Posted 7-7-08; Updated 9-27-08
Page 293: Change the first two paragraphs under the section entitled "Appraisal Report Structure" to the following.
There is no single approved format for all personal property appraisal reports, nor is there a required method of presenting information within the document. Appraisal reports must be written with the needs of the client and other intended uses in mind. However, appraisal reports typically contain a logical presentation of the required elements of information.
Appraisers usually choose to prepare either a narrative letter-style appraisal report (examples of which are shown in Appendices L, M and N) or a form-style appraisal report, which, while the norm among real property appraisers, is less often used by the personal property appraiser. See Appendix Z for an example outline of the topics a form report might include if used by a personal property appraiser.
A narrative letter-style report has the look and feel of a formal letter. It is on company letterhead complete with salutation, content, the USPAP certification statement, signature and enclosures. This formal letter is also referred to as the transmittal letter. Attached to the transmittal letter is the body of the report. The body of the report includes the item-specific information such as item descriptions and values. Often the body of the report contains a table with the item number in the first column, the item description (including comparable sales on which value is based (if necessary)) in the second column, and the appraiser's opinion of value in the third column. Also attached to the transmittal letter would be addenda to the report including the appraiser's professional profile and any supporting documentation necessary to make the report complete and understandable
In a form-style report, the report is prepared in sections according to a pre-designed format, with each section appropriately titled and addressing the relevant elements of information it is designed to contain. Form-style reports allow the appraisal to be communicated in a standardized format. They help ensure that all necessary information is included in the report, and they allow the client to easily and quickly review the important information - thus their popularity within the discipline of real property appraising where form-style reports are standardized throughout much of the industry. Unfortunately, for the personal property appraiser, form-style appraisals are not standardized and often restrict the appraiser's ability to tailor the report to the specific assignment conditions, intended use of the report, or to the necessary scope of work. Accordingly, though used and customized differently by each appraiser, form-style appraisals are not as popular among personal property appraisers as is the more flexible narrative letter-style report format.
Regardless of which appraisal report form is used, in general terms, the appraisal report must contain three categories of information: