Valuation Report Writing and Communication of Results
A valuation is only as good as its communication. Every report must state the assignment, the intended use and intended users, the effective date, the value definition and premise, the scope of work, the bundle of rights, and the conclusion with supporting reasoning. Distinguish a restricted report (limited distribution, minimal presentation) from a comprehensive report (full presentation of data, analysis, and reasoning). Both must contain enough information for the intended user to understand the analysis; the difference is presentation, not rigor.
Write conclusions so they are unambiguous: a single point value, or a clearly defined range with rationale. State extraordinary assumptions and hypothetical conditions explicitly and explain their effect. An extraordinary assumption is a fact assumed true that, if false, would change the conclusion; a hypothetical condition assumes something contrary to what exists. Confusing the two is a standard trap.
Reconcile the approaches rather than averaging them mechanically. Explain why one approach is most reliable given the asset and data.
Worked rule of thumb: if a reader cannot identify the asset, the rights, the date, the value definition, and the reasoning from the report alone, the report fails regardless of the number's accuracy. Write the conclusion so a non-appraiser intended user can act on it.
Traps: certifying compliance without disclosing departures; omitting the scope of work; and burying limiting conditions so they contradict the value conclusion.