Understanding the specific market, expertise in property type, attention to detail, thoroughness and efficiency are the keys to a great appraisal.

At Bluegrass Industrial we stive for nothing short of what we refer to as Excellence in Report Writing.

Excellence in real estate appraisal Report Writing is defined by adherence to stringent professional standards, robust support for the valuation, clarity for the Intended User, and objective, bias-free language.

An exceptional report goes beyond merely stating a value. We provide compelling, well-supported, narrative explanations of the process/s, and analysis completed.  

This is balanced by our intention to save our clients unnecessary costs for reports which exceed their minimal needs, or desired outcomes. This is why we offer a variety or reporting options including highly comprehensive reports, which are completed at an additional cost. We also offer highly summarized reports to provide a very low cost option to clients who do not need the lengthy discussions.

We advise our clients regarding the minimum Report Development that will be sufficient for them to accomplish their objectives. This can result in significant cost savings for them.

We do this while at the same time informing them of more inclusive report options, and the benefits of such extended reports.

Regardless of the Reporting Options the client needs, the same exceptional Appraisal Development work is completed so that the value is the same regardless of the Report Development option chosen.

We make every effort to help the client understand our products so that he or she will chose the most cost effective, advantageous option which best meets their individual objectives.

Regarding Appraisal Reporting Options Bluegrass Industrial Appraisal offers five choices. The most common is the Summary Report which is, in most cases, sufficient for Mortgage Lending Purposes. In terms of price, it is the middle ground. It is important to understand that the level of reporting has no impact on the appraised value reported or the findings which the appraiser reached. We are addressing the method of reporting findings to the client, not the level of investigations or steps taken during the appraisal process. It is important to remember the actual appraisal is always held in the appraiser’s office, not delivered to the client.

The choices are: Comprehensive Report, Standard Report, Summary Report, Brief Report, Minimal Report, and Letter of Value

With regard to commercial and industrial real estate appraisals in the Louisville, KY market, the most common and customarily accepted appraisal reporting level is the Complete Appraisal communicated in a Summary Report. This option provides the highest confidence in the reported results, includes more than sufficient detail for most of our clients, but is also priced at a significant discount over more comprehensive reports.

First and foremost, Bluegrass Industrial is committed to Excellence in Report Writing. Appraisals have two Primary Components. They are Development & Reporting. Bluegrass Industrial offers eight choices in Written Narrative types of appraisal products.

1. Complete Appraisal; Comprehensive Report
2. Complete Appraisal; Standard Report
3. Complete Appraisal; Summary Report
4. Complete Appraisal: Brief Report
5. Complete Appraisal; Letter of Valuation
6. Limited Appraisal; Brief Report
7. Limited Appraisal; Minimal Report
8. Limited Appraisal: Letter or Valuation

In general, Written Narrative Reports are far more comprehensive than standardized form appraisals.

A Comprehensive Report is a Complete Appraisal, communicated in an exhaustive, narrative styled report format, whereby the entire appraisal process is described, step by step, in a manner in which a non-licensed person, possessing a high school education, should be able to read through the report and have a general understanding of the steps taken in the investigative processes of the appraisal, followed by the analysis of the market data, which lead to the determination of market value. In every case a Comprehensive Report will be a Complex Report as a result of the extensive analysis required.

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Some but not all Intended Users of appraisal reports are familiar with the appraisal process, however, having taken the time to read a properly prepared comprehensive appraisal the Intended user, no matter if they are a property owner, a potential purchaser or a seasoned professional has a high level of understanding and confidence in the written report they received, and the reasons for its final conclusion/s. Some key aspects of the Comprehensive Report are as follows:

• Maximum Detail:  Provides exhaustive coverage of the subject property, market conditions, and the appraiser's analysis and conclusions.
• All Data Included:  No information is held in external files; everything needed to understand the appraisal is present in the report.
• Comprehensive Scope:  Includes detailed descriptions of the scope of work performed to develop the appraisal.
• Time and Cost:  This level of detail requires significant time and effort from the appraiser, resulting in a higher cost compared to other report formats.
• Common Uses:  Frequently used for commercial real estate appraisals, where lenders, courts, and government agencies require detailed information to support decisions.

