Essential Elements of a Credible Appraisal
A credible appraisal report clearly identifies the objects appraised; the scope of work performed by the appraiser; the client and other intended users; and the intended use of the report. The appraisal report must also include the definition of value (e.g., fair market or replacement value), the effective date, and the subject object’s relevant characteristics.
The data and analysis required to support the opinion of value must be effectively communicated. There is no single standard appraisal report form, format, or style. Regardless of the type of appraisal report used, all reports must contain sufficient information to be credible and to enable the intended user to properly understand the conclusions.
Appraisal reports that are in compliance with USPAP will include
A detailed description of the item (may include photographs).
Methodology, analysis, and data used to provide a value conclusion and the rationale for value.
A signed certification that states the appraiser is not biased and does not have a present or prospective interest in the property.