Getting an appraisal report can feel overwhelming if you have never looked at one before. It is full of charts, numbers, and real estate terms that might seem unfamiliar. But whether you are refinancing, selling, settling an estate, or dividing property during a divorce, this report plays an important role. Understanding what the report says can help you make confident decisions about your property.
If you are located in North Houston, especially in Harris, Montgomery, or Liberty County, this guide will help you make sense of the most important parts of the report.
Where to Find the Value
Let’s start with what most people want to know first: what is my home worth?
The appraised value is not on the cover page. To find it, go to the page titled "Sales Comparison Approach." This is usually about halfway through the report. Near the bottom of that page, you will find a box labeled "Indicated Value by Sales Comparison Approach." That is the number the appraiser is using based on recent home sales in your area.
Then, if the report uses other methods to double-check that value (like the cost or income approach), the final number will be confirmed again in a section called "Reconciliation." That section is usually right before the final signature page. It says what the appraiser believes is the most accurate estimate of the home's market value as of the date listed in the report.
Understanding the Neighborhood Description
Early in the report, the appraiser describes the neighborhood. This includes the type of housing nearby, general property values in the area, and whether the market is stable, declining, or improving. This matters because your home’s value is always influenced by what is happening around it.
In North Houston, for example, areas like Kingwood or Atascocita may have newer subdivisions with homes built in the last 10 to 20 years. In Liberty County, the properties might be more rural or have larger lots, which changes how the appraiser looks at value. Each of these neighborhood differences plays a part in the appraisal.
What the Report Says About Your Home
A section titled "Improvements" or sometimes "Subject Property" breaks down all the details about your home. This includes the total square footage, number of bedrooms and bathrooms, type of foundation, age of the home, and the condition of the interior and exterior. The appraiser also notes updates or remodeling work, if any.
If you recently replaced a roof or remodeled a kitchen, it may be listed here. If something looks wrong or is missing, this is a good place to double-check the report.
Comparing Your Home to Others
The "Sales Comparison Approach" page shows the heart of the appraisal. Here, your home is compared to several other homes (usually three to six) that recently sold nearby. These are called “comparable sales” or “comps.”
The appraiser lines up these homes side by side and makes adjustments for differences. For example, if your home has a pool but the other homes do not, the appraiser will adjust for that. If one of the comps is much smaller or located farther away, the appraiser will also adjust the value. These adjustments help the appraiser calculate a fair value for your specific home based on what similar homes have actually sold for—not just what they were listed for.
What if the Report Uses Other Methods?
Most appraisals for homes in our area rely mainly on comparable sales. But in certain cases, especially for new construction, rental properties, or unique homes, the appraiser might also include a Cost Approach or Income Approach.
- The Cost Approach estimates what it would cost to rebuild the home from scratch, minus depreciation.
- The Income Approach is used more often for rental or investment properties and estimates value based on potential rental income.
These sections are usually located after the Sales Comparison page. If they are included, they are usually brief and used as extra support, not the main source of value.
Questions That Often Come Up
Why wasn’t a nearby home used in the report?
Sometimes a nearby home sold under unusual conditions, like a foreclosure or family sale, or it was not similar enough in size or features.
Why is the value different from what I was told by a real estate agent?
Agents often give price suggestions based on what a seller hopes to get. An appraiser relies only on verified sales data and follows a strict process.
Can I ask for changes to the appraisal?
In legal situations like divorce or estate settlements, you can request a second opinion or ask for a review if something seems off. Be specific and provide supporting information if you believe something was missed.
Why Local Experience Matters
Every area in North Houston is different. Harris County has a wide mix of neighborhoods, from historic homes to new developments. Montgomery County has lakefront properties, gated communities, and expanding suburbs. Liberty County has rural acreage, custom homes, and sometimes unrecorded land improvements. These differences mean that reading and writing an appraisal report in North Houston is not one-size-fits-all. A knowledgeable appraiser who understands the local market makes all the difference.
Why Trust Dirkmaat Appraisal
At Dirkmaat Appraisal, we help homeowners, attorneys, and families across Harris, Montgomery, and Liberty counties make sense of their appraisal reports. We take the time to explain how the value was determined, what each section means, and how the report applies to your situation. Whether you are refinancing, going through a divorce, or managing an estate, we are here to help you understand the process every step of the way.