Re-appraisal

[Richard Carlsen]

I have a Restricted Use Appraisal that I do for people who want to sell their houses. It is a letter with about two pages of conditions. It gives a range of value only as the most probable range.

I do the regular inspection, take the photos and then do my work-up on a 1004 including Cost and Sales data approach. (Assume here that the Income approach is N/A) When I hit the number, I stop and fill in the letter. The 1004 gets printed and placed in the work file. The letter is delivered to the client.

This works well for people who just want a number and not all of the supporting data.

 

[Tom Hildebrandt]

Doug

Both Richard and Terrells ideas have merit.

I personally quit using the URAR except for the odd lending work assignment. I use a summary narrative that runs about 14 pages plus addendum of 5-8 pages.

Ah, the range. My favorite answer to this is "it depends". Clearly for a rather standard home in a subdivision in a an active market, the range can be rather well defined by market sales and listing, perhaps as narrow as 10%. For a more complex or unique home, the reasonable range can be quite large, I actually have seen ranges be 25% or more where there was no really good data.

I would show in the report the upper limit as being set by similar listings, the bottom would be comparables which were inferior in most categories.

But that is why you have the assignment, they want your professional opinion regarding the marketability of the home.

Regards

Tom Hildebrandt GAA