An appraisal is an estimate of the value of a specific property. The appraisal report is a detailed description of the process the appraiser used to reach the estimated value he placed on the property.

Appraisals can be delivered as an oral report, a letter report, a form or a narrative report. Narrative reports are the most complete appraisal format. A typical narrative report will contain the following sections and information:

•  An introduction – which is used to establish the appraisal’s purpose and to state any limitations that may exist

•  A factual descriptions section – which may include: photographic identification of the property; area, city, neighborhood and location data; zoning and taxes data; site data; description of improvements; and history

•  A data analysis section that includes the appraiser’s opinions – items in this section may include: market analysis; highest and best use of the land, as though vacant; highest and best use of the property, as improved; land value; sales comparison approach; income capitalization approach; cost approach; and reconciliation of the value indications to a final value estimate

•  An addendum – that contains a detailed legal description; detailed statistical data; leases or lease summaries; and the appraiser’s qualifications

About Appraisale