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Need to do a narrative

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Bill S

Thread Starter
Junior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Illinois
For the longest time I have been able to get away with using forms 71 a&b for small - mixed use properties. A very good bank/customer of mine now wants these properties appraised using a narrative report.

I've been appraising for over 10 years and have never had the opportunity to use this format.

Any suggestions (other than pass on the assignment?) I'm comfortable with all of the approaches and have plenty of comparable data - but no idea what format to use. (template?)

Please Help

Bill
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Don't turn the job down!! The first one always takes a while, gotta learn sometime. What kind of report? Limited-restricted are short and sweet, self contained will take you a while.

P.S. Your profile is not complete (need an e-mail) :evil: :2gunfire: :eek:nfire: :silly: :smilecolros:

Okay, I went overboard. I like the new emoticons. :drinking:
 

Bill S

Thread Starter
Junior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Illinois
M L It is a limited - restricted.

Thanks for letting me know about the email. I never look at my own settings. I added my email. I think your's are set the same way.
 

Bill S

Thread Starter
Junior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Illinois
M L, I could also use some help with a self contained. I've had a couple of opportunities in the past but turned them down because it seemed to be a lot of work and I was busy. I'd really like to persue the next one that comes up.

Thanks
 

Paul Ness MAI

Member
Joined
Jan 14, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
Your experience will help with complying with Standard 1, but you really need hands-on help from an experienced commercial appraiser for your narrative to assure compliance with Standard 2. If it's a type of work you are looking at increasing in the future, I suggest you take a narrative report writing course.

It's tough to advise you on limited-restricted appraisals because USPAP leaves a lot of room to roam as far as restricted report contents, although you still need a work file with all the documentation and analysis. Pull out USPAP and follow Standard 2 as well as the chart in AO-11 (use it as a check list) pertaining to the contents of a restricted report. The limited scope aspect requires your discussion and agreement up front with the client as to how you will depart, and you need to be comfortable with the level of departure given the comlexity of the assignment and property type.
 

Bill S

Thread Starter
Junior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Illinois
Thanks to all for your help.

I have the need for some additional CE hours so I'll be looking into a report writing class for this winter. For now I'll stick to the small store fronts with apartments on top and see how that goes.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
i would opt for a summary report, complete appraisal. They are not much larger than a form report with addendum. Far more flexible than a restricted report.

My lay out is simple

Cover Sheet
(Table of Contents, if you like)
Letter of Transmittal
2 pages of definitions (common definitions and abbreviations you use including a definition of Summary report, complete appraisal, etc.)
A two page Cert & limiting conditions very similar to Fannie mae's
A short Environmental certification with check offs.

Summary (about 6 - 8 pages) with the body of the report

Cost Approach (usually 2 pages) one with Intro (lifted from Appraisal of Real Estate)and land sales grid, page 2 with improvement grid

Sales App - Pg 1 is intro and definition of Sales Approach (lifted from Appraisal of Real Estate)
Page 2,3,4 (or more) are sales write ups - single sheets that I create that have a pix at the top and grantor/grantee, book page, address, features, age, etc. and estimates site value and improvements contribution as well as income and expenses if available. I save each comp as a single file for future use.
Final page is an adjustment grid I created in Word Processor (WordPerfect is my choice) and my final estimate by that approach.

Income approach, ditto for intro section with definition, then NOI statement as available. 3 rent comps if applicable, subject rent schedule, estimate GIM from 3 rent sales (usually I did that in the Sales Write ups above) and use simple GIM approach
10 u. x $400 x 12 mo. = 48,000
GIM = 10 48,000 x 10 =
Est. by Income Approach = $480,000

A section I complete separately is the Addendum
Photo page 1, 2, etc.
Area or Comp Map
Neighborhood Map
Sketch
Legal or survey, plat, etc.
Statement of Qualifications

If you like I can email you several files on narratives with example reports. The example was a class project that converted a URAR report into a narrative. .pdf files. Send me an email to [email protected] and I will bounce you back some samples.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Bill - others

I am having trouble with my email, will send you templates. These are Word Perfect Templates and Word will not convert them correctly.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
There is an old paperback book that was issued by the SREA as to how to write the narrative report. I don't know that the AI still issues it but it is a great basic layout. Of course, the older ones don't meet current USPAP requirements (scope, etc) but as to how to lay out a narrative report, it's a great primer.

Roger
 
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