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Appraisal.com Nationwide Appraisal Network: Appraisal
Requirements
For All Commercial Appraisals
As a condition of
payment and continued participation, the
following
requirements must be met by all appraisers on
each report produced for the Appraisal.com
Nationwide Appraisal Network. If you have any
questions about these requirements, please
contact the Appraisal.com Personal Commercial
Services Team at 716.332.5950 x123 or email
at pcs@appraisal.com.
General
(1)
The report shall meet and
conform to the current Uniform Standards of Professional
Appraisal Practice promulgated by the Appraisal Standards
Board of the Appraisal Foundation.
(2) The report must be produced in a manner that
is consistent with all applicable federal, state
and local laws.
(3) A statement must be included in the
Letter of Transmittal that the report is
prepared for the specified client in compliance
with the requirements of Title XI of the Federal
Financial Institution Reform, Recovery and
Enforcement Act of 1989 (FIRREA) and the Uniform
Standards of Professional Appraisal Practice.
(4)
The report must include a specific description
of the Scope of Work followed in the valuation
assignment, as per described in the current
Uniform Standards of Professional Appraisal
Practice.
(5) The report must
include a "Purpose of the Appraisal" that is
sufficient to produce credible assignment
results and does not violate the Appraisal.com
Terms of Use.
(6) Any "Intended Users"
included in the report must not prevent the
appraiser from producing credible assignment
results and do not violate the Appraisal.com
Terms of Use.
(7) Any "Limiting
Conditions" included in the report must not
prevent the appraiser from producing credible
assignment results and do not violate the
Appraisal.com
Terms of Use.
(8) The report must
meet all of the minimum
requirements set forth by Appraisal.com, as
described on this web page.
(9) The report must
comply with all reasonable requests made within
the special instructions section of the
appraisal engagement letter.
(10) The report must be
submitted on a typed or computer-generated (not handwritten)
document.
(11) The report must be
delivered to Appraisal.com as an Adobe Acrobat® PDF document or, if the appraiser is unable to deliver
the document as an Adobe Acrobat PDF document, the report
may be delivered by overnight courier to the Appraisal.com
Nationwide Appraisal Network (620 Main Street, Buffalo, NY
14202). Delivery by courier shall be at the appraiser's sole
expense and will cause the appraiser to incur a fee (see the
Appraisal.com
Terms of Use) for Appraisal.com to scan and upload the
document as an Adobe Acrobat PDF document.
(12) Unless instructed
otherwise within the order details, the report must
name the company who ordered it as the Client for
the report. If requested to do so by Appraisal.com
within 30 days of report delivery, the appraiser
must change the client name to reflect the correct
name. However, if the name change request is due to
a change of investor, the appraiser may charge a fee
of up to $100 to Appraisal.com.
Appraiser(s)
(1) The report must be
produced by the appraiser (or appraisal firm) the appraisal
assignment was sent to. The appraiser who produces the
report (or the supervisory appraiser, if state law allows)
must hold a current and valid state general appraisal
license.
(2) The report must
contain the signature of the appraiser (and supervisory
appraiser, if applicable) as well as the date of signature.
(3) The report must
contain the appraiser's (and supervisory appraiser's, if
applicable) State Certification (or License) number as well
as the expiration date of the State Certification (or
License).
(4) If an apprentice or
assistant produces the report, the supervisory appraiser
must also sign the report and date his or her signature. The
supervisory appraiser must indicate whether or not he or she
has inspected the subject property.
Subject Information
Unless otherwise agreed
upon in the Scope of Work, the
report shall contain
the following information pertaining to the subject
property:
(1) The report shall
include a description and analysis of the
subject property's immediate Neighborhood.
(2) The report shall
include a description and analysis of the
subject property's Market Area.
(3) Unless the location
of the property is described as "Rural", the
report shall include a description and analysis
of the subject property's City or MSA.
(4) The report shall
include a description and analysis of the
subject site.
(5) The report shall
include a description and analysis of the
subject building description and any other site
improvements that are present.
(6) The report discuss
the highest and best use for the site and
indicate whether or not the site is being
utilized at its highest and best use. If
the site is not being utilized at its highest
and best use, an explanation must be included.
(7) The report shall
indicate the current owner's name and examine
the ownership history of the subject property
for a period of at least 36 months prior to the
effective date of the appraisal report.
(8) The report shall
detail and analyze the current and historical
assessment and other tax data readily available
for the subject.
(9) The report shall
include a image a parcel (or plat) map that
clearly marks the subject property.
(10) The report shall
include a facsimile of the subject deed or a
reference to the deed book.
(11) The report shall
contain color photographs of the subject,
including:
(a) site photographs
(b) adequate exterior
(typically front, Rear, and street/access)
photographs of any site improvements
(c) adequate interior
(including, but not limited to, typical
apartments, kitchens, bathrooms,
customer-centric spaces, etc) photographs of any
site improvements
(d) any extraordinary
site features, maladies, or improvements not
covered by the above
(12) The report shall
include a color street map that demonstrations
the location of subject in relation to is
surrounding neighborhood.
