Summary vs. Restricted Report

[Thebookdoesnthaveit]

I just read a report done by a trainee in our office. The principle appraiser was out of the office, so I said I would help with the editing. I think the trainee did not write the report in a summary format. Here is an example. Highest and Best Use: The highest and best use is for continued use. Land Value: The following table summarizes the land sales selected. Description table was inserted. The land value is $zzz. Final Reconciliation: The quantity and quality of data is good and the cost approach supports the sales comparison approach.

In my opinion, those are not summary discussions. The principle appraiser says the narrative appraisal is fine and it is a summary report. Her argument is that the summary form for residential appraisals has check marks only, so it is fine to just state the comments.

Maybe because I am a commercial appraiser, I tend to write a bit more and discuss and rationalize my conclusions in a summary report.

Any comments??

 

[TxArmadillo]

Seems waayyyyy to short even for a summary report. Lacks key and essential information necessary for a reconciliation of value.

 

[Ken B]

Restricted Use Report
SR 2-2(c)(viii) "state the appraisal methods and techniques employed, state the value opinion(s) and conclusion(s) reached and reference the workfile"

Summary Report
SR2-2(b)(viii) "summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinion, and conclusion"

Your guy may have been a little light on the summary, but he exceeded the requirements for a Restricted Use report.

 

[Mountain Man]

That's too short to even be a restricted IMNSHO.
As a reviewer I'd jumped all over just stating a highest and best use. It needs as vacant and as improved going through all 4 test of H&B.
I wouldn't approve it. If she insist it's fine, then she can just wait until her supervisor comes back.

 

[CANative]

SR 2-2(b)(ix)

State the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal; and, when an opinion of highest and best use is developed by the appraiser, SUMMARIZE THE SUPPORT AND RATIONALE FOR THAT OPINION.

The appraiser trainee failed and so did the supervisor. The supervisor more so than the trainee, if you ask me.

 

[The Warrior Monk]

The difference between "Restricted" and "Summary" is "State" versus "Summarize." If the required sections are not summarized, then it does not meet the minimum standards of a summary appraisal report.

Her argument is that the summary form for residential appraisals has check marks only, so it is fine to just state the comments.

Utterly irrelevant. Forms do not dictate the appraisal process. It is up to the appraiser to provide a compliant report.

 

[Mark K]

Your guy may have been a little light on the summary, but he exceeded the requirements for a Restricted Use report.

Agree. Adequate for Restricted, inadequate for Summary.

I prefer short and to the point but this doesn't even pass my test.

It might take only one or two well written sentences in each section to make it passable as a Summary report. The appraiser and supervisor both need some schooling.

 

[Kim Whiting]

What are you doing working in an office like this? Seriously. I swear, the concept of going into some office with 10 appraisers at varying license levels working for 1 company is absolute greek to me. I'm a 1 pony girl. Maybe it's these "factories" us "independent" appraisers need to be concerned about.

 

[Thebookdoesnthaveit]

What are you doing working in an office like this? Seriously. I swear, the concept of going into some office with 10 appraisers at varying license levels working for 1 company is absolute greek to me. I'm a 1 pony girl. Maybe it's these "factories" us "independent" appraisers need to be concerned about.

This used to be a good appraiser. I can't explain what has happened, but this appraiser is slipping. We started this company over 10 years ago and everyone was on the same page and had very high standards. Something needs to be done, but there are four other people involved, so it's going to be a painful process. We all change throughout the years, unfortunately, some of us not for the better. Sometimes life just beats you down.

 

[Michigan CG]

HIGHEST AND BEST USE: The subject property is located at 9999 Twin Creek Circle in xxxxxxx Township. The home is typical of subdivision homes built in the 2000-2008 era. The home has been well maintained and no deferred maintenance is apparent. The home is a two-story home with partial brick exterior and vinyl. The subject property is located on a 0.87-acre tract and the Highest and Best Use is clearly for residential use considering zoning, land size and surrounding properties. Although the current improvements might not represent the improvements that would improve the property to its highest value it would not be financially feasible to raze the current improvements and improve the property with other improvements. Modifying the property might increase the value of the property although the cost to do so would most likely not return the COST in terms of VALUE to the property. Considering this the current improvements are the Highest and Best Use of the property considering the four factors of Highest and Best Use.

1234567890