Interviewing the Experts: Decoding Appraisal Reports with Anthony Young
When it comes to buying or selling a home, the appraisal can be one of the most critical — and misunderstood — parts of the process. A small oversight or miscalculation can cost clients thousands of dollars, making it essential for both real estate professionals and homeowners to understand how appraisal reports work.
I was fortunate to sit down with Anthony Young, certified real estate appraiser and creator of the Decoding Appraisal Reports course, to share his insights. Anthony teaches agents how to spot poor appraisal work, understand adjustment methods, and protect clients from costly mistakes.
In this Q&A, Anthony breaks down some of the most common appraisal concepts and misconceptions, and explains how agents and clients can work together to ensure accuracy.
Anthony Young: Every appraisal has an effective date — a specific point in time. Comparable sales (or “comps”) may have gone under contract weeks or months earlier, so I analyze whether the market changed during that period. Time adjustments can impact prices as much as +5% or -11% between the comp’s contract date and the appraisal’s effective date. An adjustment is necessary to reflect that change.
Anthony Young: If you overprice — say at $1.7M — and the home doesn’t sell, then drop to $1.6M and end up with offers back at $1.7M, the appraiser will question why it should be valued at the higher price when the market proved it didn’t sell there before.
Price to sell, not to test. Price slightly below market, not above. Buyers are informed and will skip overpriced homes. Expect negotiation, but not lowball offers if priced correctly. And remember, great presentation will help you compete as supply increases.
Anthony Young: Quality ratings matter a lot. They help distinguish between:
A 15–20-year-old home with no updates
An older home with recent upgrades
A property needing a full remodel
For example, a well-renovated older home can deserve a higher rating than a newer home without improvements. Realtors should communicate high-end and thorough work to the appraiser so it’s reflected in the valuation.
Anthony Young: If it’s free, you’re the product. Zillow is a lead generation company, not an appraisal service. I wouldn’t trust them for an accurate valuation of your home.
Anthony Young: A detached structure isn’t automatically an ADU. An Accessory Dwelling Unit must have its own kitchen and bath to function independently. Without these, it’s just a guest suite, studio, yoga room, or office.
Anthony Young: No — not as part of the Gross Living Area (GLA). Under Fannie Mae’s standard, any space even partially below ground is considered “below grade” and excluded from GLA. Finished basements can still add value, but only if supported by paired sales or regression analysis.
Anthony Young: FHA and International Residential Code require:
Window opening: at least 5.7 sq. ft. of net clear openable area, 24" high and 20" wide
Ceiling height: 7 ft. minimum in at least half the room
Room size: 70 sq. ft. minimum
Emergency egress: direct access to the outside without tools or keys (bars/screens must be removable)
Appraisal reports are more than numbers — they combine data, analysis, and professional judgment. As Anthony Young emphasizes, details matter: from time adjustments to quality ratings to below-grade space rules. For agents, understanding these nuances is essential to advocate for clients, avoid costly mistakes, and keep transactions on track.
By taking the time to “decode” appraisal reports, both agents and clients can move forward with confidence, knowing the valuation truly reflects a property’s worth.
About Anthony Young
Certified Real Estate Appraiser | National Educator | Keynote Speaker
📞 Phone: 925-999-0144
✉️ Email: [email protected]
🌐 Website: ValuedAudit.com
🔗 LinkedIn: Connect with Anthony
📸 Instagram: @Anthony_young_appraiser
Susanna Leung’s goal as a real estate professional with Haylen Group is to help her first-time home buying clients find that perfect home where their families can grow, thrive, and live their dreams in the United States. She applies her experience in remodeling, resource networking, negotiations, and advanced marketing to provide her clients with dedicated, full coverage service.
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