What is an appraisal report?

An appraisal report is a formal document in which a state-licensed or certified appraiser gives an independent opinion of a property's market value as of a stated effective date. It describes the property and neighborhood, presents recent comparable sales with adjustments, and concludes with a single appraised value. Lenders use it to confirm the home is worth enough to secure the loan.

How long is a home appraisal good for?

For a conventional loan sold to Fannie Mae, the appraisal's effective date must be less than 12 months before the note date. If it's more than 4 months old, the lender needs an appraisal update (Form 1004D) confirming the value hasn't declined. Past 12 months, a new appraisal is required. Other lenders and loan programs set similar limits, so an old report generally can't be reused for a new loan.

What does a house appraisal consist of?

A residential appraisal has four main parts: a description of the subject property (address, size, age, rooms, condition, quality), a neighborhood and market analysis, a sales comparison grid of recent similar sales with dollar adjustments for differences, and the appraiser's reconciliation to a final value plus certification and signature. Photos, a location map, and a sketch are usually attached.

What is the difference between an appraisal and an assessment?

An appraisal is an appraiser's opinion of market value for a specific transaction, ordered by a lender or owner. An assessment is the value a county or municipal assessor assigns for calculating property tax. Assessments are done in bulk, often lag the market, and may be a set percentage of market value, so the two numbers frequently differ by a lot.

What is the difference between appraised value and market value?

Market value is the price a willing buyer and seller would agree on in an open market. Appraised value is one appraiser's professional estimate of that number, based on comparable sales and the property's characteristics, as of a specific date. In practice the appraised value is what the lender treats as the home's value, even when a buyer has agreed to pay more or less.

How long should I keep an appraisal report?

Keep it for as long as you own the home and for at least 3 years after you sell. The IRS wants records that establish your home's basis kept until the period of limitations for the year of sale expires. Before that, the report is your evidence of 'original value' for cancelling PMI and useful for tax appeals, insurance claims, estates, and divorce settlements.

Property

Home Appraisal Report

A home appraisal report is a licensed appraiser's written opinion of what a property is worth as of a specific date. Lenders order one before approving a mortgage or refinance. The report describes the home, compares it with recent nearby sales, and states a final appraised value that the loan amount is based on.

For a first-lien mortgage, your lender must give you a free copy of the appraisal promptly after it's completed and no later than three business days before closing.

Source: CFPB: Do I have the right to receive a copy of my home appraisal?

Written & maintained by the Granite team · Last updated September 2026

Overview

A lender orders the appraisal, usually through an appraisal management company, and the borrower pays for it as a closing cost. A state-licensed or certified appraiser inspects the property (in person, from the exterior, or from a desk using third-party photos), researches recent comparable sales, and writes up an opinion of market value. Most residential reports use Fannie Mae's Uniform Residential Appraisal Report (Form 1004), though desktop and hybrid products like ValueNet follow the same structure.

An appraisal is not an inspection and not a tax assessment. A home inspection lists defects and says nothing about value. A tax assessment is the county's number for calculating property tax and is often far from market value. The appraisal is the figure the lender actually underwrites against, and federal rules require the lender to give you a free copy.

When you’ll get your Home Appraisal Report

You're buying a home with a mortgage and the lender ordered an appraisal
You refinanced or took out a home equity loan or HELOC
You asked your servicer to cancel private mortgage insurance (PMI)
You're settling an estate, a divorce, or a buyout between co-owners
You're appealing a property tax assessment or documenting a casualty loss
You ordered one yourself before listing or to price a for-sale-by-owner deal

What’s on your Home Appraisal Report

These are the fields Granite reads and extracts automatically the moment you upload one.

