or city water, if you have a sewage system, your electrical connection, whether the property is in flood zone, etc. 

Improvements

In this part of the appraisal report, the appraiser will outline the bare-bones details of your home, making note of garage type and size, square footage, design style, year built, type of driveway materials, roof material, appliances, amenities, any adverse conditions, type of foundation, and more. 

Reconciliation

While your report will contain far more sections than what they’ve been reduced to here, the most important section for you to know about is the one titled “Reconciliation.” It is within this section that the appraiser’s finding—the absolute appraisal value—will be stated. Usually, the appraiser’s final finding will be circled in red. 

Why an Appraisal Report Matters

The outcome of your appraisal report could impact your ability to buy or sell the home, or could make it more difficult or easier for you to finance or secure a new loan or credit. The outcome of an appraisal report may also inform certain decisions, such as whether to sell now, remodel your home, or hold onto your home for many more years to come.

At Allstate Appraisal, we are residential appraisal experts. To learn more about our appraisal process and how to interpret your report, call our team directly today.