Appraisals play an important role in real estate transactions, but privacy is always a concern. I have been asked many times if they have become part of the public record.
Home appraisals are never publicly available and are only shared with the appraiser’s client and authorized parties. This means that the general public cannot access your home’s appraisal report without permission first.
Appraisals contain sensitive information such as the property value, interior photos of the property, and names of people involved. Lenders, homeowners, and real estate professionals rely on these reports for various purposes, but they are always kept confidential. The confidential nature of appraisals protects the privacy of those involved in the transaction.
While appraisals themselves are not public, some related information may be accessible. For example, in many states, property tax assessments and sale prices are often part of the public record. These details can give a general idea of a property’s value, but they don’t provide the same level of detail as a professional appraisal.
Understanding Appraisals
Appraisals are used to determine a home’s value. They involve a careful assessment of various factors that affect a property’s worth, such as lot size, building size, condition, quality, and more. Most commonly, appraisals help buyers, sellers, and lenders make informed decisions about real estate transactions.
Purpose of Real Estate Appraisals
Home appraisals serve several key purposes, but the most common are:
- Determine the market value for real estate transactions
- Determine the fair market value for IRS-related purposes
- Resolve legal matters like divorces or estate settlements
The Appraisal Process
The appraisal process involves several steps:
- Property inspection
- Research of comparable sales
- Analysis of market trends
- Evaluation of property features
- Report Writing and Delivery
During the inspection, we look at the home’s size, condition/quality, and unique features. We take photos and measurements.
Next, we research similar properties that have sold recently. These comparables or “comps” help determine the home’s value in the current market.
The appraiser then weighs all factors to arrive at the appraised value. This figure represents the property’s fair market value.
The methodology of this valuation approach is based on the principle of substitution. Simply put, a buyer would not pay more for a house than they would pay for an equal substitute.
Role of the Appraiser
Appraisers play an important role in real estate transactions. They must:
- Be licensed professionals
- Follow strict ethical guidelines
- Remain unbiased and objective
- Use standardized methods to determine the value
Appraisers gather data from various sources. These include public records, MLS listings, and their own inspections/observations. They apply their expertise to interpret this data.
Their goal is to provide an accurate, impartial estimate of a property’s value. This helps protect all parties involved in real estate transactions.
Appraisal Reports and Confidentiality
Appraisal reports contain sensitive information that must be handled carefully. Confidentiality is a key part of the appraisal process.
Understanding the Appraisal Report
An appraisal report is a detailed document that gives an estimate of a property’s value. It includes data about the property, market conditions, and how the appraiser reached their conclusion.
The report has several parts:
- Property details
- Comparable sales
- Market trends
- Value estimate
The entire appraisal report is kept private. The only people who will see it are the appraiser, the client, and any authorized users of the client.
Ethical Obligations and Confidentiality
Appraisers must follow strict rules about confidentiality. The Uniform Standards of Professional Appraisal Practice (USPAP) sets these rules.
Key points about confidentiality:
- Appraisers can’t share report details with anyone but the client
- Appraisers can’t share assignment results with anyone but the client
- They must protect the client’s private information
- Breaking these rules can lead to serious consequences
The Ethics Rule in USPAP has a special section on confidentiality. It states that appraisers must keep assignment results private. They can only share this info with the client and other authorized users.
Appraisal Records and Public Access
Home appraisals are not public records, but some related information may be accessible. The details depend on the type of appraisal and who requested it.
Are Appraisal Records Publicly Accessible?
Most home appraisals are not open to the public. Banks and lenders keep these reports private. They belong to the person who paid for them.
This privacy protects homeowners’ personal information. It also keeps inaccurate data from spreading if there are mistakes.
But some property info is public. Tax assessments are available to view. These are different from private appraisals. The county tax assessor sets values for property taxes. Anyone can look up these records.
Exceptions and Considerations
FHA appraisals may be more open. These are done for government-backed loans. Some details might be shared with future buyers.
While the full appraisal stays private, some data feeds into public systems. This creates a link between private appraisals and public records.
Appraisal and Tax Assessments
Appraisals and tax assessments are two different ways to determine property value. While they serve different purposes, both play important roles in real estate transactions and local governance.
Appraisals are typically private evaluations of a property’s market value done by a licensed real estate appraiser. They are often required by lenders when someone applies for a mortgage. Home appraisals are not part of public records.
Tax assessments, on the other hand, are public records. County assessors conduct these assessments to determine property taxes. They often use a different method than appraisers and may not reflect an accurate market value of a property.
Tax assessors maintain and update assessment records. They also keep tax maps current and process applications for various tax exemptions and deductions.
Key differences between appraisals and tax assessments:
| Real Estate Appraisal | Tax Assessment | |
| Purpose | For lending and other various uses | For determining property taxes |
| Accessibility | Private | Public |
| Frequency | As needed | Annually |
| Methodology | Sales Comparables, Income, Cost | Mass valuation techniques |
While distinct, these two methods of valuation can sometimes inform each other. Appraisers may review tax assessments as part of their research, and assessors may consider recent appraisals when updating their records.
Appraisals may even be used to appeal property taxes in declining markets. I have done plenty of property tax appeals in San Francisco.
Frequently Asked Questions
Property appraisals involve complex privacy and accessibility issues. The following questions address common concerns about viewing appraisal records and reports.
Why is appraisal information not available to the public?
Appraisal information is not available to the public because appraisal reports are full of confidential information, and sharing this information violates USPAP.
How can one access the last appraisal information of a property?
Appraisal information is not public record. It is typically only available to the client who ordered the appraisal, usually the lender. Property owners may request a copy from their lender if they were the borrower for the appraisal.
Tax assessments, which are different from appraisals, are public record. These can often be viewed online through county property records websites.
Is there a public record of FHA appraisal reports?
FHA appraisal reports are not public record. They are confidential documents between the lender and the FHA. The FHA maintains an appraiser roster, but individual appraisal reports are not publicly accessible.
What is the process to view appraisal records in states like California, Florida and Texas?
Appraisal records are not publicly viewable in these states. County tax assessor records are public and can be accessed online or in person at county offices. These show assessed values for tax purposes, not private appraisals.
Do home appraisal reports remain confidential or are they accessible to the public?
Home appraisal reports remain confidential. They are not accessible to the general public. Only the client who ordered the appraisal, typically the lender, has the right to view the full report.
Are there any means for a seller to obtain insights from the property appraisal?
Sellers do not automatically have the right to see an appraisal ordered by a buyer’s lender. They may request a copy from the buyer, but the buyer is not obligated to share it. Sellers can order their own appraisal if they want insights into their property’s value.
Does a home appraisal eventually become part of the public domain?
Home appraisals do not become part of the public domain. They remain private documents between the appraiser, client, and any intended users specified in the report.
Even after a sale, the appraisal does not enter public records.
