Appraisal and Valuation Services


Appraisal and Valuation

Whether its land, a complex proposed development, or a single tenant or owner-occupied property, we offer several types of appraisal report formats. With rare exceptions, licensed and certified real estate appraisers in California are required to prepare appraisals in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). There are two reporting categories. The first is broadly labeled an appraisal report while the other is a restricted appraisal report that tends to be brief and prepared for a single client/intended user only. Appraisals can be reported in a “form” format as is often the case for 1-4 unit residential properties or using a “narrative” format that is more typical of land and commercial property appraisals.

Examples of appraisal services include:

  • Lender or financial institution making a new loan or additional advance
  • Dispute over the impact of a discovered easement not reported as an exception in a title insurance policy
  • Buying or selling real property including commercial buildings, ranches, churches, etc.
  • Buying out of a partnership or fractional interest in a property
  • Support in negotiating new market rate lease terms
  • The purchase or sale of an easement
  • Eminent Domain and right of way taking
  • Exercising option of purchase clauses in leases
  • The sale of conservation easements or impact on value of an existing conservation easement
  • Valuation of a Going Concern (real estate, personal property and business component)

The minimum requirements for any appraisal report are summarized below:

  1. Identify the client and intended users
  2. State the intended use
  3. Describe the real estate
  4. State the real property interest appraised
  5. State the purpose of the appraisal including definition of value
  6. State the effective date of the opinion of value and the date of the report
  7. Disclose scope of work
  8. State all assumptions, hypothetical conditions and limiting conditions
  9. Summarize the information analyzed, procedures followed, and reasoning that support the analysis, opinions and conclusions
  10. State the use of the subject property as of the date of value and the use of the real estate reflected in the appraisal (highest and best use)
  11. State and explain departures and the reasons for excluding any of the usual valuation approaches
  12. Include a signed certification

Documents often needed in the appraisal process include the following. 

  1. An assignment agreement
  2. Purchase, sale or listing agreements
  3. Preliminary Title reports or legal descriptions
  4. Leases
  5. Options to purchase or sell
  6. Historical income and expense statements (last three years)
  7. Construction plans and specifications
  8. Building Permits or project approvals
  9. Costs for proposed improvements or repairs
  10. Costs for recently completed improvements or repairs
  11. Contractor’s inspection reports, soils reports, environmental reports

After an initial clarification of the type of services needed, an assignment agreement will be prepared and sent to the client for signature.  It will include a brief description of the property, and will include information regarding the name of the client, intended use and users of the appraisal, appraisal review, or consulting services.  Essentially the “scope of work” will be stated along with a request for any needed documents.  The assignment agreement should be reviewed carefully.