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How to Read Your Own Appraisal Report

How to Read Your Own Appraisal Report

What Did That Appraiser Just Say?


If you’ve recently received a property appraisal report, you might be looking at it with a mix of confusion and curiosity. Between the grids, tables, codes, and industry jargon, it’s not always clear how your home’s value was determined—or why.


At Cade Appraisals Inc., we believe transparency and education are key. Whether you needed an appraisal for mortgage financing, refinancing, divorce, estate settlement, or selling your home, understanding your report helps you feel confident in the process and outcome.


This comprehensive guide breaks down the most common appraisal report format used in Canada—the full residential form (often referred to as AIC’s Form 101 or similar lender formats)—and explains each section line-by-line.

Let’s take the mystery out of your appraisal report—starting now.


1. The Cover Page: What It Tells You at a Glance

What you’ll find:

  • Subject property address

  • Client’s name (e.g., your lender, law firm, or you)

  • Appraiser’s name and contact info

  • Effective date of the appraisal

  • Report type (e.g., full report, short narrative, update)

  • Intended use and user (why the report was ordered and who can rely on it)

Tip: If you’re unsure whether you're the intended user, check this section. Appraisers are bound by CUSPAP (Canadian Uniform Standards of Professional Appraisal Practice) and can only discuss findings with the client or intended user.

2. Property Description Section

What you’ll find:

  • Legal description of the land

  • Type of ownership (freehold, leasehold)

  • Lot size (area in square feet or meters)

  • Property type (detached, semi-detached, townhouse, condo)

  • Year built and effective age

  • Effective age is not the same as the actual age. If you’ve updated your home, the effective age may be lower (e.g., a 1980 home with modern updates might have an effective age of 25–30 years).


3. Site & Neighbourhood

This section helps establish location-related value influencers.

Includes:

  • Zoning and land use compatibility

  • Topography (sloped, level, ravine)

  • Services (sewer, municipal water, gas)

  • Off-site influences (near a rail line, hydro tower, highway)

Neighbourhood notes:

  • Demand trend (increasing, stable, declining)

  • Supply trend (low, balanced, high)

  • External factors (schools, parks, industrial proximity)

SEO Note: These indicators directly relate to a home’s marketability. An appraiser uses them to understand buyer preferences and local economic drivers.

4. Improvements – Your Home’s Details

This is where your actual home gets detailed. Think of it as a property résumé.

Sections include:

  • Number of bedrooms and bathrooms

  • Total square footage (above grade)

  • Basement area and level of finish

  • Parking (garage/carport/driveway)

  • Heating and cooling

  • Quality and condition ratings (typically rated as Excellent, Good, Average, Fair, Poor)

Clarification:
  • Condition relates to how well your home has been maintained.

  • Quality reflects construction standard and finish level.

  • An older home in great condition may still have “average” quality if original features remain.


5. Comparable Sales Grid – Where the Value Comes From

This is the heart of the appraisal and the most misunderstood section.

You’ll usually see 3–6 properties in side-by-side columns, each compared to your home. Appraisers use adjustments to level the playing field—adding or subtracting value to reflect differences in:

  • Sale price

  • Proximity to subject property

  • Sale date

  • Lot size

  • Above-grade living area

  • Basement finish

  • Garage spaces

  • Renovations and upgrades

  • Market conditions

Example:If your home is 1,500 sq ft and a comparable sale is 1,700 sq ft, the appraiser may subtract value (e.g., $15,000) from that sale to make it comparable.
Line-by-Line Tip:Don’t panic if one comp sold for more than your home’s appraised value. The final estimate is a reconciled value based on multiple adjustments, not one sale.

6. Adjustment Commentary – Explaining the Grids

Here, the appraiser explains why certain adjustments were made and why a particular comparable sale was given more weight.

Common statements:

  • “Comp 1 was given greatest consideration due to proximity and similarity in condition.”

  • “Comp 3 is in superior condition and located in a more desirable pocket; downward adjustments were applied.”

Takeaway: This section shows the appraiser’s logic and can clarify any surprises in the value conclusion.

7. Final Value Estimate

Usually found in bold or boxed text, this section gives you the appraiser’s conclusion of market value, often expressed as:

“The estimated market value of the subject property, as of June 9, 2025, is $XYZ,000 (Canadian Dollars).”

You may also see:

  • Marketing time estimate (how long it would take to sell in current conditions)

  • Exposure time (how long the home would’ve been on the market before the value was achieved)


8. Limiting Conditions and Assumptions

This is the “fine print” but it matters.

Includes statements like:

  • The appraiser assumes all improvements are legal unless noted.

  • The report is based on a visual inspection only; no invasive testing was done.

  • The value assumes the property has no hidden defects (e.g., mold, asbestos).

Key Point: If the appraiser couldn’t access a certain area (like a locked garage or crawl space), they will note it here.

9. Addenda – The Supporting Evidence

This often includes:

  • Photos of the subject property (interior and exterior)

  • Photos of comparable sales

  • Aerial maps and zoning maps

  • Title information

  • Floor plans or sketches

These visuals help both lenders and homeowners see how the home was assessed and compared. If you're reading your own report, this is the best place to "fact-check" the analysis.


Common Homeowner Questions Answered


Q: My home is nicer than the comparables—why is the value lower than expected?A: Appraisers adjust for differences, but if your home is significantly superior to the neighbourhood norm, buyers may not pay extra. Over-improvement for the area can limit ROI.

Q: Can I contest the value?A: Yes. Provide recent, verifiable sales of comparable homes and explain why they’re more reflective of your property. Ask your lender if a reconsideration of value is allowed.

Q: The report has errors (e.g., wrong square footage). What should I do?A: Contact the appraiser (if you are the client/intended user), or ask your lender to forward the correction request.


Bonus: Visual Example of a Sales Comparison Grid

Feature

Subject Property

Comp 1

Comp 2

Comp 3

Sale Price

N/A

$715,000

$700,000

$730,000

Location

Maple Heights

Same

Same

Similar

Living Area (Sq Ft)

1,500

1,600 (-$10K)

1,400 (+$10K)

1,500

Basement Finish

Full

Partial (+$8K)

Full

None (+$15K)

Garage

2-car attached

2-car

1-car (+$7K)

2-car

Condition

Good

Good

Average (+$10K)

Excellent (-$10K)

Adjusted Price

N/A

$713,000

$727,000

$715,000

Final Estimate of Value: $715,000

Conclusion: Understanding Empowers Better Decisions

An appraisal report isn’t just a number—it’s a well-documented analysis backed by data and expertise. Whether you agree with the appraised value or not, understanding how that value was determined gives you an advantage as a homeowner, seller, or buyer.

If you’re still unsure about what your appraisal report says—or what it means for your future plans—reach out to Cade Appraisals Inc. We’re happy to walk you through it and help you understand the real story behind your property’s value.


Need help interpreting your appraisal report or planning value-boosting improvements?Contact Cade Appraisals Inc. today for professional advice, investor guidance, and CUSPAP-compliant reports across Niagara, Hamilton, and surrounding areas.

 
 
 

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