Appraisal Letter

[incognito]

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

NO​

What kind of report you have in file makes no difference whatsoever. It is the supporting data and research in your file that matters (even a summary report would not be adequate enough. Remember it is the data necessary enough to create a summary report, and you certainly do not include everything you use in developing a summary report IN A SUMMARY REPORT). It can be a sloppy mess of notes with coffee stains!

However, WHAT YOU HAND THE CLIENT must be USPAP compliant. A cover letter WILL NOT SUFFICE (unless it contains all USPAP SR 2-1, 2-2 (c) and 2-3 requirements for a restricted use report! . That is tough to do unless you write real small!

 

[Richard Carlsen]

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.

I would be interested in what kind of value you come up with. Since it is landlocked, without a deeded ROW or easement for access/egress, the land could not legally be used since you could not legally go on or get to the land. Therefore, if there is really no utility for the property, and with no utility along with no comps, you cannot give a value that is based on the definition contained in Market Value since there is no market. And with no market, no Market Value. Ummmmmmmmmm.....?

 

[Mztk1]

If you have Total the GPLND form (General Purpose Land) is a good one.

 

[Ariba]

I have a client requesting a letter appraisal for landlocked vacant land.

The only value the land has is probably limited to the adjacent property owners. Are any of them interested in purchasing the property? How are going about giving an opinion of value on this property?

 

[Walter Kirk]

Incognito,
Of course you are right. I meant to say prepare a summary report as you normally would (with a complete work file) but deliver only the cover letter.

I do lots of work for lawyers and they rarely read anything but the cover letter.

 

[The Warrior Monk]

I would be interested in what kind of value you come up with. Since it is landlocked, without a deeded ROW or easement for access/egress, the land could not legally be used since you could not legally go on or get to the land. Therefore, if there is really no utility for the property, and with no utility along with no comps, you cannot give a value that is based on the definition contained in Market Value since there is no market. And with no market, no Market Value. Ummmmmmmmmm.....?

It may or may not have a market value. That depends on a whole host of things that are dependent on the municipality that the property is located in. As an example, here landlocked parcels may not be able to be legally accessed, but they may have value attributable to transferring development and/or perc rights.

FWIW, my last RE sale was a landlocked parcel.

 

[Lee Lansford]

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

Walter, the "cover letter" that you reference...what exactly is contained in this "letter" (aka, report of the appraisal)?

Whatever "it" might be, "it" would have to conform (assuming that the work is subject to the USPAP and that the intent is to communicate the appraisal as Restricted Use) with Std. Rule 2-2 (c).

Lee

 

[Lee Lansford]

Incognito,
Of course you are right. I meant to say prepare a summary report as you normally would (with a complete work file) but deliver only the cover letter.

I do lots of work for lawyers and they rarely read anything but the cover letter.

Uh-uh.

Unless your "cover letter" conforms with Standards Rule 2-2, what you describe is not consistent with USPAP requirements.

 

[Howard Klahr]

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

That would be a USPAP violation - Std 2 Minium reporting requirements.

 

[Lee Lansford]

... 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.

"...then we do it."

Maybe.

Maybe not.

At the end of the day, the final decision for the SOW is that of the appraiser and can not be driven soley by the client's desires (at least according the the SOW Rule).