Appraisals

written-appraisal-report

Most appraisals are reported in writing, although in certain circumstances, an appraiser may provide an oral appraisal. An appraisal is a two-step process 1) the development of the value conclusion and 2) report of the appraiser’s findings. In step one, the developing of a value conclusion, the appraiser must complete the same level of work no matter how that conclusion is reported in the second step. Depending on the client's need, there is an opportunity for some savings depending on the report format used.

A written appraisal report generally consists of:

  • Scope of work, which defines the problem to be solved and the work necessary to complete;
  • a description of regional and neighborhood factors that may influence the property;
  • a description of the property and its locale;
  • an analysis of the highest and best use of the property;
  • an analysis of cost, sales and/or leases of comparable properties; and
  • information regarding current real estate activity and/or market area trends.

New Report Options Effective 2014

Prior to changes in the Uniform Standards of Professional Appraisal Practice (USPAP) that became effective January 1, 2014, there were three options in reporting appraisals: self-contained, summary and restricted use. As of 2014, the Self-Contained Appraisal Report is no longer a reporting option, essentially leaving only an Appraisal Report (formerly Summary Appraisal) and the Restricted Appraisal Report (formerly Restricted Use).

Duncan & Brown will continue to tailor its reports to meet or exceed our clients' requirements as to level of detail and discussion about facts and analyses. As a result, we have developed internal standards for varying appraisal report formats that differ in depth and detail and still continue to be USPAP compliant. Below is a list of the different report formats offered by Duncan & Brown, along with a  comparison to the previously offered report formats prior to the 2014 USPAP changes.

     Report Formatting Comparison Chart

Please contact Duncan & Brown if you have any questions concerning the appraisal process, the new appraisal report options or to obtain a fee quote for a specific property.

 

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