§15.6 - What to Look for in an Appraisal Report

• Jurisdiction: Washington

§15.6 WHAT TO LOOK FOR IN AN APPRAISAL REPORT

The appraiser's analysis of data and conclusions are the core of the appraisal report. The opinion of highest and best use of the land and the property, the estimate of the land value, and the development of the applicable approaches to value (i.e., the sales comparison approach, the cost approach, and the income capitalization approach) are crucial to the quality and validity of the appraisal. These major parts of the appraisal report must be carefully and clearly reconciled into a logical final value estimate. The availability and presentation of sufficient comparative data is essential to the development of an accurate appraisal and preparation of an understandable appraisal report. Appraisal is the art of comparison and relies almost totally on comparison data gleaned from the real estate market to facilitate judgment of the competitive position of the subject real estate and ultimately its value. The complete appraisal report contains a realistic description and analysis of the qualities and characteristics of the subject property in relation to competitive and comparable real estate. Comparative judgments should be clearly presented, detailing the...