Real Estate Markets & What They Tell Us

Appraisers are not professionally engaged to express opinions.  Instead, they are employed for their knowledge of accepted valuation methods, and techniques of data analysis.  Their ability to apply professional judgment as to how those methods should be applied depends on the facts of the assignment. Trained appraisers are required by professional, state, and federal standards to let market evidence dictate the parameters of value.  In cases of Market Value, adhering to these standards ensures that appraisers do not express personal opinions. Research and analysis may determine broader research is necessary, if results are mixed or inconclusive. Through this process appraisers ensure that they can ultimately express their findings as to the market’s opinion of value rather than their own. Findings are not intended to please or displease clients or others --- only report what market evidence supports. Findings are based upon a financial, economic, and societal system that was established during the 1920s and 1930s to provide more stable markets in which market participants and others could have confidence and knowledge in “real estate values.”  Prior to the evolution of this system, loans generally were not available, and abuses were widespread.

AgWare's Appraisal Forms

Each of the forms is a summary of sales transaction data from which the approaches to value are summarized.  Those forms may be accompanied with narratives, but most readers, including financial intermediaries and review appraisers, are likely to read at the summaries first, and perhaps only later review the underlying support.  Thus, if the summaries are incorrect or lack explanation, errors, or misleading elements are contained therein, the appraiser has created a misleading appraisal report.  Thus, the forms must stand on their own and the appraiser must explain the strengths and weakness of each market and their research beyond just what the form may require.  In valuation circles, this means matching the research and analysis with the appraisal complexity to solve the valuation problem --- not simply corresponding to a blank on the form.

ClickForms Additions & Changes as of August 2020

These comments are directed to the ClickForms portion, a release with the following pages that are now our new standard and visible in the “ “UAAR (New)” or “Common” folders.  We recognize hesitancy for change, but please take the time to open, view, and/or print each new page. The 2020 Case Study is available in the "Template" folder and "page help" linked to that case study.  We believe most of the changes benefit data analysis and the reporting process centering on a higher degree of DataLog integration.  AgWare hopes our users also transition into geo-referencing (lat/long) to allow distance measurement between properties displayed in the Sales Comparison Grid (type "Distance to" into the grid, but sales AND subject must have coordinates).

Common Folder (forms typically used for all reports)

  1. Subject QuickStart (SQS) that synchronizes with DataLog files to enable "save a 'subject' as a “sale” and visa versa --- and populate the Report Summary, Subject Property information, and the Reconciliation pages, including the allocation of the final value opinion
  2. Introduction
    • Cover pages
      • Cover Page (Auto fill with Image)
      • Cover Page (Auto fill)
      • Cover Page (Manual)
  1. Definitions & Assumptions
    • General Appraisal Definitions
    • Value Definition
    • Standard Limiting Conditions

UAAR (New)

  1. Introduction (Identifying the Subject and Base Information)
    • Report Summary (Single Property situation [typical])
    • Report Summary (Dual Properties in same report)
    • Scope of Work & Approaches Used or Omitted
    • Market Area Description
    • Highest & Best Use
    • Subject Land Description
    • Subject Improvement Description
  1. Income Approach
    • Income Approach
    • Income Capitalization Rate Source
  1. Sales Comparison Approach
    1. Sales Comparison (ER Procedure)
      • ER Land-Mix Adjustment Worksheet
    • Improvements (Head to Head): Traditional Procedure
      • Improvement Adjustment – Multiple Improvements on one page
      • Improvement Adjustment – Single Improvement (one at a time)
    1. Improvements (Non Head to Head):  New Procedure
      • Improvement Value ONCE from sale contributions (page can be replicate many times, i.e., multiple locations or multiple specialty improvements
        • Improvement Adjustment Summary:  One or more pages above summarized and improvement adjustment applicable between each sale and subject reflecting the subject’s mixture
    1. Feature Pairings (comparisons to measure differences between properties with a feature v. those without)
      • Paired Sales – 1 Feature
      • Paired Sales – 3 Features (similar to original pairing page in Classic Forms (traditional)
  1. Conclusion
    • Reconciliation – Single Property
    • Reconciliation – Dual Property Situations (before v. after, “as is” v. “as proposed”, current v. retrospective, etc.)

UAAR (Classic)

An AgWare user can continue to use those forms for the time they are supported but alerts the user a new option is available.

NOTE:  The remaining Classic pages in use, that have been used in past years, are still available --- including the traditional land and building-mix forms.  Those folders are now identified as:

  1. QuickStart Page (traditional)
  2. Report Introduction
  3. Definition of Value
  4. Specialty Improvements
  5. Subject Description
  6. Highest and Best Use
  7. Data Analysis
    • Cost Info Worksheet
    • Depreciation Analysis
    • Excess Land Worksheet
    • Land Table Worksheet
    • Other Improvements Worksheet
    • Ratio Analysis Worksheet
    • Time Trend Analysis Worksheet
  1. Approaches
  2. Reconciliation
  3. Condemnation
  4. Certifications

Archived Forms

This folder contains the remaining historic forms used in prior years.  Those pages “retired” have been moved to the Archived Forms folder.  Your old reports will still open, but the pages “archived” will appear in RED in the Forms Manager.  Archived forms should not be used, i.e., math calculations may not work and/or contain outdated USPAP requirements/definitions.  

AgWare also added an Outdated Folder containing functional forms but a new format exists with a superior layout.  These forms will NOT appear in RED.