Just like the waters of Lake Superior, our reports are crystal clear.
“An Appraisal Report should never read like a Mystery Novel “
At Clearwater Appraisal Service we believe our duty is to provide the client with as much information as possible. We not only support our opinion of value, but explain how we determined an opinion of value.
Our typical residential appraisal report includes 8 full pages of commentary to explain our thought process while developing the appraisal. In our lengthy Additional Comments Addendum, we describe our adjustment methodology, visualize relevant data, and provide screenshots of our calculations. We often receive feedback from underwriters and clients that they appreciate us taking the time to write reports this manner; our reports are clear and easy to follow.
While residential appraisers use standardized forms to write their reports, they are also required to adequately support their opinion of market value by including relevant information, either as an attachment, or as an addendum to the appraisal report form. These additional addenda are often left to the appraiser’s professional discretion, which allows for a wide range in what clients receive in an appraisal report.
Many residential reports contain very little in the Additional Comments / Text Addendum section of the report, and are sometimes only 1-2 pages at most. In our office, we refer to these types of reports as mystery novels, as the reader is left to “solve the mystery” of how the report was developed or how adjustments were determined.
If clients can quickly follow how a report was developed there is little need for further clarification or a request for additional commentary.
This saves valuable time for everyone: the borrower, the lender, the realtors, and even for us as the appraiser.
So why wait? Order your next appraisal with us!
Examples of the additional comments in our reports (left) compared to comments in a typical report (right) Move the slider side-to-side to truly see the difference!
Features in Our Residential Appraisal Reports
Market Conditions Scatter Plot and Trend Line
It is not uncommon for appraisals to consistently determine that the market is “stable’ without any time adjustments in the report. It is essential to account for how the market has changed from when a comparable sale closed to the effective date of the appraisal. We believe that considering market conditions, and making time adjustments if necessary, are core factors which appraisers absolutely need to account for.
If the market in a subject property’s neighborhood is indeed stable, we can promise you that we will show you how we made this determination with both a scatter plot of recent sales and a stable market trend line. Conversely, if it appears market conditions are increasing or decreasing, we are confident in our ability to make positive or negative time adjustments that accurately reflect current market trends.
Methodology for Adjustments
Real estate appraisers are licensed professionals, and can use several different strategies to determine a tangible and defensible valuation. The methodology utilized in a report can vary greatly. The appraiser knows their own appraisal process intimately, but it might not be abundantly clear to the reader. Our reports include a breakdown of our calculations to illustrate the methodology and reasoning behind how adjustments are made.
Inclusion of Six Comparable Sales
While the minimum number of comparable sales required for most lenders is three (3), our self-imposed minimum is no fewer than a total of six (6) comparable sales, which are all weighted and utilized in the Final Reconciliation of our reports.
We love data, and the more comparable sales that are evaluated, the more data points we have to work with when writing a report and determining value. Be confident with more than just three comparable sales.
Extensive Commentary
We believe an appraisal report should be as transparent as possible for our clients. We are always improving upon our process to ensure our reports are thorough and contain everything our clients need and more. Don’t ever second guess an appraisal again, and go with a crystal clear appraisal report instead!
Seeing is believing! Order your next residential appraisal report with us to see what a Superior report contains.
