The Appraisals Process

 The appraisal process has 8 steps: 1.Defining the problem 2.Planning work and preliminary inspections 3.Collecting data and analyzing it 4.Cost approach 5.Direct comparison approach 6.Income approach 7.Reconciliation and Final Estimate 8.Writing a report

 3 reports are issued: 1.Form Report  Standardized appraisal report that is normally used for residential property valuations  Used by financial institutes for mortgage applications etc., relocation companies and government agencies  The form consists of pre-printed data checklist that must be checked based on the structure  Length ranges from 2-3 pages for mortgage appraisal to 10+ pages for home relocation form

2.Narrative Report  Lengthy and takes time to produce  Not preferred by the public  Can be short reports with primary research/approaches to value (like a divorce action) to reports for court evidence to be used in litigation, or even for expropriation 3.Letter of Opinion  Not used anymore but takes less time to produce  It is based on opinion of appraiser and does not have any proof or verification about conclusions reached by the appraiser  It is not recommended since it is merely an opinion