If you’ve recently received an appraisal report, you’re probably looking at several pages filled with unfamiliar terms, numbers, and real estate language. Whether you ordered the appraisal for a home sale, a divorce, an estate settlement, or to challenge your property taxes, one thing’s for sure—reading the report can feel overwhelming.
At Skyline Appraisal Services, we’ve helped hundreds of people understand what’s in their report, what it means, and how to use it. This guide is designed to walk you through a standard residential appraisal in plain language so you can feel confident reviewing your own.
Start with the Basic Property Information
The first page of the report opens with the essentials: the property address, legal description, and the type of appraisal being performed. You’ll also find the intended use of the report and who it’s for. This section confirms whether the appraisal is for a divorce case, an estate matter, a listing consultation, a tax appeal, or another purpose.
Pay close attention to the effective date of the appraisal. This is the date the appraiser is estimating the value of the home. In some cases, like estate appraisals or retrospective divorce appraisals, the effective date may be months or even years in the past.
Toward the bottom of that first page, you’ll find what most people are looking for right away—the appraiser’s opinion of value. This is the dollar amount the appraiser believes represents a fair market value for the property, based on the data and analysis included in the report. While it’s tempting to focus only on this number, it’s important to understand how the appraiser arrived at it.
Neighborhood Analysis and Market Trends
Further down in the report, you’ll find an overview of the neighborhood and local market. This section describes whether property values in the area are going up, staying the same, or declining. It will also describe how quickly homes are selling and whether the area is mostly owner-occupied or renter-occupied.
This section helps provide context. For example, if your home is in a neighborhood with limited inventory and rising prices, the appraiser will take that into account. If values are declining or market activity is slow, that can also influence the final value. This is particularly useful if you're pricing your home for sale, reviewing a value for divorce proceedings, or preparing to contest a property tax assessment.
A Closer Look at the Property Itself
Next, the report shifts to a detailed description of the home being appraised. This includes the year it was built, the style and layout, the quality of construction, and any major improvements or renovations. The report also notes things like the foundation type, roof, heating and cooling systems, and whether the home includes features like a garage, basement, porch, or deck.
Importantly, this section also details the condition of the property. The appraiser will describe whether it is in average, good, excellent, or below-average condition, and this evaluation plays a key role in how the property is valued. In situations like divorce or estate settlements, understanding how the condition was rated can help explain differences in opinion between parties.
Room Count and Square Footage
You’ll see the room count broken down by levels—how many bedrooms and bathrooms are above ground, and whether there are any finished areas below grade, such as in a basement. The gross living area, often abbreviated as GLA, represents the appraiser’s calculation of usable square footage above grade. This number is especially important for pre-listing appraisals and tax appeals, as square footage often drives value.
If your public records show a different number than the appraisal, this section is where the discrepancy may arise. The appraiser is using professional measurement standards, which may differ from the county’s method of calculation or previous estimates.
Understanding the Sales Comparison Grid
This is the heart of the appraisal for most residential properties. The appraiser selects several recent sales of similar homes in your area, known as comparables or “comps.” These properties are listed side by side in a grid and adjusted to reflect their differences from the subject property.
For example, if one comparable has an extra bathroom or a larger garage, the appraiser will subtract value to bring it in line with your home. If your home has features the comparable lacks—like a finished basement or a larger lot—value will be added. The appraiser applies these adjustments systematically to each comparable to determine what those homes would have sold for if they were more like yours.
Once all adjustments are made, the appraiser weighs the adjusted sale prices and reconciles them to arrive at a final opinion of value. If you’re using the appraisal in a legal or financial context, like a divorce or trust, this section can be critical in justifying the report’s conclusion.
Sketch and Photos: Supporting Details You Can See
Near the end of the report, you’ll find a sketch of the home and a full set of interior and exterior photos. The sketch is a to-scale outline showing how the appraiser measured the living area. It helps confirm that the square footage is accurate and that the layout is consistent with what’s described earlier in the report.
The photos offer visual evidence of the property’s condition at the time of inspection. They also include images of the comparable sales, giving you a better understanding of how those homes compare to yours in terms of appearance, features, and upkeep.
Market Conditions Addendum: Deeper Data on Trends
Many residential appraisals include a separate page summarizing market statistics. This addendum provides a snapshot of what’s happening in your area—how many homes are for sale, how long they’re staying on the market, and whether prices are generally trending up or down.
This information is especially helpful for clients preparing to sell their home, challenge a property tax assessment, or determine the timing of an estate settlement. It helps put your home's value into the broader context of the local market.
Final Comments and Certification
At the end of the report, the appraiser includes a summary of the process and signs the certification. This section affirms that the appraiser followed professional standards, that the report is their independent opinion, and that they personally inspected the property (if applicable).
If any assumptions were made—such as treating a converted space as finished living area, or assuming compliance with local codes—those notes will appear here. This section helps clarify the appraiser’s conclusions and limitations and can be especially important in legal proceedings.
Still Have Questions? We’re Here to Help.
Even with a clear report, it’s normal to have questions—especially if you’ve never read an appraisal before. You might wonder why a certain comparable was chosen, how square footage was calculated, or what influenced the final number.
At Skyline Appraisal Services, we don’t just deliver reports—we help clients understand them. Whether you’re preparing for court, planning to sell, handling a loved one’s estate, or simply want clarity around your home’s value, we’re happy to walk through the report with you.
Serving the Denver Metro Area with Appraisals You Can Rely On
Skyline Appraisal Services provides residential appraisals throughout the Denver area, including Arapahoe, Jefferson, Douglas, Adams, and Broomfield Counties. We specialize in divorce appraisals, estate and trust appraisals, tax appeal appraisals, pre-listing appraisals, investment property valuations, square footage verification, and PMI removal appraisals.
If you have an appraisal in hand and need help reading it—or if you’re ready to schedule a new one—we’re here to make the process simple and transparent from start to finish.