|A competent appraisal report has the following
elements contained in it:
- A cover document explaining in detail what type of value is
being sought ("purpose") and how the appraisal is to be used
("function" or "assigned use").
- The methodology and resources relied upon, including market
analysis and market(s) selected.
- A complete accurate description of property written in such a
manner that it can be identified without photographs.
- The date(s) and location of inspection, and the effective date
- A statement by the appraiser that he or she has no financial
interest in the property of that such interest is disclosed in the
- The appraiser's qualifications and signature.
Do not accept an appraisal if...
- It is handwritten or unsigned.
- The fee is based on a contingency or upon the value of the
- The appropriate "purpose" and "assigned use" are not stated.
- The item is beyond the appraiser's expertise.
- the appraiser is not willing and able to defend it in court
(subject to the appraiser's availability, and separate fee
Some essentials for every appraisal...
- Name and address of client requesting appraisal.
- Name of owner of property if different from above.
- "Effective" date of appraisal.
- Type of appraisal (i.e. fair market, retail replacement,
diminished value, etc.).
- Definition of the appraisal terminology.
- Intended use or purpose of the appraisal.
- Description of items including all pertinent information
necessary to distinguish appraised item from other like items.
- Condition of item (e.g. "as is", etc.) if applicable.
- Value of the items based on specified marketplace.
- Methodology used in determining value.
- Signature of person or persons who made the valuations.
- Statement of compliance to USPAP codes.
- A statement of any limiting conditions or assumptions, if