Who Owns the Appraisal Report? Understanding Client Relationships in Home Valuations

When The Bank Orders The Appraisal

Homeowners often wonder why they cannot get a copy of a home appraisal when they paid for it. The answer depends on who ordered the appraisal in the first place. There are two common scenarios - when the bank orders an appraisal for a mortgage loan or when the homeowner directly orders their appraisal.

In the first case, the bank hires and pays an approved appraiser to determine an opinion of the home’s value. Although the homeowner funds this payment through their loan application, the bank is technically the appraiser’s client. Appraisers must uphold confidentiality standards, sharing their reports only with the client (the bank) and authorized parties. Legally, banks must provide homeowners with a copy of the finished appraisal.

Appraisers cannot directly give copies to homeowners. Their code of ethics only allows sharing the appraisal results with the client and permitting parties. For mortgage appraisals, that client is the lending bank, not individual homeowners.

When Homeowners Order Appraisals

The rules differ slightly when homeowners order their private appraisals outside of mortgage loans. Common private appraisal purposes include pre-listing opinions, PMI removal, estate planning, divorce, bankruptcy, appeals, and more.

Here, the homeowner hires and pays the appraiser directly. As the homeowner directly engages the appraiser for the service, the homeowner becomes the client. Confidentiality standards remain, but the appraiser can share the full report only with the client (now the homeowner) unless otherwise permitted.

Mortgage lenders retain sole ownership of appraisals they order, although laws grant homeowners access too. For private appraisals, homeowners are both clients and recipients. But in all cases, appraisers cannot exceed confidentiality bounds, protecting the appraiser-client relationship. Understanding the client distinction explains why buyers cannot always get copies of bank-ordered reports.