Evaluations / BPOs / Loan Workouts

A full narrative appraisal report may not be an option due to financial or time constraints.  In these situations, a number of options exist including a Restricted Appraisal Report (brief narrative format), a "limited-scope" appraisal where the analysis is limited to a single valuation approach, an Evaluation Report or BPO (broker's price opinion), the verbal reporting of a value estimate (no written report) or simply a summary table with comparable sales data.    

Below is a Menu of Valuation Services (published by the Appraisal Institute) intended to assist in understanding the range of services that can be delivered by professional real estate appraisers.

Scope of work options could be:
Ways to narrow scope may include an "update" of a previous appraisal, no inspection, or desktop, a single valuation (the primary) approach to value, providing a value range, or a value conclusion "at least $x" or "not more than  $x".                                                                                                                        

Level of reporting
Very brief (Restricted Appraisal Report - RAR)
A RAR does not need to include data and analysis (i.e., does not need to "show work" of appraiser), though a lender most likely will need the RAR report to also include comparables and discussion of the property condition to meet FIRREA minimum requirements. RAR can be as brief as a few pages.       More detailed Appraisal Report
An Appraisal Report.......can also be prepared as an "Update" when there is a previous appraisal.                                                                                                                                                                    Value type

  • Market value
  • As Is
  • As Stabilized
  • As Complete
  • Liquidation value
  • Disposition value
  • Fair value

Other Valuation Services:

  • Rental value only
  • Evaluations
  • Conclusion of market rent for subject
  • Conclusion of net income for subject
  • Cap/discount rate analysis
  • Cost analysis
  • Subject property inspection (no valuation)
  • Analysis (no specific subject property)
  • Rent survey (for property type, no specific subject property)
  • Data pull
  • Inspection and Public Records Search
  • Price Analysis

 Appraisal Review

  • Reviewer develops own value opinion and reports it within the review report
  • Reviewer does not develop own value opinion