Scope of Work and Letter of Engagement for Appraisal Services
Pursuant to your request, this is an agreement to perform an appraisal inspection on the above named property.
The appraisal shall be prepared for (client named above) an is for sole and exclusive use of (client named above) unless otherwise stated within the report. We request that you seek our written authorization before releasing the report to any other party.
The purpose of this appraisal is to provide our professional opinion of the market value
of the property for the purpose stated within the report (Divorce, Pre Listing, Market Value, Bankruptcy, Estate or Purchase)
The definition of market value is as follows:
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto and (5) the price represents the normal consideration for the property sold unaffected by special or creativefinancing or sales concessions* granted by anyone associated with the sale.The appraisal will be prepared in accordance with the Uniform Standards of Professional Appraisal Practice.
Please review and return the executed/signed copy to us indicating your acceptance and approval of the terms set forth in this letter. The estimated completion date of the appraisal will be determined as of the date of the physical inspection or an agreed upon date prior. We agree to keep you informed of any delays or issues that may arise during the course of our work in preparing the report that may change the delivery date.
We will furnish you with a copy of the appraisal report. Our fee for this appraisal will be quoted to you and is the agreed upon fee that we have discussed. This fee does not include the cost of certain expenses that may be incurred in the preparation of the report.The fee stated in this letter is the fee for the site visit and report ONLY... Additional fees may occur in certain circumstances. Examples include but not limited to Court Testimony, additional information required after the report has been submitted or additional requirements that will require the appraiser to perform more work.
We will proceed with the preparation of this appraisal upon receipt of a signed copy of this letter. All payments are to be made before any report is submitted to the client. Payments should be made after the inspection takes place. The appraiser may make exceptions to this however in that case a retainer of HALF the quoted fee is due prior to any services.
NOTE: Appraiser Independence Requirements: This appraiser completed this assignment with no influence on value (written or verbal) from any party connected with this assignment as referenced in the signed certification. To this appraiser’s knowledge and only to the extent to which this appraiser would know (from the appraisal receiving end), the subject appraisal is in compliance with the Fannie Mae/Freddie Mac Appraiser Independence Requirements (AIR), appraiser independence safeguards (i). Requirements such as acceptability of subsequent appraisals (ii), borrower receipt of appraisal (iii), appraiser engagement (iv), use of reports (v), transfer of appraisals (vi), referrals of appraisal misconduct (vii), and compliance (viii) are requirements that are unknown to this appraiser. This appraiser is not related to the owner of the subject property, and if this is a purchase, not related to the buyer.