How do you document and report appraisal findings?

1 Scope of Work

The scope of work is the first section of your appraisal report, where you describe the extent and nature of your research and analysis. It should include the purpose and intended use of the appraisal, the property type and characteristics, the effective date of value, the type and definition of value, the market area and conditions, the appraisal methods and techniques, the data sources and verification, the assumptions and limiting conditions, and any supplemental information or disclosures. The scope of work should be consistent with the expectations of your client and the intended users of the report, as well as the requirements of the USPAP.

2 Data Collection and Analysis

The data collection and analysis section is where you present the factual information and evidence that support your value opinion. It should include the property description, the highest and best use analysis, the market analysis, and the three approaches to value: the cost approach, the sales comparison approach, and the income approach. You should explain how you collected, verified, and adjusted the data, and how you applied the appropriate methods and techniques to each approach. You should also indicate which approach or approaches you gave more weight to in your reconciliation process.

3 Value Opinion and Reconciliation

The value opinion and reconciliation section is where you state your final conclusion of value, based on the data collection and analysis section. It should include a summary of the results of each approach to value, and a justification of how you reconciled them to arrive at your value opinion. You should also explain any adjustments or contingencies that affect your value opinion, such as market conditions, financing terms, lease agreements, or environmental issues. You should make sure that your value opinion is credible, reliable, and consistent with the scope of work and the intended use of the appraisal.

4 Certification and Signature

The certification and signature section is where you attest to the quality and integrity of your appraisal report. It should include a statement that you have performed the appraisal in accordance with the USPAP and any other applicable standards or regulations, that you have no present or prospective interest or bias in the property or the parties involved, that you have personally inspected the property or disclosed otherwise, that you have used all the relevant information and analysis in your report, and that you have not delegated or misrepresented any part of the appraisal process. You should also include your name, license number, signature, and date of the report.

5 Addenda and Exhibits

The addenda and exhibits section is where you provide any additional information or documentation that support or supplement your appraisal report. It may include photographs, maps, sketches, floor plans, charts, graphs, tables, contracts, leases, deeds, surveys, market data, cost data, income data, or any other relevant material. You should label and reference each item in your report, and make sure that they are clear, legible, and accurate.

6 Review and Delivery

The review and delivery section is where you check and finalize your appraisal report before sending it to your client. You should review your report for any errors, omissions, inconsistencies, or ambiguities, and make any necessary corrections or revisions. You should also ensure that your report meets the format and content specifications of your client and the intended users, and that it complies with the confidentiality and record keeping obligations of the USPAP. You should deliver your report in a timely and secure manner, using the appropriate method and medium, such as mail, email, fax, or online platform.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?