Property Address & Parcel: The subject property's street address, county, and tax parcel number.
Effective Date: The 'as of' date the value opinion applies to. Lenders measure the report's age from this date, not the signature date.
Appraised Value: The appraiser's final opinion of market value. This is the number the loan-to-value ratio is built on.
Appraiser, License & Firm: The signing appraiser's name, state license or certification number, and company. Sensitive: the license number is treated as private data.
Client / Lender & Borrower: Who the report was prepared for (the lender or its valuation arm) and the borrower or owner of record.
Report Date, Report Number & Loan Number: When the report was signed, the appraiser's or AMC's file number, and the lender's loan ID. Sensitive: the loan number is treated as private data.
Report Form & Inspection Type: Which form or product was used (URAR Form 1004, Form 2055, desktop, hybrid) and whether the appraiser saw the interior, the exterior only, or relied on a third-party inspection.
Property Characteristics: Property type, year built, gross living area, lot size, bedrooms, bathrooms, and total rooms.
Condition & Quality Ratings: The UAD condition (C1–C6) and quality (Q1–Q6) ratings that drive comparable adjustments.
Comparable Sales: Each comp's address, sale price, sale date, distance from the subject, and living area. This grid is where the value comes from.

How long to keep it

Keep the appraisal report for as long as you own the home, plus at least 3 years after you sell.

For lending, the report has a short shelf life: Fannie Mae requires an update once the effective date is more than 4 months old and a brand-new appraisal once it passes 12 months. But the document keeps working for you long after that. The IRS says to keep records that establish your home's basis until the period of limitations expires for the year you sell, which is generally 3 years after you file that return. The appraised value at purchase or refinance is also the 'original value' your servicer uses to decide when you can cancel PMI, and the report is ready-made evidence for a property tax appeal, an insurance claim, an estate, or a divorce settlement.

How Granite handles your Home Appraisal Report

Granite recognizes an appraisal report on upload, whether it's a full URAR Form 1004 or a desktop ValueNet product, and pulls out the property address, effective date, appraised value, appraiser and license, lender, borrower, property characteristics, condition and quality ratings, and every comparable sale. It files the report with the property's other records (deed, survey, settlement statement, tax statements), keeps the license and loan numbers private, and makes the whole thing searchable. When your servicer asks for the original value to cancel PMI, or your accountant asks what the house was worth the year you refinanced, the answer is one search away.

FAQ

Home Appraisal Report: common questions

What is an appraisal report?: An appraisal report is a formal document in which a state-licensed or certified appraiser gives an independent opinion of a property's market value as of a stated effective date. It describes the property and neighborhood, presents recent comparable sales with adjustments, and concludes with a single appraised value. Lenders use it to confirm the home is worth enough to secure the loan.
How can I get my appraisal report?: For a first-lien mortgage, federal rules give you the right to a free copy. Your lender must send it promptly after the report is completed and no later than three business days before closing. If you didn't receive one, ask the lender or loan officer directly; you don't have to pay again or request it from the appraiser.
How long is a home appraisal good for?: For a conventional loan sold to Fannie Mae, the appraisal's effective date must be less than 12 months before the note date. If it's more than 4 months old, the lender needs an appraisal update (Form 1004D) confirming the value hasn't declined. Past 12 months, a new appraisal is required. Other lenders and loan programs set similar limits, so an old report generally can't be reused for a new loan.
What does a house appraisal consist of?: A residential appraisal has four main parts: a description of the subject property (address, size, age, rooms, condition, quality), a neighborhood and market analysis, a sales comparison grid of recent similar sales with dollar adjustments for differences, and the appraiser's reconciliation to a final value plus certification and signature. Photos, a location map, and a sketch are usually attached.
What is the difference between an appraisal and an assessment?: An appraisal is an appraiser's opinion of market value for a specific transaction, ordered by a lender or owner. An assessment is the value a county or municipal assessor assigns for calculating property tax. Assessments are done in bulk, often lag the market, and may be a set percentage of market value, so the two numbers frequently differ by a lot.
What is the difference between appraised value and market value?: Market value is the price a willing buyer and seller would agree on in an open market. Appraised value is one appraiser's professional estimate of that number, based on comparable sales and the property's characteristics, as of a specific date. In practice the appraised value is what the lender treats as the home's value, even when a buyer has agreed to pay more or less.
How long should I keep an appraisal report?: Keep it for as long as you own the home and for at least 3 years after you sell. The IRS wants records that establish your home's basis kept until the period of limitations for the year of sale expires. Before that, the report is your evidence of 'original value' for cancelling PMI and useful for tax appeals, insurance claims, estates, and divorce settlements.

Sources

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