The Comprehensive Appraisal Report stands in contrast with lesser valuation reports as listed below.

With regard to our appraisal services the following appraisal report types are USPAP compliant.

• Summary Report:  Summarizes the data and analysis, with some additional information potentially available in separate files. Although this is a Summarized Report option, the level of Appraisal Development is the same as in the Comprehensive Report option.

• Brief Report:  This is a highly summarized Complete Appraisal which we offer for clients who have a goal of cost savings and minimal appraisal fee. Although we provided a highly summarized report, the level of Appraisal Development is the same as in the Comprehensive Report option.

The following report types, can communicate either a Complete Appraisal, being USPAP compliant, or a Limited Appraisal depending on client needs and the agreement between the appraiser and the client.

• Limited Report:  This report provides limited details, to varying degrees, of the appraisal process which was followed:    

• Restricted Report: A Restricted Appraisal Report is a type of appraisal report that provides a highly summarized, limited description of the appraisal process and is intended for one single user. It is not sufficient for mortgage lending or disputes. And does not satisfy USPAP or many other industry standards. However, it can be a useful and allowable type of report if used correctly. Its purpose is primarily economic value, in that it costs the client less money, and time effectiveness in that the client typically has a lesser wait to receive a completed report.

• Letter Format:  In some limited cases it may be appropriate, and favorable for a client to receive the appraisal report findings in a single page letter. The purpose of the single page letter is to save the client significant fees.

• Oral Appraisal Reports:  Similar to the single page letter format the oral appraisal report format In some limited cases it may be appropriate, and favorable for a client to receive the appraisal report findings in a single page letter. The purpose of the single page letter is to save the client significant fees. This report is delivered verbally with no written correspondence. In today’s real estate market is has very little usefulness and is not commonly used.

The following appraisal report types are not USPAP compliant. Bluegrass Industrial Appraisal does not provide the services listed below. However, there are other professionals which may specialize in these types of limited valuation services:

• Brokers Price Opinion Letter:  This type of appraisal report is not communicated by a certified real estate appraiser, or at least an appraiser acting in the capacity of an appraiser, but rather a licensed real estate broker or real estate sales associate. A Broker Price Opinion (BPO) is a valuation of a property's market value performed by a licensed real estate broker or agent, often for lenders or property owners seeking a quicker, less expensive alternative to a formal appraisal. BPOs rely on the broker's expertise, local market knowledge, and analysis of comparable properties to provide an estimated value range, and they can be an effective tool for a variety of real estate transactions, such as short sales and winning new listings.

• Real Estate Evaluation Letter:  Similar to a Broker’s Price Opinion Letter:  A real estate evaluation is an independent assessment of a property's market value performed, often performed by a real estate agent. The evaluation process does not necessarily follow the recommended appraisal process, and provides a limited report outlining the property's condition, market analysis, and valuation methods applied to determine its value.

In addition to the summary, brief and minimal reporting options another type of report which can save the client significant costs are appraisals completed on standardized forms. The following are reporting options with their respective property types listed. For example, when having a large land tract appraised the Standard Form NL – Land 5/2007, Summary Report can be completed as a significant cost savings when compared to Narrative Report Options. Below is a list of examples of commonly utilized Standardized Reporting Forms. If cost savings is one of your objectives, ask us to tell you how we might be able to save you significant costs by completing your next appraisal report on a Standardized Report Form.

Commercial Development Land; Standard Form NL - Land 5/2007; Summary Report

Single Family Residential; 1004 URAR; Summary Report

Residential Condominium; Standardized Form FNMA Form 1073

Commercial Condominium; Standard Form FNMA Form 1073

Manufactured Home; Standard Form FNMA Form 1004C

Multi-Family 2-4 Unit; Standard Form FNMA Form 1025

A complex appraisal report is a valuation report for a property that has atypical or unique characteristics, making it difficult to appraise using standard methods. This complexity arises from unusual property features, problematic market conditions, or uncommon forms of ownership, requiring the appraiser to use more creative approaches and more of the available valuation methods to establish a reliable value. Aspects of a Complex Appraisal Report include:

