What’s in an Appraisal Report?

Appraisal reports represent an important component of the accreditation process. Appraisal reports that are actually prepared by the candidate, for clients, demonstrate the quality and professionalism offered by the applicant to the public. Such reports assist the Board of Examiners in evaluating the scope of practice, ethical attitude and levels of education and appraisal competence achieved by the applicant.

Appraisal reports must conform to the Uniform Standards of Professional Appraisal Practice (USPAP) and to the principles of appraisal practice, code of ethics, and discipline-specific standards adopted by the American Society of Appraisers.

Although there are several types of appraisal reports, the Board of Examiners requires the applicant to submit "self-contained," "complete" or "comprehensive" written reports for review.

What Is a Self-Contained Appraisal Report?

This question is answered in the following documents:

• Uniform Standards of Professional Appraisal Practice (USPAP)
• ASA’s Principles of Appraisal Practice and Code of Ethics (Sections 6.2 and 8)
• ASA’s discipline-specific standards
• ASA report guidance critique sheet

These references outline the requirements of a self-contained or comprehensive written appraisal report; however, the applicant should keep in mind the intent as well as the letter. For example, Section 6.2 of ASA’s Principles of Appraisal Practice and Code of Ethics states:

The procedure and method for determining the particular value in question is a matter for the appraiser himself to determine—he cannot be held responsible for the result unless he has a free hand in selecting the process by which that result is to be obtained. However, good appraisal practice requires that the method selected be adequate for the purpose, embrace consideration of all the factors that have a bearing on the value, and be presented in a clear and logical manner.

In other words, the conclusions that have a bearing on value must be supported and presented in a clear and logical manner. Failure in this area is the most common weakness in appraisal reports submitted for accreditation purposes. Candidates should read the appraisal reports selected to be submitted through the eyes of an outsider and ask such questions as:

	Are all relevant standards adhered to?
	Is the report clear and logical?
	Are all statements and conclusions that contribute to value supported?
	Is the report understandable?

Appraisal reports that do not meet these requirements are not "self-contained," "complete" or "comprehensive" as required for ASA accreditation purposes.

Submitting Appraisal Reports for Review
Appraisal reports submitted for accreditation purposes must be actual reports prepared for clients or employers. These are not "demonstration reports." Due to this requirement, the International Board of Examiners cannot accept appraisal reports that have been altered from their original form.

As a reminder, appraisal reports submitted for accreditation purposes must be no more than two years old.