Characteristics of a Quality Appraisal Report: What constitutes a quality appraisal? Unfortunately, this is a question that is difficult for many users of appraisals to understand. At first inspection most residential appraisals have a fairly similar look and feel. They typically include some appraisal forms, a floor plan, maps, and photos. A closer inspection shows that all appraisals are not created equal.

We take great pride in our appraisal products, and it is sometimes difficult for clients to recognize the benefits of our hard work. Therefore, we have created this brief summary which describes the elements that make our reports leaders in the local marketplace.

Uniform Residential Appraisal Report: This form includes a description of the subject property and its neighborhood and regional influences, along with the Cost Approach, Sales Comparison Approach, and Income Capitalization Approach. This is the heart of the appraisal analysis. We have found that the quantity and quality of the information provided in the report have a direct relationship with the support and reasonableness of the final value estimate. Following are the extra steps we perform in our appraisal reports to ensure a thorough and competent analysis.

Number of Comparable Sales: Only three comparable sales are required in a typical residential appraisal report. Our reports typically include six comparable sales, and even more for complex properties. While three comparable sales may be sufficient in some situations, we believe a more convincing report is created by providing additional comparable sales. After all, if the data is available, why not utilize it and present it to the client. We believe clients deserve to have more market data with which to base their financial decisions.

MLS Market Data: Our clients deserve access to listing and sales data from our local Multiple Listing Service. Therefore, we commonly include a printout of all recent sales, pending sales, and current listings of properties in the subject marketplace. This data serves to provide a good snapshot of the subjects competing marketplace, lending additional support to the conclusions of the appraisal.

Floor Plan Sketch: The floor plan sketches in our reports are computer-generated and include all dimensions and square footage calculations. We utilize the ANSI standard for calculation of square footage. This standard has been adopted by the real estate industry as a common standard in representing square footage. Our appraisers are knowledgeable of the techniques to accurately measure properties, and our reports include a presentation quality floor plan in every report.

Every appraisal should include a floor plan sketch and square footage calculations. If these items are not present, what is the source for the square footage in the appraisal? Is it an accurate source? Part of an appraiser’s responsibility is to measure a property for an appraisal. Square footage is the most important factor affecting value in our marketplace, and relying on another source is not a reasonable assumption unless it is specifically cited in the report. If you use a report without these features, you are not getting the full package of goods. Beware of appraisal reports which include hand drawn floor plans or copies of architectural plans without a computerized sketch and square footage calculations.

Maps: The reports of Pack Appraisal Company include an extensive array of maps which help to tell the story of the subject properties locational characteristics and the relationship between the subject and each comparable sale. We typically include maps for the state, county, neighborhood, project, and plat of the subject property, along with plat maps which show each comparable sale. Much insight can be gained by studying the relationship of the subject and each comparable through maps, and a complete set of maps helps to thoroughly communicate the appraisal.

Some appraisals only provide general area maps that lack any detail of the size and configuration of the sites of the subject and comparable properties. Such maps provide little meaningful contribution to an appraisal. Plat maps must be included which depict the location, size, configuration, and immediate influences of each site.

Please note that our Digital Delivery reports also include a full array of maps. We have scanned hundreds of plats and maps for inclusion in our digital reports. This assures you of completely documented and supported reports regardless of the delivery format.

Photos: We believe in the saying that "a picture is worth a thousand words." Thats why we include an extensive array of high quality digital photos in every appraisal. Many appraisers will include only the minimum front, rear, and street subject photos. Our reports always include interior photographs, along with any pertinent photos of views or other special features. Again, as with the sketch and the maps, it doesn’t take much longer to do the job right, but we try to do it right every time.

Narrative Addendum: Our addendums are known for being lengthy and informative. They are an important element of a quality appraisal report, serving to adequately communicate and support the appraisal and its value conclusion.

We include a lengthy description of the regional area, which helps to define the factors, forces, and influences which are affecting the subject marketplace. The neighborhood descriptions expand on this theme so that the user of the appraisal has a full understanding of the neighborhood and its market appeal. Thorough descriptions are provided of the subject site and the subject improvements, for the appraisal forms do not provide a sufficient format for adequately describing properties. In-depth descriptions of the appraisal process are provided as this can be a confusing issue with many users.

Commentary is provided on the basis for the adjustments assigned to each comparable sale. Large adjustments are explained, and the reader is provided with information to understand the methodology utilized by the appraiser. We try to foresee the questions of a user or underwriter and answer those questions initially. A reconciliation of the market data is performed before arriving at a final value conclusion. Finally, an estimate of reasonable marketing time is provided.

Summary: This review of the appraisal process and the content of a residential appraisal should serve to answer your questions and elevate your knowledge of residential real estate appraisals in the Vail Valley. The appraisal process is part art and part science, with so many facts and variables involved that a range of reasonable answers is possible. But, the foundations of a quality appraisal include:

· A sufficient quantity of accurate data

· Use of proper appraisal methodology

· Presentation of the analysis and all supporting addenda in a professional and convincing manner, and

· A well-conceived reconciliation of the data and analysis to arrive at a final opinion of value.

Our appraisers excel at providing such a product. Pack Appraisal Company has been built on honesty, integrity, service, and quality. You can see that these attributes are built into our appraisal products. We look forward to providing you with our appraisal services in the future.