Yes

No

N/A

SCOPE OF WORK

Does the appraiser disclose the scope of work necessary to develop credible assignment results and identify the problem to be solved?  Are the following disclosed:

Client and any other intended users;

Intended use of the appraiser’s opinions and conclusions;

Type and definition of value;

Effective date of the appraiser’s opinions and conclusions;

Subject of the assignment and its relevant characteristics; and

Assignment conditions.

Neighborhood

Does the neighborhood section provide adequate understanding of locational factors, growth trends, housing supply, marketing time, price ranges, convenience to employment and amenities, property compatibility, appearance of properties, detrimental conditions vs. marketability.

Site

Has the appraiser commented on favorable and unfavorable site factors, such as:

Desirability of lot relative to the area;

Poor drainage, adverse easements or encroachments, flooding, or the like;

Size or dimensions of the lot;

Zoning requirements?

Improvements

Has the appraiser commented on favorable or unfavorable improvement factors such as:

Physical condition and needed repairs;

Age, construction, utility, size, equipment;

Effect of the above on marketability?

Do improvement descriptions match with photos of the subject properly?

Market Analysis (Comp Sales) Approach

Are all comparables from the same neighborhood?

If not, has appraiser explained why comps were selected from different neighborhood?

In your opinion, are comps really similar re:

Location

Site

Design and style

Quality and amenities

Size and utility

Are comp sales less than three months old?

If not, has appraiser explained by and do date of sale adjustments appear reasonable?

Are all comp sales of similar properties from subject neighborhood?

Are room counts and square footage of subject and comps similar?

Do sales prices and price/square foot of comps correlate and indicate comparability?

Are there large comp adjustments (25% or more as to comp sales prices and 10% or more as to single line adjustments relative to sale price)?

Are appraiser’s math calculations accurate?

In sum, are the adjusted value conclusions reasonably similar?

Does the final value conclusion relate to the adjusted comparables?

Yes

No

N/A

Cost Approach

Has appraiser used cost figures that are reasonable for the local market?

Do numbers for physical, functional and economic depreciation appear reasonable relative to:

Age

Condition

State of modernization

Size

Utility

Location?

Is land value estimate reasonable?

Are appraiser’s math calculations accurate?

Income Approach

Has the income approach been completed?

If not, has the appraiser commented on why not? (Regulatory requirements mandate all three approaches to value must be computed)

Does appraiser analyze income data correctly and reasonably?

Reconciliation

Does it appear that the appraiser “backed into’ any of the approaches to value?

Can YOU read the appraisal report, step by step, and arrive at the same value conclusion?

If appraiser uses computer generated data (canned in a word processor ), do the comments in the report appear reasonable and accurate?

Does it appear the appraiser is using the computer as a substitute for thinking?

Are the appraisers comments and final reconciliation of value adequate and does the appraisal give insight into the value and marketability of the subject property.

IS THE APPRAISER’S VALUE CONCLUSION REASONABLE?

Regulatory Compliance (14 Minimum Standards)

Conform to US PAP and appraisal should contain a certificate to that effect.

Disclose any steps necessary to comply with Competency Provision of USPAP-should

be none!

Appraisal is based on regulatory definition of market value.

Appraisal is written in narrative format or on forms, is sufficiently descriptive to enable reader to ascertain estimated market value AND the rationale for the estimate, and contains enough data and analysis to reflect complexity of the subject property.

Appraisal reports and analyzes all sales of subject property for the past 12 months.

If income producing one-to-four family real estate, appraisal must be based on current revenues, expenses, and vacancies for subject property.

Report and analyze a reasonable marketing period for subject property

It subject property is income-producing one-to four family real estate, appraisal must report and analyze current market conditions and trends which will affect projected income or the absorption period as these factors will affect value of property.

If residential property is proposed construction, or part of a tract development with unsold units, appraiser should report and analyze appropriate deductions and discounts, it any.

Yes

No

N/A

Appraisal report must include a certification by the appraiser that appraisal assignment was not based on a requested minimum valuation, a specific valuation or approval of a loan.

The appraisal report should contain sufficient supporting documentation presented so that the appraiser’s logic, reasoning, judgment and analysis in arriving at a final valuation indicates to the reader the reasonableness of the final market value.

The appraisal must include the legal description of the subject property.

The appraisal must identify and separately value any personal property or fixtures that are not real property BUT are included in the appraisal and discuss impact of their inclusion OR exclusion on the final estimate of market value.

The appraisal report should address the Comparable Sales, Income and Cost Approaches to market value, RECONCILE the three approaches and explain elimination of each approach not used.