How Do You Describe The Subject Property?

[Alan Simmons]

I consider myself a minimalist appraiser (believing it is harder to adequately describe something using only one word than a thousand words).

Several years ago out of frustration with a specific UW I started including what I called a “DA Page” in my reports. At the time this was a derogatory term referring to a specific client. The DA Page was basically a quick narrative that revisited details concerning the subject, market, and comparables (that were available on the URAR). For some unexplainable reason this seemed to make the client think that the report was more comprehensive. WHAT A DA!

I still include the page today because overall silly UW requests noticeably dropped and a couple of highly sought after clients started sending me business. I do not know if the page actually satisfied clients’ wants, was a coincidence or just karma.

Is the DA Page necessary to my report? NOT AT ALL! But I think it helps some readers understand my URAR better. Personally my goal is to one day do away with the page as it adds inefficient overhead to my reports.

 

[Robert Anderson]

It's important to remember that the level of detail in a report should vary to a certain extent depending on the intended use and user of the appraisal. If the appraisal is being done for a lender for use in connection with a proposed loan, then a detailed and perhaps repetitive description of the subject property in a comment addendum is probably not needed or wanted. On the other hand, if the appraisal is being done for an out-of-state buyer who will use the appraisal to help in a purchase decision, then a detailed description of the subject property (such as Ryan's) may be appropriate.

 

[liznindy]

Amen, Robert.

I have to admit, my eyes were glazing over when reading some of these posts....No offense... just wondering if the client and intended user is reading all as well.

I typically reference the quality of construction, updates and/or repairs needed (if any), and may hit highlights such as custom features. Depreciation and functional problems, if any, are also addressed.

However, I don't restate the design, floor coverings, appliances, etc. as these are covered in the descriptive portion of the URAR.

At the beginning of my appraising days, I DID go into greater detail (pre 2055 days) for each appraisal, but now I typically describe only special features, though I typically make an exception when appraising homes at the upper end of the pricing spectrum (these have MORE special features).

Approximately 30% of my appraisal work is review work. I WOULD like to see more specific comments on condition, features, and such. The majority of appraisals I review, have only generalizations which could describe ANY home and sometimes have canned statements which DO NOT apply to the subject (sloppy proofreading, I guess).

SO, I would say to err on the side of too much specific information, when describing the subject.

 

[Rudy Canoza]

Since the form has areas to identify features, material types, and condition, I use the comment section to encompass those elements of the subject property that need explanation. Such as remodeling, room additions, or a discrepancy between the improvement size as measured and the assessor's data.

I was trained to be succinct and not verbose...I must admit though, my wife calls me redundant in the report most of the time...

 

[TC]

Worked for a guy that wanted everything to say "see addendum", windows, see addendum, landscaping, see addendum. Just plain nuts. We lost some clients who were tired of "paying by the pound". I stick to the form unless there are some extraordinary conditions.


TC

 

[wyecoyote]

Impressive Ryan,

The detail and clarity probably speaks for itself with respect to the UAPAP concerns about developing and reporting in a way that is not misleading and that alone is probably sufficient to justify this type of explanation.

Flipping to the filthy lucer side of our business, have you noticed if this effort has increased your business? If so how do you measure that?

Edd,

As I stated some of that has been reduced by the fact that I have gone back to on most including interior walls on my sketches. This can reduce the amount of talking about the flow of the house. I worked with a company that did not want interior floor plans. They looked at it as a liability issue. I also now include interior photographs usually Kitchen, Living Room, and bathrooms. Thus the Improvement comments can be reduced further.

My Site Comments and Market area Comments remain as they are. Although there is in the one I posted a typo that I have to go back and fix everytime. Once I have a good neighborhood description (in my opinion) for a certain area I save it and reuse it in other reports.

As far as increasing my business. Well last year was my busiest year. This year I am just slightly ahead of last year. With more repeat customers from local banks and looking to add a CU (who has stated they are not happy with my old partner they called me).

UW's that I have talked to like what I write for the most part. I find most of the time that I get questions is on the 2055 interior and/or exterior forms. Where I do not write as much. That is when they usually want to have clarification or addtional comparable sales. On most of my 1004's I can say that I have not gotten a call back in over 2 years. (Knock on wood). So to me on at least the 1004's spending the extra 2-3 minutes writing some additional items helps.

 

[Mike Boyd]

Redundancy thy name is appraiser(some). I only describe things that are extraordinary. The user of the report should be reading the report in its entirety and thus most of the examples used in this thread, so far, are, IMHO, not necessary. You are not trying to sell the house, you are merely describing its characteristics not asked for in the body of the report. Those should be limited to items not typically found which might result in a quality adjustment, (or lack thereof) when compared to your comps.

"Average quality ranch style home basically typical for the neighborhood with a built in spa in the master bedroom along with mirrored ceilings. Kitchen and bath fixutres have been recently replaced with solid gold and appliances all but set and clear the table and self load into the dishwasher. Commercial quality range/oven has a 42 inch cooktop that required a kitchen extension. The built-in Sub-Zero reigerator also dispenses cold beer and white wine along with water and ice. Separate red wine dispenser keeps the contents at 72 degrees." Please note comments regarding super adequacies under the category titled depreciation.

 

[Fred]

Interesting thread.

I have used, but avoid uninterupteed narrative. In my opinion, extended narrative is painstaking to write and annoying to read. Other formats require minimum effort to create and provide maximum efficiency for the reader. Writing or reading extended prose forces me to be an editor.

Using conventional grammar may provide some relief to the beleaguered audience.

A 1,843 SF single story traditional home is frame construction on a slab foundation

That works better as:
A 1,843-SF, single-story, traditional home

The site is a 1.11 acre parcel,

That works better as:
“a 1.11-acre parcel.”

Readers are bogged down by awkward sentences that include too many facts.

The site is a 1.11 acre parcel, with the current improvements located on a corner lot on approximately 1/3rd of the total land area.

Reducing words (from 24 to 11) reduces awkwardness.
Example:
The improvements occupy about 1/3 of this 1-acre, corner location.

Why go there if you don’t have to? My vote for best communication tool goes to the two-column tabular format. It gets the reader and writer out of the grammar business. The headings facilitate organizing entering the material. The array helps readers find information fas, especially contrasted with long, gray blocks of text.

That said, I don’t think that “summarizing” or being “concise” automatically means no narrative. An extended passage of sentences still can be concise.

 

[Neil Anderson]

Thanks for the info, guys and gals. I just updated the basic template I start my reports with. I added a couple of 6-block photo pages and put a title in my addendum that says, "Updates and Special Characteristics:" I am going to fill in that section (or delete it) when appropriate. No more time consuming two page redundant narratives for me! I have found that the UWs don't read it anyway because they come back with questions that are addressed in the narrative quite often. Many of these would be answered with the photos. Thanks again.

Now to that Scope of Work project...

 

[Bill_FL]

I tend to be word describing the house. I have always wanted the reader of the report to have a clear mental image of the property before he/she looks at the pictures.

What I hate seeing on and appriasal, say at the additional features is:

Fence, porch, deck.

And I see that a lot.