Narrative?

[jtmilby]

I would like to request some "ideas" on my first narrative report. A brief description of the properties are as follows: There is a total of four seperate parcels, all are 100% wooded, all are similar in terrain ( ridges, very steep land) no way possible for any land to be useful for anything other than to hunt, extract the timber. There is no way to develop any of the land. No parcel has any type of improvements i.e, barns, homes etc. The timber has been inspected by an independent and the values have been submitted. Parcel #1 is 181 Ac. , #2 is 81 Ac., #3 is 57 Ac. and #4 is 4.7 Ac. I have a large amount of "good" comparable sales of larger tracts of land with identical terrain characteristics.

I have the comparables, I have inspected the land, have the info just do not know what or how to transform the information onto paper in a professional manner. I only have access to one other appraiser who has done narratives and he submitted me a copy of one of his narratives and to be honest I was not impressed with his work. I was wondering if anyone had sometype of template and/or guidelines to write narratives. If so please let me know and I will submit an email address.

The purpose is strictly for the current land owners portfolio, I was instructed that there was no interest to sell, log or any type of transfer just want a current market approach for the land.

If someone has done this type of work and could give me some information to get me started in the right direction I would be greatful.

 

[George Hatch]

JT,

I've seen a few narrative report templates published over the years, but can't remember where they are. Except for one: there is a narrative report example in the back of Henry S. Harrison's "Advanced Appraisal Methods" text, published by H2 Company, in 1995. If you or one of your friends doesn't already have a copy, you can order it from Forms and Worms, Inc. Their phone number is (800) 243-4545; leastwise, that's what shows up on the back cover of the book.

The example they have runs about 84 pages, including legal description and all the exhibits. I haven't gone through it in a long time, but I remember it as being not all that great at the time in comparison to what most commercial appraisers I know were putting out on a daily basis. But it will show you a reasonable format for setting up your report. You can simplify some of the sections, like the Cost Approach, by copying one off of the one of the apartment forms or the commercial forms. You'll also have to take special care to insert the elements necessary to comply with the current version of the USPAP, but you would have to do that with almost any new reporting format.

The alternative way to do this, and one that would be a better learning experience for you, would be to take a URAR, apartment or commercial report form and use it as a template for writing a narrative. Depending on your software package, you might already have one on your computer. Just start with a section for identification of the subject property, property interest being appraised, intended use, intended user and scope of work, then add sections for neighborhood and market segment, subject site, subject improvements and highest and best use analysis. Then after the subject property interest being appraised has been identified and summarized, you can develop and report the three approaches to value as applied to the subject property, finish it off with a reconciliation and add the necessary exhibits, certification, limiting conditions, etc.

It sounds more involved than it really is. As long as you at least address everything that you would address if you were using a form format, you'll be okay. I'd use the form report format as a checklist, and add any missing USPAP stuff as necessary. Oh yeah, and make sure you write in complete sentences, use proper punctuation and grammer, etc. "Reportese" doesn't belong in a narrative. You'll burn up a ton of time setting a template up, but once you get the hang of it, writing reports on them is not very hard. The advantage of writing your own from scratch is that you'll learn more about the whole process and you'll be aware of the areas that require changes according to the situation at hand.

The one thing I don't recommed you do is to take someone else's report format and hand it over to a typist to copy. You won't learn anything from that, and you'll very likely make some big mistakes in trying to complete a report. It's too easy to miss areas of a template that don't apply to your assignment.


George Hatch

 

[Jeff Horton]

George gave you some good advice! I also remember my first narative. It was hard enough to write with a template.

I have one that I will be happy to share. It will give some ideas maybe. I suggest you take it and modify it suit your needs. If you find anything missing please tell me!!

I used the form as a check list and have added and subtracted from it over the years. I always add the Appraiser Certification and Limiting Conditions forms to it. Never wanted to retype them so I just print them out and put in package.

I have it written in Word so let me know what version you are using if you interested. BTW there are no Excell worksheets in this one. So your on your on as far as a grid if you chose to use one.

 

[Stone]

Good advice from both. A few thoughts: I always include a letter as a part of a narrative report. I think it helps as a brief summary. I also use a table of contents in any large reports, which is a good way to verify that you have covered all your bases. Word tables work fine if you don't feel like messing with Excel.

Definitely take George Hatch's advice to heart and make sure you proof read the entire report. Grammar and spelling mistakes stand out more in a narrative report. And definitely take a look at one or two, if you can. This is one of the things that frequently helps review appraisers.

BTW, if there has been a timber cruise, and you aren't going to include in the report, you should mention that the landowner has a copy. Just so it doesn't look like you are ignoring the woodlot.

Good luck. I find narrative writing to be much more enjoyable than filling out forms. One of the best parts is that you get to decide based on the property what is appropriate to place in your grid, if you use one. The grids in the common forms are difficult to apply in many instances.

 

[Terrel L. Shields]

I have a .pdf file that came from American Society of Farm Managers and Rural Appraisers on narrative report format. I am not sure you can still download that file directly from them unless you are a member.

I think you are asking for more than the format. You are asking for suggestions on a format to grid the adjustments perhaps? The second edition of The Appraisal of Rural Property by the AI has many good formats and ways to make adjustments. It is a very good text on appraising not just farms per se but rural property.

Email me at [email protected] and I will send the narrative format and a file or two that I use for making adjustments.

Terrel