Who Gets the Appraisal Report and How Can You Access It?

An appraisal report provides an estimate of a property’s value. This valuation is fundamental for various financial and legal purposes, including real estate transactions. It offers an assessment of a property’s worth, distinct from a listing price or a buyer’s offer.

Recipients in Mortgage Transactions

When a property appraisal is conducted for a mortgage, the lender typically initiates and pays for it. This makes the lender the initial recipient of the report. The appraisal is essential for the lender to assess the collateral securing the loan, helping determine the loan amount and interest rates.

Federal regulations ensure borrowers receive a copy of the appraisal report. The Equal Credit Opportunity Act (ECOA) mandates lenders provide a copy promptly upon completion, or at least three business days prior to loan closing, whichever occurs earlier. This allows review of the property’s valuation. Lenders must provide this copy even if the loan application is denied or withdrawn.

While the seller of a property does not directly receive the appraisal report from the lender or appraiser, they may gain access indirectly. The buyer can choose to share it with their real estate agent or the seller. This often occurs during negotiations if the appraisal value impacts the agreed-upon sale price or contingencies.

Recipients in Other Property Valuations

Beyond mortgage transactions, appraisal reports are necessary for various other property valuation scenarios. In estate planning or probate, the executor, administrator, or legal representatives of an estate typically commission and receive the report. This valuation helps determine asset value for inheritance, calculate potential estate taxes, and ensure fair distribution among heirs.

For divorce proceedings, an appraisal report provides an evaluation of marital property, important for equitable asset division. In these cases, either party’s attorney, or a court-appointed appraiser, may order the report, and both parties or their legal counsel receive access. The report can serve as evidence in court if disputes arise over property value.

Property owners who challenge their tax assessments often commission an appraisal. The property owner receives this report to present to the local assessment appeals board or relevant tax authorities. This independent valuation helps demonstrate if the assessed value is higher than the property’s actual market value.

In the context of insurance claims, if an appraisal is conducted for property damage, the policyholder and the insurance company are the recipients. This report helps determine the extent of loss and the appropriate compensation.

In these non-lending situations, the party who commissions the appraisal is the primary recipient. Other parties legally involved in the process, such as opposing counsel in a divorce or an insurance company in a claim, also receive access. This ensures all relevant stakeholders have the necessary information for their legal or financial processes.

Accessing Your Appraisal Report

As a mortgage borrower, your lender is required to provide you with a copy of the appraisal report. Lenders must deliver the report promptly upon its completion, or no later than three business days before the scheduled loan closing, whichever date is earlier.

If the report is not received within the expected timeframe, contact your loan officer or lender directly to request it. The report is provided at no additional charge, though the borrower pays the initial appraisal fee as part of closing costs. Many lenders provide the report digitally, often through a secure online portal or via email.

Review the appraisal report carefully upon receipt. The report contains information about the property and its valuation. While you can share your copy with others, such as your real estate agent, do so cautiously due to the sensitive property and financial details it contains.