Review Form Commercial Appraisal – Fill Out and Use This PDF

Address

_______________________________________________________________________________________________________

Report Addressed to: _______________________________________________________________ Telephone ____________________

Address

_______________________________________________________________________________________________________

Type of Appraisal Report: ❐ Narrative ❐ Printed Form ❐ Other (identify) ___________________________________________________

Value Sought:

❐ Market Value

❐ Other (identify)

Date of value:

❐ Current

❐ Future

❐ Past

______________

Definitions Given For:

❐ Value Sought

❐ Interest To Be Valued

Interests Valued:

❐ Fee Simple

❐ Leased Interest

❐ Market Rent

❐ Other (identify)

❐ Easements

❐ Other (identify)

__________________

______________

Assumptions and

❐ Standard

❐ Consistent with

Real Estate Valued

❐ Land

❐ Improvements

Limiting Conditions:

Valuation Process

❐ Ground Lease

❐ Personal Property

❐ Third Party

❐ Unreasonable or

❐ Other (identify)_______________

Report

Excessive

Comments:

Does the report adequately contain or identify:

Yes

No

N/A

Yes

No N/A

Property Location/Address:

❐

❐

❐

Owners of Record

❐

❐

❐

Legal Description

❐

❐

❐

History of Ownership

Real Estate Tax Information

❐

❐

❐

If Applicable to Subject Property:

Assessments, Bonds, etc.

❐

❐

❐

Amount of Purchase Price

❐

$____________

Existence of:

Pending Sales Price

❐

$____________

Deed Restrictions

❐

❐

❐

Asking Price

❐

$____________

Covenants, Conditions, Restrictions

❐

❐

❐

Option Price

❐

$____________

Moratoriums

❐

❐

❐

Other

❐

$____________

Comments:

Does the report adequately describe or identify:

Does report:

Region

❐ Yes ❐ No ❐ N/A

Sum up and rate the above area

❐ Yes ❐ No ❐ N/A

City

❐ Yes ❐ No ❐ N/A

Identify and discuss important trends

❐ Yes ❐ No ❐ N/A

Neighborhood

❐ Yes ❐ No ❐ N/A

Identify nuisances or hazards

❐ Yes ❐ No ❐ N/A

Comments:

Comment upon the descriptions and analysis of the following:

IMPROVEMENTS:

SITE:

Adequate description of physical features ❐ Yes ❐ No

Adequate description of physical features❐ Yes ❐ No

Attention given to:

Identification of encumbrances

❐Yes ❐ No

Quality

❐ Yes ❐ No

Does the report state adequacy of site for

Functional Utility and Appeal

❐ Yes ❐ No

existing or proposed use

❐Yes ❐ No

Age

❐ Yes ❐ No

Utilities available

❐Yes ❐ No

Condition

❐ Yes ❐ No

Special Problems:

Hazardous Conditions

❐ Yes ❐ No

Flood

❐Yes ❐ No

ZONING:

Environmental Hazards, Seismic, Toxic etc.

Statement

❐ Yes ❐ No

Other (identify)_________________

❐Yes ❐ No

Definition

❐ Yes ❐ No

Comments:

Definition

❐ Yes ❐ No

Does property conform to zoning and

Components

❐ Yes ❐ No

neighborhood

❐ Yes ❐ No

Conclusion of Highest and Best Use______________________

Is use legal and physically possible

❐ Yes ❐ No

Current zoning ______________________________________

Has the report in this or other sections discussed:

Status zoning change _________________________________

Marketability (supply-demand, market trends,

Status of building permit (if possible construction) ____________

absorption occupancy levels)

❐ Yes ❐ No

Does report discuss feasibility/profitability

❐ Yes ❐ No

Other (identify) ____________________________________

Were other studies/reports considered

❐ Yes ❐No

Comments:

Comment and rate the approaches to value:

COST APPROACH:

Satisfactory

Unsatisfactory

DISCOUNTED CASH FLOW ANALYSIS (DCF)

Format

❐

❐

Satisfactory

Unsatisfactory

Adequacy of data

❐

❐

Format

❐

❐

Source of costs

❐

❐

Adequacy of data and support for:

Land value estimate

❐

❐

Holding Period

❐

❐

Estimated cost new

❐

❐

Growth Rates

❐

❐

Depreciation estimate

❐

❐

Discount Rate

❐

❐

SALES COMPARISON APPROACH:

Development of Cash Flow Estimates ❐

❐

Format

❐

❐

Reversionary Value

❐

❐

Adequacy of data

❐

❐

Other Methods of Processing Income

Sources of data

❐

❐

Stream (Mortgage Equity, Band of

Summary of sales table

❐

❐

Investments, etc.)

❐

❐

Use of adjustment grid table

❐

❐

RECONCILIATION:

Comparative analysis of sales

❐

❐

Indicated values are:

INCOME CAPITALIZATION APPROACH:

Cost Approach

$ __________

Format

❐

❐

Sales Comparison Approach

$ __________

Selection of proper capitalization

Income Approach

$ __________

method

❐

❐

DCF Analysis

$ __________

Adequacy of data and support for:

Other (Pending Sale, etc.)

Comparable Rentals

❐

❐

Value Conclusion

$ ________

Vacancy and Loss Factor

❐

❐

Allocation as Follows:

Operating History

❐

❐

Land

$ __________

Rent Roll

❐

❐

Improvements

$ __________

Income Estimate

❐

❐

Personal Property

$ __________

Expense Estimate

❐

❐

Other

$ __________

Net Operating Income

❐

❐

Total Value

$ ________

Capitalization Rate

❐

❐

Does the report contain a certification ❐ Yes

❐ No

Does the principal appraiser make

Is the report co-signed

❐ Yes

❐ No

statement of concurrence with value

Did the principal appraiser sign the

conclusion

❐ Yes

❐ No

report

❐ Yes

❐ No

Does the report contain appraiser(s)

Did the principal appraiser personally

qualifications

❐ Yes

❐ No

inspect subject property

❐ Yes

❐ No

Section VIII — Final Rating of Appraisal

Acceptable

Unacceptable

Acceptable

Unacceptable

Report Format

Property Valuation:

Readability and neatness

❐

❐

Feasibility/Profitability

❐

❐

Mathematical accuracy

❐

❐

Market Trends

❐

❐

Exhibits (Photos, Maps, etc.)

❐

❐

Cost Approach

❐

❐

Appraiser’s analytical ability

❐

❐

Sales Comparison Approach

❐

❐

Purpose and function of appraisal ❐

❐

Income Approach

❐

❐

Property identification

❐

❐

DCF

❐

❐

Locational analysis

❐

❐

Reconciliation

❐

❐

Property Description

❐

❐

Date of Appraisal

❐

❐

Site

❐

❐

Overall Rating of Appraisal

Improvements

❐

❐

Highest and Best Use

❐

❐

Scope of Review:

If reviewer does not concur with the soundness if conclusion, then

Read report

❐ Yes

❐ No

what is the recommended action:

Interviewed appraiser

❐ Yes

❐ No

❐ Totally reject appraisal

Field Review

❐ Yes

❐ No

❐ Have appraiser rework, revise, update the appraisal

Does the Reviewer concur with

❐ Have another appraisal prepared by someone else

the soundness of conclusion:

❐ Yes

❐ No

❐ Other

Copyright © by the National Association of Review Appraisers and Mortgage Underwriters P.O. Box 879, Palm Springs, California, 92263 USA. This form

Review Form No. 4002

may be reproduced without written consent, however, the “National Association of Review Appraisers and Mortgage Underwriter’s must be acknowledged and credited.