1. A typical Property Features:  The property itself might be unique, or an "outlier" compared to others in its area. Examples include:
   1. Unique architectural styles or design
   2. Significant functional deficiencies or structural issues
   3. Special features like accessory dwelling units or conversions
   4. Properties with environmental issues
   5. Properties with a history of stigma (e.g., a crime took place there)
2. Market Conditions:  The surrounding market might not have sufficient comparable properties for comparison.
   1. A lack of active market
   2. Market conditions that are unusual for the property type or location
3. Unusual Ownership:  The way the property is owned can make the appraisal complex.
   1. Community land trusts
   2. Leaseholds or life estates
4. Location:  A property's specific location can contribute to complexity.
   1. Waterfront properties in a non-waterfront area
   2. Properties in rural or remote areas
   3. A property located near an incompatible business, such as a daycare near a pawn shop.

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Complex Appraisal Reports requires:

1. More Valuation Approaches to Value:  For nonresidential properties, a complex appraisal often uses all three approaches to value (cost, sales comparison, and income). For residential property, it typically relies on at least two of the three approaches, with the sales comparison approach being one of them.
2. Specialized Knowledge:  The appraiser needs more extensive research, creative problem-solving, and specialized knowledge to address the unique aspects of the property.
3. Detailed Analysis:  The report will reflect the expanded scope of work needed to address the unusual aspects of the property or market.

This option is by far the most commonly ordered type of report. In most cases this level of reporting satisfies the minimal reporting level required for mortgage financing, and can be sufficient for variety of uses including buying, selling, refinancing, wills, estates, and tax appeals.

It could be said that this level of reporting is the most cost effective option. The Summary Report includes sufficient documentation, within the report delivered, to satisfy most of the common reasons appraisals are ordered. But omits enough information, usually considered not to be necessary, and as a result, saves the client significant costs.

In most cases, our lender clients order this level of reporting as it satisfies their underwriting standards, while saving their borrowing clients hundreds of dollars or more.  

In most cases courts consider this level of reporting to be satisfactory except in cases of highly contested legal disputes.

This type of report options usually includes 60 to 100s pages or written report content.

In the commercial appraisal industry within the Louisville, KY and Southern, Indiana markets, the Summary Report is considered the customary level of development for most mortgage lenders.

Bluegrass Industrial Appraisal completes more Summary Reports than any other report development level.

The primary benefit of the Brief Report is cost savings. However, This reporting level will not be sufficient for mortgage purposes. Persons who may benefit by the cost savings of the Brief Report include:

• Realtors planning to list a property
• Property owners intending to sell
• Prospective buyers who want an opinion of value prior to making an offer
• Prospective buyers who want an opinion of value prior to following through on an executed contract

These types of buyers should find this level of reporting sufficient while he or she enjoys the benefit of a significantly reduced appraisal cost.

This level of reporting is typically 35 to 60 pages of written report.

Many Realtors in the Louisville, Kentucky market, and nearby areas consider the Brief Appraisal report to be a very viable option, giving them confidence in their listing price while saving them considerable dollars on the cost of an appraisal report.

Here at Bluegrass Industrial Appraisal has completed thousands of these types of reports for Louisville Realtors.

The primary benefit of the Letter of Value is cost savings. However, This reporting level will not be sufficient for mortgage purposes. In This level of reporting is only sufficient in cases where one person desires the opinion of a professional appraiser. It is only to be used in cases where there is one single party, never a second or third party, such as a buyer, a lender or a court.

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Persons who may benefit by the cost savings of the Letter of Value include:

• Realtors planning to list a property
• Property owners intending to sell
• Prospective buyers who want an opinion of value prior to making an offer
• Prospective buyers who want an opinion of value prior to following through on an executed contract
• Person who is estate planning

This level of reporting will save the client hundreds of dollars and is delivered in a 2 or 3 page letter.

Within the commercial appraisal market in Louisville, KY this type of appraisal is not customary, ordered very few times from our office. However, this is a service we offer here at Bluegrass Industrial for those clients who desire the most economical, low cost appraisal option.

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