Report Writing, Appraisal Review, and Communication
Domain 6: Report Writing, Appraisal Review, and Communication
This domain tests whether you can communicate a credible value conclusion and review another appraiser's work without overstepping. A report must be clear, supportable, and not misleading.
Core rules
- Identify the client, intended users, intended use, value definition, scope of work, and effective date.
- State the approaches used, the data, the analysis, and the reconciliation. Explain why the selected approach and value are credible.
- Certifications must be truthful; limiting conditions cannot contradict the analysis.
- A review tests completeness, accuracy, adequacy, and appropriateness. The reviewer may disagree with the value but must support the conclusion.
- A reviewer must not alter the original report or substitute personal judgment without analysis.
Worked example
A review finds that an apartment report uses only one comparable sale with a 20% adjustment and no support. The reviewer checks the adjustment against market data. If the adjustment is unsupported and no other evidence supports the value, the reviewer concludes the original value is not credible and states why. If other market data support the conclusion despite the weak comparable, the reviewer may still find the report credible while noting the deficiency.
Traps
- Writing a boilerplate report that does not address the subject's actual issues.
- Reconciling by simple averaging instead of explaining weight.
- A reviewer changing the value in the original report.
- Failing to state exposure time or effective date.
- Using vague language such as value appears reasonable without support.