Can the seller see the buyer's appraisal?

Whose report is it, anyway?

On a financed purchase, the appraisal belongs to the lender's file. The lender orders it, the lender is the appraiser's client, and the report is written for the lender to decide on a loan. As the National Association of REALTORS points out, on most mortgage appraisals the buyer, the seller and the agents are not the client.

The buyer does have rights to it. The CFPB says borrowers are entitled to a free copy of the appraisal on a first-lien mortgage, delivered promptly after it's done and no later than three business days before closing.

The seller is the one person in the deal whose house got measured, photographed and graded, and who has no automatic right to read the grade. It feels a little like your kid's report card being mailed to the neighbors.

Why the appraiser can't just send it to you

Appraisers follow USPAP, the professional standards for appraisal work. One of its rules is confidentiality. An appraiser generally can't disclose the results of an assignment to anyone other than the client and parties the client specifically authorizes.

Freddie Mac says the same thing in plain words: appraisers can't discuss the results with anyone other than the lender.

So if you call the appraiser and ask, "Off the record, did we make it?", the correct answer is a polite version of "I can't tell you." That isn't the appraiser being difficult. Answering would be a violation of the rules they're licensed under. I promise we're not hiding the report under our clipboards. We're just not allowed to read it out loud.

That door only swings one way, though. Your agent can usually give the appraiser useful information: recent sales, a list of upgrades, a note about the permitted addition. The appraiser decides what fits. Sharing facts is fine. Pushing for a number is not, and good appraisers will treat that call exactly the way you'd expect.

How sellers usually end up seeing it

In practice, sellers see the appraisal more often than you might expect, because the buyer shares it. Freddie Mac notes that sellers typically won't receive a copy, but they can ask the buyer for one.

The most common reason a buyer shares it: the value came in below the price. If the buyer wants a price reduction or wants to cancel under an appraisal contingency, the report is their evidence. Freddie Mac notes that if the appraisal comes in below the sales price, the buyer will likely share it to negotiate.

If the appraisal comes in at or above the price, the buyer has less reason to send it. You may never see it, and that usually means good news.

When it does get shared, ask for the whole thing. A single page with the final value tells you almost nothing. The parts that matter are the comparable sales the appraiser picked, the adjustment grid showing what each difference was worth, the condition and quality ratings, and the comments explaining the reasoning. That is where you find out whether the appraiser missed your new kitchen or simply used different sales than your agent did.

Does a California contract require the buyer to share it?

Mostly no. I checked the C.A.R. Residential Purchase Agreement (the 12/21 version). The paragraph that makes the buyer hand over inspection and investigation reports to the seller specifically leaves out the appraisal. So in the normal case, the buyer keeps it.

There are two exceptions worth knowing:

• The buyer cancels over a low appraisal. If the buyer cancels under the appraisal contingency, the buyer must deliver a copy of the written appraisal to the seller if the seller asks (paragraph 8B(1)).
• FHA and VA loans. The exclusion does not cover an appraisal received for an FHA or VA loan, so those go to the seller along with the other reports (paragraph 12E).

So if a buyer cancels on you because of the appraisal, ask for the report in writing. That is your right under the contract, and it is the only way to check whether the number holds up.

Contract forms are revised over time, and the answer depends on the exact form and version you signed. If there is real money on the line, ask your agent or a real estate attorney. I can tell you what an appraisal is. I can't tell you what your contract means.

What to do if the appraisal comes in low

If you hear the buyer's appraisal is short, here's a practical plan:

1. Ask for the full report in writing, through your agent. A summary of "it came in low" isn't enough to respond to.
2. Check the facts first. Square footage, bedroom and bath count, lot size, pool, garage, upgrades. Fact errors are the easiest fix.
3. Look at the comps. Are they the homes a buyer would really compare with yours? Did the appraiser miss a better closed sale?
4. Give the buyer evidence to send. Only the borrower can request a reconsideration of value through the lender. You can help by supplying closed sales and an upgrade list with dates.
5. Decide your negotiating position. Lower the price, split the gap, or hold. Your agent can walk you through the options in your contract.

Remember that one buyer's price is not the market, and one appraisal isn't automatically the final word either. Evidence is what moves a number.

Want a value you can actually see?

If you want to know before you list how an appraiser will likely see your house, you can order your own appraisal. Then you're the client, the report is yours, and nobody has to ask the buyer nicely. It won't replace the buyer's lender appraisal, but it shows you which sales matter, how your upgrades measure up, and whether your price has room. Facts first, then the list price. It is a lot less stressful to read bad news in your kitchen in February than in an escrow email in May.