What is an appraisal report?

An appraisal report is a formal document that provides the appraiser's opinion of value regarding a specific property. It includes details about the methods used to arrive at that value, as well as the findings during the appraisal process. This comprehensive nature ensures it meets specific standards and requirements, making it a reliable tool for stakeholders such as lenders, buyers, sellers, and investors.

Such reports contain essential information, including property descriptions, analysis of comparable sales, and considerations for market conditions. The formal structure is crucial because it documents the appraiser’s methodology and thought process, lending credibility and reliability to the assessed value.

In contrast, market trend summaries and brief property histories lack the detailed analysis and formal documentation essential for a proper appraisal. Informal valuations communicated via phone do not provide the level of detail and legal standing necessary for many real estate transactions, further emphasizing the importance of a properly structured appraisal report.