Appraisal Letter

[hammergator]

I have a client requesting a letter appraisal for landlocked vacant land. Is there a sample letter somewhere to follow so that I cover all the bases with USPAP and cover myself. There are no landlocked sales in the subject county. Thanks

 

[Lee Lansford]

When in doubt, consult the USPAP!

I have a client requesting a letter appraisal for landlocked vacant land. Is there a sample letter somewhere to follow so that I cover all the bases with USPAP and cover myself. There are no landlocked sales in the subject county. Thanks

See the current USPAP; see Standards Rule 2-2.

You have three reporting options: Self-Contained, Summary, Restricted Use.

Following your choice (after consulting with the client) of the reporting option, see the section of Std. Rule 2-2 that is applicable.

Easy, yes?

 

[incognito]

Remember however, that your file MUST contain ALL of the data and research necessary to complete a self contained report. Your Standard 1 responsibilities are the same no matter what method you choose to report it with.

 

[DWiley]

Actually, the workfile must, at a minimum, contain enough to produce a SUMMARY APPRAISAL REPORT (see lines 310-311, current USPAP)

 

[Mike Boyd]

Actually, the workfile must, at a minimum, contain enough to produce a SUMMARY APPRAISAL REPORT (see lines 310-311, current USPAP)

The standard land appraisal report form is easier to fill out and will CYA as far as USPAP is concerned. I would use that form but include a narrative to explain extraordinary limiting conditions.

 

[Caligirl]

This is the third post I've read about the old 'letter of opinion' which no longer exists. Who is ordering this stuff? Has someone hired all the retired loan officers who worked prior to USPAP?

 

[DWiley]

The standard land appraisal report form is easier to fill out and will CYA as far as USPAP is concerned. I would use that form but include a narrative to explain extraordinary limiting conditions.

That land form actually has a lot of USPAP deficiencies - no statement of intended use, no sales history, etc. Regardless of the format you pick, use the Chart in AO-12 to make sure you have all the required content.

 

[Bill_FL]

This is the third post I've read about the old 'letter of opinion' which no longer exists. Who is ordering this stuff? Has someone hired all the retired loan officers who worked prior to USPAP?

Yes. You would be amazed how many ask for them. You would be amazed how many appraisers do them.

 

[incognito]

Actually, the work file must, at a minimum, contain enough to produce a SUMMARY APPRAISAL REPORT (see lines 310-311, current USPAP)

You are correct DWiley, I stand corrected.

This is the third post I've read about the old 'letter of opinion' which no longer exists. Who is ordering this stuff? Has someone hired all the retired loan officers who worked prior to USPAP?

I'm not sure a "letter of opinion" ever really existed as a defined report type. In a perfect world, the clients would know what they wanted. However, lets face it, they are always going to want either a letter, form, or narrative. You and I know that none of those are acceptable technical descriptions of a type of report. That is the beauty of the Scope! We listen to their requests, write what they want in our scope (in proper language), let them approve it, then we do it.

 

[Walter Kirk]

Prepare a summery appraisal report for your file, send the client a cover letter containing your estimate of value.