Appraisals.

Appraisals are completed in accordance with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute as well as the Uniform Standards of Professional Appraisal Practice (USPAP).

Appraisal Analysis- an opinion of value of a specified interest in real estate. The appraisal is the process of forming an opinion of value and depends on the Scope of Work for the assignment. Depending on the intended use of the appraisal, and its intended user (our client), the analysis can include all three approaches to value typically used in the appraisal process: Cost Approach, Sales Comparison Approach and Income Capitalization Approach, or may include only the most applicable approach to value. For commercial real estate, the most applicable approach is typically the Income Capitalization Approach. The appraisal analysis is completely separate from how it is reported as discussed below.

Types of Appraisal Reports

1. Self-Contained Report: A description of the appraisal process, typically 80—150 pages or more. Typically used by clients who have little knowledge of a market, those who need a thoroughly documented appraisal report, or for the reporting of complex property types. This is the most comprehensive type of report available to our clients. Intended users typically include lenders and attorneys.

2. Summary Report: A summary of the appraisal process, typically 65—100 pages. Used by clients who have a general knowledge of the type of real estate appraised and its market environs, this appraisal is most often lenders and property owner/investors.

3. Restricted Use Report: A statement of the appraisal process. This report can only be used by our client/intended user. It cannot be copied or used by anyone other than the client, who must have a thorough knowledge of the type of real estate appraised and its market environs. For example, a lender desiring to extend and existing loan may use this type of report.