FREE 10+ Land Appraisal Report Samples in PDF

A home appraisal report usually has a few components:

• The estimated fair market value of the property: The key figure in a residential appraisal report is the appraised value conclusion, which is a specific number that an appraiser settles on after a detailed analysis of the home’s features and recent sales in its surrounding market, working within the Uniform Standards of Professional Appraisal Practice (USPAP) and stamped with an effective date.
• Approach to fair market value: The appraiser also details which approach they used to come to the final number. Standard methods include the market data or sales comparison approach (which considers comparable sales of similar properties in the area), the cost approach (which factors in the cost of improvements), and the income approach (which factors in the potential revenue from rental properties).
• Property overview: A home appraiser will include several details about the residential property, such as the age, location, square footage, recommended occupancy, floor plan, living area, number of bedrooms and bathrooms, design and quality of construction, heating and cooling systems, landscaping, type of ownership (usually either fee simple or leasehold). An appraiser will not consider moveable pieces of personal property (like furniture) in their appraisal. In some instances, the appraiser may need to make certain assumptions about the property—for example, if construction is still underway, the appraiser can assume the value of the finished property (called a hypothetical condition). If the home is vacant and the utilities are turned off, the appraiser can assume they work (called an extraordinary assumption).
• Issues: Along with the various features of the real property, which refers to land and immovable assets attached to the land, like homes or buildings, an appraiser will include any issues that they come across during the walkthrough, including structural problems, abnormal depreciation due to lack of upkeep, or design defects.
• Summary of local market trends: Home appraisers stay informed of local and national market area trends to estimate a home valuation within the broader context. Most appraisal reports will include a brief overview of comparable properties, relevant public records, and local market analysis to help the lender better understand how the subject property fits in. This section includes whether the appraiser considers the home to be the “highest and best use” of the particular property’s zoning.
• Other considerations: Where relevant, appraisers will include further details or limiting conditions that may affect the home’s estimated value—for instance, easements or encroachments. In many cases, when there’s not sufficient room to include specific details, appraisers may attach them to the report as an addendum.

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