Narrative Report Writing 1 - Outlines

This is the first installment of a 10 part series that discusses narrative report writing.  The installments will vary in size, and I may add to or edit portions of it over time.  These short articles are focused on report writing not "the valuation process."  Most appraisers understand; data collection, highest and best use analysis, the three approaches to value and reconciliation.  What many have difficulty with is getting it all down in a narrative report.

If you spend your time surfing the web you can find a great deal of information regarding writing narrative appraisal reports. I can tell you that because I have spent time in the past doing just that.

The overriding issue of many new appraisers is "will the narrative example that I have found, if faithfully duplicated, satisfy Uniform Standards of Professional Appraisal Practice (USPAP) requirements?"  In my opinion the answer is often no, because standard outlines cannot consider the broad range of appraisal problems that present themselves.  Narratives focus on solving the single appraisal problem they were designed for, and are not meant to be used for every other problem.

As an example, I just completed an appraisal assignment on a parcel of land, which seemed in the beginning to require a relatively straight forward, standard and easily duplicated structure.  However after a further discussion with the owner I discovered that the property was going to be partially taken as part of a roadway widening project.  That was the end of the potential use of a simple standard outline or land valuation template and the beginning of a much more complex report.  I have completed other assignment like that one, but its considerably different. 

Many appraisers who have been in the profession for a while build a library of appraisal templates to streamline the appraisal of similar property "types."  Thus they can access an outline or template when the need arises.  If you have no current template specific to the property type that means that you will be spending a lot more time than a party who does writing an appraisal report.

You can have an extensive library of property types and still find that the latest assignment offering is not included in it or that the last report that you did of that specific type is so old that a complete rewrite of it is needed.  If you appraise ski resorts, for example, but you haven't completed one in the past 3-5 years, you will likely find that the economy, the market and likely values have changed a great deal.

If you were to ask me are outlines, examples and report templates useful?  Of course I would say that they are.  I suggest appraisers collect as much material as they can property types that they anticipate appraising so that they can decide how they want to layout the development of their appraisal opinions.

What you will find on the Internet are articles about narrative appraisal form and structure, sample reports (you may have to dig deep for them), Powerpoint presentation on report development and at least a few government sites that spell out exactly what that government entity is looking for in their reports.  If you are active in a market you will be offered the work of your peers.  I suggest you take those reports digitally or scan and archive them for future reference.  Your work is usually judged based on that of your peers and if you have no clue what they are doing you will soon be out of touch.

Some examples of free documents available via internet search that may help you with your narrative format include;   the Uniform Standards for Federal Land Acquisition (USFLQ), Chapter 9 State of CA DOT on Appraisal / Condemnation and the narrative report requirements of a number of other state governments can be found.  Of course USPAP itself lays out some necessary items and requirements. 

If you are creating or modifying an outline or a template for your appraisal reports and you want to assure yourself that you are 1) providing the detail necessary (to meet appraisal standards of care) and 2) meeting all USPAP requirements, I have found that its best to develop your outline or template and then verify its soundness by using the same checklist documents that Review Appraisers use if they are hired to review them.  This site provides some of the review documents that I referring to, make a search under "review" and you will be rewarded.

For more appraisal information contact Glenn Rigdon MA, MRICS, ASA is a Las Vegas / Henderson Nevada appraiser who can be contacted via email or via his business website Appraiser Las Vegas  (http://www.appraiserlasvegas.com), or you can also click on “Contact Us” on the home page of this website or visit my public profile at LinkedIn at http://www.linkedin.com/pub/glenn-rigdon-ma-mrics-asa/1a/30b/879/.  

Article source: http://www.appraisalarticles.com/Narrative-Report-Writing/4308-Narrative-Report-Writing-1-Outlines.html