What to Expect In My Appraisal Report

My appraisal reports are usually written as a summary letter. The following headings will be found in most of my appraisal reports. The headings address the basic questions to be answered, and problems to be solved, in order to generate the opinion of value. I strive for excellence and best practice. I want my appraisal reports to be clear, understandable, and hopefully interesting. Sometimes to achieve perfect legal clarity, the writing may not be all that interesting.

First there is a Title Page that states that this is: "Appraisal Report on a book, map, document, archive, or collection of books, belonging to the identified owner.

Of course I always DATE the report.

I put down my own legal identification:

John V. Henley LLC
4715 NE 13th Ave.
Portland, Oregon 97211
Federal Employment Number: ******
Oregon Business License: *******

On the next page I put another title: "Appraisal Report on the ....belonging to...."

There is always a paragraph that contains a Definition of Problem, Identification of Client and Intended User, Effective Dates of the Appraisal, Legal Identification of Relevant Characteristics of Property Appraised

Essential to every appraisal are the stated Assignment conditions, which usually determine the Scope of Work and may involve Extraordinary or hypothetical assumptions. These assumptions must be stated clearly and I believe, up front. If I am going to focus on one particular application of value, which will determine a methodology, I will usually state so here. But not always.

I then like to address: Data Collection, the general market, subject property data, and comparable data. I usually state here that this is a summary or detailed report.

I then perform Data Analysis, Market analysis, Supply studies, marketability and the highest and best use, if applicable.

I always discuss the Application of the Approaches of Value and Reconcile them to the assignment conditions and discuss any concerns I may have regarding these values. I always discuss the three applications to the approach of value.

Last but not least, I state in its own paragraph: the defined value, which is my opinion of value based on my examination of the items and my analysis and research of the data.

I always include the following "Conditions and Terms" at the end of each appraisal. Sometimes the conditions and terms may vary, depending upon the assignment conditons. Sometimes I may be asked to authenticate an item and that will change the language in the condtions and terms. The Certification ordinarily rarely changes. However, I have sometimes performed an appraisal and used assistants to help me perform research, perform analysis, or in some way share an expertise in a given area. I will state clearly throughout the report and in the Certification whatever help I have had and whoever helped me. In some cases, that person may actually help me in the appraisal process and will sign the appraisal report, too.

"Conditions and Terms of This Report

The values expressed are based on the appraiser’s best judgment and opinion and are not a representation or warranty that the items will realize that value if offered for sale at auction or otherwise. The values expressed are based upon current information on the date made and no opinion is expressed as to any future values.

Unless otherwise stated, values expressed are based on the general expertise and qualifications of the appraiser as to the purpose and assignment conditions.

Should, in conjunction with this appraisal, additional services of the appraiser be requested by the client, his agent or attorney, or the court (such as for added time researching other value purposes, pretrial conferences, court appearances, depositions, court preparations, etc.), compensation for same shall be at the customary hourly rate charged by the appraiser at the time and shall be due and payable by the client immediately upon receipt of a statement for said work.

Unless otherwise noted, estimates of value are based only on visual inspection with no tests of any kind having been conducted, unless so stated in the assignment conditions and defined in the scope of work.

Measurements are determined under “field conditions” and are, therefore, approximate.

Unless stated elsewhere, this appraisal is based only on the readily apparent identity of the items appraised, and, no further opinion or guarantee of authenticity, genuineness, attribution or authorship is made. If the assignment conditions and resulting scope of work entail an investigation as to authenticity, genuineness, attribution or authorship, it will be so stated under “Scope of Work.”

The appraised values are based upon the whole interest and possessory interest of the client, undiminished by any liens, fractional interests or any other form of encumbrance or alienation. This appraisal is not a certificate of title of ownership. The identification of the interest of the client has been represented to me by the client and no inquiry or investigation will be made nor is any opinion to be given as to the truth of such representation.

With the exception of my client, possession of this report or its copy does not carry with it the right of publication, nor may this report be used for any purpose by anyone other than my client or his agent without my previous written consent. If this report is reproduced, copied, or otherwise used, it must be done so in the report’s entirety including the cover document and all attachments. Furthermore, no change to any time is this appraisal shall be made by anyone other than me or at my direction, under my direct supervision, to an employee or partner in this firm.

All the information in this appraisal is confidential. I retain a copy of this document along with my original notes, and I will not allow others to access these records without your written permission unless so ordered by a court of law."

Signature and Date of Report

This is one of the most important parts of the appraisal. I sign this separately and this is as a sworn statement in court.

"Certification

I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.

I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

My engagement in this assignment was not contingent upon developing or reporting predetermined results.

My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

The use of this report is subject to the requirements of the Uniform Standards of Professional Appraisal Practice. I can furnish proof of having passed an examination on the contents of these principles.

I have made a personal inspection of the property that is the subject of this report.

No one provided significant real property appraisal assistance to the person signing this certification.

Certification Signature"

In some cases, I will furnish my credentials and resume along with the report Ordinarily, I have already provided it to my client to encourage them to use my services. I will gladly furnish my curriculum vitae to anyone.