A real estate appraisal report is a written document prepared by a licensed appraiser that gives a professional opinion of a property’s current market value, based on its characteristics and local market data. Lenders, buyers, sellers, courts, and tax authorities use this report to make decisions about loans, sale prices, settlements, and other property-related matters.

Main purpose

• Estimate the property’s fair market value at a specific date so parties can decide how much to lend, pay, or accept.
• Provide an objective, third‑party view of value, reducing the risk that a property is over‑ or under‑priced.
• Support legal, tax, estate, divorce, or dispute resolutions where value must be documented.

What’s inside the report

Most appraisal reports include:

• Property description: location, land size, building size, layout, age, construction type, condition, and notable features or improvements.
• Neighborhood and market overview: area description, zoning, access to utilities, general market trends (rising, stable, or declining values).
• Comparable sales (“comps”): details of similar properties recently sold or rented nearby, with adjustments made for differences such as size, condition, or extra amenities.
• Valuation methods used: usually some combination of
  • sales comparison approach,
  • cost approach (what it would cost to rebuild, less depreciation),
  • income approach (for rental or commercial properties).
• Final value conclusion: the appraiser’s supported opinion of market value, often expressed as a single figure with an effective date, plus explanations and assumptions.

How it is used in practice

• Home purchase or refinance: lenders check that the property is worth at least the loan amount and may set loan size, terms, and conditions based on the appraised value.
• Pricing and negotiation: buyers and sellers compare the appraised value to the agreed price and may renegotiate if there is a large gap.
• Other situations: estate settlement, divorce property division, tax assessment appeals, and some insurance or business decisions.