Are inconsistencies in appraisal reports that bad? Generally, yes! This is because an appraisal report must make sense. It is easy to gather facts and then report them. That takes no analyses. But our job is to take those facts, and then make sense of them. Why? So the client can use them to judge risk. We help clients assess and understand risk. An AVM can’t do that – it just points our a value. We point our values, too. But then we we tell the client why we concluded that value. An AVM can’t do that. Only an appraiser can help the client understand and assess risk.

What are inconsistencies in appraisal reports? Take the 1004 form as an example. Suppose on page 1 you indicate property values are stable. But on page 2 you make a time adjustment. So, which is it? Is the market stable or increasing? It’s possible the market has recently started to increase after a period of stability. In that case, an upward time adjustment would make sense. But another inconsistency is that the appraiser won’t explain that change in market condition. Why? Its our job to explain the market to the client. From our explanations, clients assess risk.

Appraisers can avoid Inconsistencies in appraisal reports. First, give up dependence on boilerplate. Second, write the report backwards. That means deduce a credible value opinion first, then write the report. It is a lot easier to get where you’re going if you already know the way. Ask an associate who knows nothing of the assignment to read the report. After reading the report, if that reader can explain how and why you arrived at your value conclusion, you’re home free! Finally, send out every 10th report for a full Standards 3/4 review. Another pair of eyes on a report, eyes that know what to look for, never can hurt!