By ScoutMyTool Editorial Team · Last updated: 2026-05-27
Introduction
An appraisal PDF lives or dies on the comparable-properties grid. The rest of the report is structural — subject summary, market analysis, reconciliation — and is mostly the same from job to job. The grid is where reviewers find arguments and where underwriters lose trust if the adjustments are not defensible. This is a companion to our appraiser primer, focused on building the grid and the narrative around it so the report passes review on the first pass.
Vocabulary, quickly
| Term | Meaning |
|---|---|
| Subject property | The home being appraised — top of the report |
| Comparable (comp) | A recently sold similar property used as a benchmark |
| Comp grid | Side-by-side table of subject + comps with adjustments |
| Adjustment | Dollar change to a comp's price to normalize differences |
| Reconciliation | Final narrative landing on the appraised value |
| Lender addendum | Extra forms the bank requires beyond the appraisal form |
| USPAP | Uniform Standards of Professional Appraisal Practice — governs format |
Step by step
- Build the subject summary first. Address, GLA, beds/baths, year built, lot size, condition rating. One page; this is the anchor for every comp comparison.
- Pull 3–6 comps from MLS. Closed sales within the last 6 months, within 1 mile, similar style and size. Wider radius or older sales need an adjustment note.
- Lay out the comp grid as a wide table. Subject column on the left, each comp as its own column. Rows: address, sale price, GLA, beds, baths, year, lot, condition, location, plus the adjustments.
- Adjust line by line. Every difference between subject and comp drives a dollar adjustment. Sign of the adjustment goes to the comp (not the subject).
- Total each comp's net + gross adjustment. Net = sum of signed adjustments; gross = sum of absolute values. Reviewers watch both.
- Land the adjusted sale price per comp. Sale price + net adjustment = indicated value per comp. The range across comps is the input to reconciliation.
- Write the reconciliation narrative. Why the final value landed where it did within the range — usually weighted toward the closest, most similar comp.
- Sign + seal + flatten. Embedded signature, license number visible. Flatten before delivery to lender so values cannot be edited.
Practical checklist before you send
- Limit comps to closed sales (not pending or under contract) within the most recent 6 months; older comps need an explicit market-condition adjustment with paired-sale support.
- Adjust toward the subject — a comp that is larger than subject gets a negative GLA adjustment because its sale price reflects the larger size. Signs go to the comp, not the subject.
- Watch net and gross adjustment percentages on every comp; net over 15% or gross over 25% needs an explanatory sentence in the comparable selection narrative or reviewers will flag it.
- Embed one front-elevation photo per comp on a thumbnail grid page so the reviewer can confirm the comp visually matches your description.
- Derive per-square-foot adjustments from local paired sales rather than copying a national average; defensible adjustments are local adjustments.
- Sign with an embedded certificate-backed digital signature plus your appraisal license seal as an image, then flatten the file so values cannot be edited downstream.
- For unusual subjects (lot, condition, view), expand the comp narrative paragraph rather than reaching for a more distant comp — explanation lets a wider radius pass review without question.
Related reading and tools
FAQ
- How many comps belong in the grid?
- Three to six. Three is the absolute minimum (Fannie Mae form 1004 requires three); six is a clean upper bound. More than six and the grid becomes hard to scan; fewer than three and reviewers question the support. If you have to reach for the fourth or fifth comp, that is fine and expected in unusual markets — just write a sentence in the comparable selection narrative explaining why.
- What is the right adjustment for a GLA difference?
- It varies by market — derive it locally rather than copying a national figure. Pull paired sales (similar properties differing only in GLA) and compute the per-square-foot difference. In active markets you can usually derive a defensible adjustment between $30 and $150 per square foot. Document the derivation in the report — reviewers expect to see the support, not just the number.
- Should I include comp photos in the PDF?
- Yes — one photo per comp, in a thumbnail grid on its own page. Reviewers want to confirm the comp visually matches your description. A single front-elevation shot is usually enough; aerial views help in rural or odd-lot situations. Keep image files small (under 500 KB each) so the report PDF stays under the lender's upload limit.
- How do I handle a comp that is geographically farther than ideal?
- Use it if the local market is thin, and write a one-sentence note in the comparable selection narrative explaining the distance choice (similar neighborhood, similar buyer pool, no closer alternatives). Apply a location adjustment if appropriate. Reviewers do not penalize wide-radius comps when the explanation is on the page; they penalize unexplained ones.
- What goes in the reconciliation narrative?
- Why the final value landed where it did within the range. Typical structure: identify the range of adjusted comp values, identify which one or two comps are the most weight-bearing (closest, smallest adjustments, most recent), then state the final value and why it sits where it does in the range. Two paragraphs is usually enough; one is too thin, four is overwriting.
- How do I sign and seal an appraisal PDF for the lender?
- Apply your embedded digital signature and your appraisal license number/seal as an image on the certification page. Most lenders accept a digital signature backed by a certificate; some still require a wet-signed scan. Confirm the lender's requirement before delivery. Flatten after signing so values cannot be edited downstream.
Citations
- Wikipedia — “Real estate appraisal — USPAP and report structure.” en.wikipedia.org/wiki/Real_estate_appraisal
- Wikipedia — “Comparables (sales comparison approach).” en.wikipedia.org/wiki/Comparables
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