(13) The report shall
include a sketch of the site improvements
including measurements used to determine or
confirm square footage used in the report.
(14) For multi-unit
improvements, the report shall include a sketch
of a typical unit.
(15) The report shall
include either the appraiser's analysis of risk
or a disclaimer indicating that said appraiser
was unable to determining the risk of the
following factors:
(a) The site's location
as a wetlands area, if applicable
(b) The site's flood risk
as determined by FEMA
(c) The site's
earthquake risk, if applicable
(d) Any environmental
hazards or risks made apparent to the appraiser
during their inspection of the site
Cost Approach
Unless otherwise agreed
upon in the Scope of Work, or unless deemed
irrelevant (with a suitable explanation) by the
appraiser for this particular property, the
report shall
contain the following information pertaining to the
cost approach:
(1) The report must
consider comparable land sales (minimum of 3)
with the following analysis:
(a) Describe basic,
relevant facts about each land sale used as a
comparison
(b) Discuss how the land
sales compare to the subject and by what
methodology adjustments are made
(c) Include a grid that
compares basic, relevant facts between the
subject and comparables chosen, including any
adjustments that appraiser elected to make
(d) Include color
photographs of each land sale
(e) Include a color map
noting the location of the subject and each
comparable selected
(2) The appraiser must
make best efforts to use comparables that meet
the following criteria. Should the
appraiser be unable to meet the following
criteria, they must include a an explanation
regarding why one of the criteria was unable to
be met. Comparables should:
(a) Geographically
surround the subject property, except where
bounded by undevelopable terrain such as oceans,
lakes, mountains, national parks, etc.
(b) Bracket the subject
in terms of size (both site and improvement),
sales price, and other relevant, quantifiable
criteria
(3) The report must
determine the land value of the subject
(4) The report must
determine the cost of improvements using the
most appropriate cost calculation methodology
for the subject's improvements.
(5) The report must
contain a value as determined by the most
approach and a discussion of the methodology
used to derive it.
Market Approach
Unless otherwise agreed
upon in the Scope of Work, or unless deemed
irrelevant (with a suitable explanation) by the
appraiser for this particular property, the
report shall
contain the following information pertaining to the
market approach:
(1) The report must
consider comparable sales (minimum of 3) with
the following analysis:
(a) Describe basic,
relevant facts about each sale used as a
comparison
(b) Discuss how the sales
compare to the subject and by what methodology
adjustments are made
(c) Include a grid that
compares basic, relevant facts between the
subject and comparables chosen, including any
adjustments that appraiser elected to make
(d) Include color
photographs of each sale
(e) Include a color map
noting the location of the subject and each
comparable selected
(2) The appraiser must
make best efforts to use comparables that meet
the following criteria. Should the
appraiser be unable to meet the following
criteria, they must include a an explanation
regarding why one of the criteria was unable to
be met. Comparables should:
(a) Geographically
surround the subject property, except where
bounded by undevelopable terrain such as oceans,
lakes, mountains, national parks, etc.
(b) Bracket the subject
in terms of size (both site and improvement),
sales price, and other relevant, quantifiable
criteria
(3) The report must
include a discussion of market trends in the
subject's market area.
(4) The report must
contain a value as determined by the market
approach and a discussion of the methodology
used to derive it.
Income Approach
Unless otherwise agreed
upon in the Scope of Work, or unless deemed
irrelevant (with a suitable explanation) by the
appraiser for this particular property, the
report shall
contain the following information pertaining to the
income approach:
(1) The report must
consider comparable income properties (minimum
of 3) with the following analysis:
(a) Describe basic,
relevant facts about each income property used
as a comparison
(b) Discuss how the
income properties compare to the subject and by
what methodology adjustments are made
(c) Include a grid that
compares basic, relevant facts between the
subject and comparables chosen, including any
adjustments that appraiser elected to make
(d) Include color
photographs of each sale
(e) Include a color map
noting the location of the subject and each
comparable selected
(2) The appraiser must
make best efforts to use comparables that meet
the following criteria. Should the
appraiser be unable to meet the following
criteria, they must include a an explanation
regarding why one of the criteria was unable to
be met. Comparables should:
(a) Geographically
surround the subject property, except where
bounded by undevelopable terrain such as oceans,
lakes, mountains, national parks, etc.
(b) Bracket the subject
in terms of size (both site and improvement),
sales price, and other relevant, quantifiable
criteria
(3) As appropriate, the
report should include a discussion of operating
income and expenses.
(4) As appropriate, the
report should include a rent roll analysis.
(5) As appropriate, the
report should include a vacancy analysis.
(6) As appropriate, the
report should include a capitalization rate
analysis.
(7) The report must
contain a value as determined by the income
approach and a discussion of the methodology
used to derive it.
Reconciliation
(1) The report must
discuss the reconciliation of the cost, market, and income
approaches.
(2) Unless otherwise
agreed upon in the Scope of Work, thereport must
provide a final opinion of market value.
(3) The report must
contain the effective date of the appraisal.
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