How do I read my appraisal report?

First, figure out which report you are holding

If you are getting a mortgage, your lender has to give you a free copy of the appraisal. Under federal rules, that copy goes out promptly when the report is done, or three business days before closing, whichever comes first. You can waive the timing, but you still get the copy.

Next, look at the format. Appraisal reporting is changing. Fannie Mae and Freddie Mac are retiring the familiar forms (the 1004 for houses, the 1073 for condos, the 2055 exterior-only, the 1025 for 2–4 units and others) and replacing them with one dynamic report, the redesigned URAR. Freddie Mac says it is mandatory for all new reports submitted on or after November 2, 2026. Both formats are accepted during the 2026 transition before that date, so a 2026 report could be either.

The old form looks like a tax return that lost a bet. The new one is built from data fields, so its sections show up only when they apply. Either way, the reading order below works.

Read the last answer first: value, date and conditions

Skip to the reconciliation. That is where the appraiser weighs the evidence and states the opinion of market value. Right next to the value is the effective date, the day the value is as of. Value is a snapshot, not a forever number.

Then check the basis of the value. It will be one of these:

• As is: the house as it stood that day.
• Subject to completion: for new construction or work in progress.
• Subject to repairs: the value assumes certain repairs get done. Ask your lender what proof it needs that the work is finished.
• Subject to an extraordinary assumption: the appraiser assumed something specific that could not be confirmed.

A good reconciliation explains why the value landed where it did. It should read like reasoning, not a calculator taking an average. If the only explanation is "in my opinion," you have learned what the appraiser thinks, not why.

Check the facts about your house before you check the value

Most fixable errors live in the description of the property. Nobody knows your house like you do, so this part is your job. Look for:

• Address, legal description and parcel number
• Lot size, view and zoning
• Year built, effective age and room count
• Gross living area, the finished above-grade square footage
• Condition and quality ratings

Condition runs from C1 (brand new, never occupied) to C6 (damage serious enough to affect safety or soundness). Quality runs from Q1 to Q6 and describes how the house was built and finished. Under the new URAR, those scales stay the same but the definitions were rewritten for clarity, and interior and exterior get separate ratings. A spotless kitchen no longer has to share a grade with the peeling fascia.

If the report says three bedrooms and your house has four, that is a fact problem, and facts are the easiest thing to fix.

The sales comparison grid is where the value lives

The grid lines up your house against comparable sales (comps), meaning similar homes that sold nearby. Each comp gets a column with its address, distance, sale price and data source. Then come the adjustments.

An adjustment is a dollar amount added to or subtracted from a comp's price to account for a difference. If a comp has an extra bathroom and yours does not, the comp's price comes down. The goal is to answer one question: what would that comp have sold for if it were your house?

A few things to look for:

• Adjustments should reflect what buyers actually paid for a feature, not what it cost to build.
• The adjusted prices should land on both sides of the final value, a range that brackets your house.
• Large adjustments should come with an explanation.

On the new URAR, the grid is generated on the fly. Rows appear when they are required or relevant, and the appraiser can add rows for features that affect value. You will not see a row for a boat dock in a desert subdivision. Progress.

In my view, a report should teach you the market. Handing over a number is the easy part. The grid is where that teaching shows up, or does not.

The rest of the report, in plain English

Here is what the other parts are for:

• Contract: the purchase price, contract date and any seller credits. The appraiser reviews the contract, but the price does not set the value. One buyer and one seller is not the whole market.
• Neighborhood and market: boundaries, price ranges and whether values are rising, stable or falling.
• Cost approach: land value plus what it would cost to build the house, minus wear. Often optional for homes.
• Income approach: value based on rent. Rarely used for single-family homes. On the new URAR, market rent estimates go in a Rental Information section instead of the old separate rent form in most cases.
• Exhibits: photos, a floor plan sketch and addenda with commentary.
• Certifications: the appraiser's signature, license information and the assumptions and limiting conditions behind the report.

Read the comments. That is where a careful appraiser shows the work, and where a careless one hides from it.

What to do with what you find

1. List factual errors with proof: a permit, a floor plan, a listing sheet, photos.
2. Check each comp against the public record and the listing. Look for missed upgrades or a sale that included a seller credit.
3. Look for better comps that were available as of the effective date. Sales that happened later do not count for that date.
4. Send everything to your lender, not the appraiser. The formal route is a reconsideration of value (ROV). Under Fannie Mae rules you get only one borrower-initiated ROV per appraisal, and it has to happen before closing. FHA, VA and other loans have their own processes, so ask your lender how theirs works.
5. Keep it to facts. "My neighbor said it is worth more" is a feeling. A recent sale next door is evidence.

Disagreeing with a value is fine. Showing a better-supported one is what changes it.