- Joe Cornell
- March 13th, 2017
- Personal Property Appraisal
In this blog, you will find a list of some those items that are currently required to be in an Appraisal Report in order for it to be considered credible. (Additional items will follow.)
“Required” means that an Appraisal Report will fail the credibility test, if the required element is not present and properly presented, and not listed in the Table of Contents.)
Transmittal Letters are not a USPAP requirement but are highly recommended because they are a good tool to introduce yourself and the key information in regards to the Appraisal Assignment. Transmittal Letters should be a succinct summary of the essential elements of the Appraisal Report, and should include, at a minimum – the name of the client, the intended use and the intended users, the purpose of the Appraisal, the effective date and the date of the Appraisal, a brief description of the property being appraised, the type of value and the value definition, and the Value Conclusion. Based on circumstances, include brief verbiage of any other points that convey clarity and understanding. Signature required at end of letter. Executive Summaries are optional and if used, should contain similar information and be placed at the beginning of the body of the report.
Title Page (Required) This is a good place to put some basic information, if tastefully done, e.g., name of party retaining the Appraiser, name of the client, effective date, purpose of the appraisal, relevant value, date Report was prepared, Appraiser’s name, telephone number and address, etc.
Table of Contents (Required) Always a good idea; containing location of the 22 necessary elements in every credible appraisal report. Not required by USPAP, but highly recommended and required in appraisal reports submitted to the IAG for review. It should include, but not be limited to, all the items in this document labeled “Required.” To Be Continued…….