Assignment parameters and scope of work better define the factors the appraiser considered during the
valuation process.
Likewise, each approach to value—cost,
sales and income—is managed within
separate pages. This too allows the appraiser to include or exclude as the assignment warrants. Appraisers who initially
felt the format was too intensive should
be reminded of the flexible and optional
nature of the content.
Other improvements:
• The report has more room for narrative
comments throughout.
• The market area analysis contains many
familiar items.
• The site analysis includes comparative
elements to better relate the subject to
the norm in its market.
• The improvement section addresses the
most relevant physical attributes.
• The room grid omits total room count
since there is no consistent tally or
significance.
• There is a separate room grid for areas
not defined as gross living area.
• Highest and best use analysis is more
emphasized.
sion of Appraisal Institute certification,
which is mandatory for Appraisal Institute
designated members, and room for custom certifications.
since listings or pending sales may
be used
Cost approach page
n identifies replacement cost or reproduc-
tion cost
n uses a more comprehensive cost grid for
various elements
Income approach page
n includes derivation of market rent and
gross rent multiplier
n offers flexible rental period (e.g. rent/
year, rent/month, rent/season, etc.)
Sales comparison approach
n includes comprehensive grid
• list price vs. sale price
• closing date and contract date
(which is more relevant for time
adjustments)
• adjustments line for bedroom and
bathroom count
• below grade areas and other living
areas are itemized
Optional Pages
The following single pages are included
in the forms for optional inclusion or
exclusion:
Site valuation page
n includes useful for properties with high
land to value ratios
n outlines valuation methodology used
• sales comparison—most often utilized
• market extraction
• alternative
n shows a generous grid with adjustment
on price per lot or price per unit of
comparison
• grid labeled for comparisons vs. sales,
The AI Reports suite has been adopted
by the major appraisal software
packages, including ACI, a la mode,
Appraisal.com/Day One, Software for
Real Estate Professionals and Bradford. In
addition, the Appraisal Institute has issued
an updated AI Reports Guidebook, which
can be downloaded free of charge at
www.appraisalinstitute.org/education/aireports.
aspx.
The AI Reports initiative is an ongoing
and evolving solution for practicing appraisers. Users are encourage to send their
feedback and suggestions to aireports@
appraisalinstitute.org.
In addition, the limiting conditions
are not directed to mortgage market
or lender requirements. They are more
“appraiser-centric,” have room for custom
limiting conditions, and include the market
value definition (and source) per USPAP
requirement.
Certifications also are derived from
strict adherence to USPAP. There is inclu-
