Appraisal Report Formats

David Maloney wrote a very good article for the Appraisers Post on the proper structure and format for an appraisal report. Many appraisal organizations have their own report writing standards, but to be compliant with USPAP certain items of course must be included, but USPAP does not state how the style, form or structure of the reports should be, that is up to the appraiser and any report writing standards and formats dictated by appraisal groups.

Maloney discusses in some detail the difference between the two major styles of appraisal reports, the narrative and the form style. I also set up a poll for the type of reports appraisers are using, either narrative or form.  Visit the Appraisers Post to take the poll.

Maloney states:

There is no single approved format for all personal property appraisal reports, nor is there a required method of presenting information within the appraisal document. USPAP's STANDARD 8 states that USPAP does not "dictate the form, format or style of personal property appraisal reports, which are functions of the needs of the intended users and appraisers. The substantive content of a report determines its compliance [with USPAP]."

Appraisal reports typically contain a logical presentation of the required elements of information. Appraisers usually choose to prepare either a narrative letter-style appraisal report or a form-style appraisal report.

In a narrative letter-style report the appraisal has the look and feel of a formal letter on company letterhead complete with salutation, content, the USPAP certification statement, signature and enclosures.

In a form-style report the report is prepared in sections according to a pre-designed format, with each section appropriately titled and addressing the relevant elements of information it is designed to contain.

Regardless of which appraisal report form is used, in general terms, the appraisal report must contain three categories of information:

* Appraisal-specific information
* Item-specific information
* Supporting documentation

To read the balance of the article and other articles on appraising, click HERE.