How to read a property appraisal report

To read a property appraisal report, start with the final value and its effective date, then work back through the property description, the approach to value used (usually sales comparison, cost, or income), the comparable sales and adjustments, and the assumptions and limiting conditions. Those parts tell you what the property is worth, how the appraiser arrived at it, and what the figure does and does not cover.

By Jose Dante Almeda Jr., PRC Licensed Real Estate Appraiser No. 11261 & Licensed Real Estate Broker No. 33179 · Last updated July 2026

Start at the conclusion, then check the workings

Every report from a licensed real estate appraiser in the Philippines states a final opinion of value and an effective date. Read those first. Value is tied to a specific date, so a report from months ago may no longer reflect the market. Then look at the purpose, since an appraisal for a bank loan, estate settlement, or court case may be framed a little differently.

The key sections, and what they tell you

• Property identification and description. Lot area, floor area, title details, classification, and location. Check these for accuracy first, because an error here moves everything else.
• Approach to value. Most residential reports use the sales comparison approach, valuing your property against recent sales of similar ones. The cost approach (land plus depreciated building cost) and the income approach (based on rent) appear for newer, unusual, or income-earning properties.
• Comparable sales and adjustments. This is the heart of the report. Look at which properties were used and how they were adjusted for differences in size, location, and condition. Strong, recent, nearby comparables give the most confidence.
• Assumptions and limiting conditions. The fine print stating what the appraiser assumed and what the report does not cover, such as hidden defects or title verification.
• Appraiser’s certification. The signature and PRC licence number confirm the report was prepared by an accredited professional.

What the report is, and is not

An appraisal is an opinion of market value on a given date, backed by evidence. It is not a home inspection, a title search, or a guarantee of a sale price. If a figure surprises you, the comparables section usually explains why. For more on the value itself, see the difference between zonal value and fair market value.

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