Appraiser's Blog

Data or verification source(s) used by the appraiser must be disclosed on the appraisal report. Single or multiple sources for data and verifications are acceptable provided the appraiser verifies the comparable sales. The appraiser is required to state the specific data source(s) used and must refrain from using broad categories such as "public records." Regardless of the data source(s) used, there must be sufficient information available from the data to determine condition of the property, existence of financing concessions, physical characteristics of the subject property and comparable sales, and determination if it was an arm's length transaction. Many times public records do not provide this degree of information; therefore, the appraiser would need to obtain the required data elsewhere.

When comparable sales data is provided by parties that have a financial interest in either the sale or financing of the subject property, the appraiser must verify the data with a party that does not have a financial interest in the subject transaction. Please remember this requirement when obtaining data from builders and/or sales agents.