5601.10: Required exhibits and addenda for appraisal report forms (08/29/18)

At a minimum each appraisal report must include the exhibits required for the property type. The exhibits must meet the requirements provided in this section.

(a) Exhibit requirements for appraisal reports

(i) Photographs

Photographs of the subject property must be original electronic images that are in color and illustrative of the property. The photographs must be clear, appropriately identified and must clearly show the improvements, including any physical deterioration of the property, amenities, conditions and external influences that have a material effect on the market value or marketability of the subject property.Photographs of the comparable sales must be clear electronic images. Copies of multiple listing service (MLS) photographs are acceptable.

(ii) Building sketch

(A) Detached properties and end-unit properties

For detached 1-unit properties, end units in Planned Unit Developments (PUDs) and Detached Condominium Units, the exterior sketch of the improvements must include the dimensions and calculations the appraiser used to determine the size of the subject property.

(B) Attached properties

For interior units in PUDs and attached Condominium Units, an interior perimeter sketch is acceptable. Appraisers may have relied on the dimensions and estimates for gross living area as shown on the plat or exhibits to the Project Documents of a Condominium Project or Planned Unit Development, or provided legible photocopies of floor plans or individual unit plats that include the dimensions and calculations.

(C) 2- to 4-unit properties

For 2- to 4-unit properties, the sketch must also include each unit's layout and entries, and indicate the square feet of living area per unit and the gross building area (GBA).

(iii) Location map

The location map must identify the location of the subject property and any comparables including sale, rental and listing comparables as applicable. This map may be a photocopy of a printed street map showing the location of the subject property and comparable properties in relation to major streets and influences such as parks and schools.

(b) Exhibits required for appraisals with interior and exterior inspections (Forms 70, 70B, 72 and 465)The following exhibits that meet the requirements in Section 5601.10(a) are required for appraisals with interior and exterior inspections:

(i) Photographs of the subject propertyAn appraisal report with an interior and exterior inspection must include at least the following:

A front view of the subject property
A rear view of the subject property
A street scene identifying the location of the subject property and showing neighboring improvements
The kitchen of the subject property
All bathrooms of the subject property
The main living area of the subject property

The appraiser must include additional photographs, as needed, to show any physical deterioration, improvements, amenities, conditions and external influences that materially impact market value or marketability.

(ii) Photographs of comparable sales

The report of an appraisal with an interior and exterior inspection must include at least one clear photograph that shows the front of each comparable sale.The appraiser must include additional photographs, as needed to show the improvements, amenities or external influences that materially impact market value or marketability.

(iii) Building sketch See Section 5601.10(a)

(iv) Location map

See Section 5601.10(a)

(c) Exhibits required for appraisals with exterior-only inspections (Forms 466 and 2055)An appraisal report based on an exterior-only inspection must include all the following that meet the requirements of Section 5601.10(a) :

At least one photograph that shows the front view of the subject property
Location map indicating the location of the subject property and any comparables, whether comparable sales, listings or rentals

(d) Exhibits required for appraisal updates (Form 442)

If the photographs in the original appraisal report represent the subject property accurately, new photographs of the subject property are not required.Photographs of any factors that affect the value, condition or marketability of the subject property should be provided if not already part of the original appraisal report.Photographs that meet the requirements of Section 5601.10(a) are required for any new comparable sales.

(e) Other necessary exhibits and addenda for appraisal reports

The appraiser must provide any additional information or data that is needed to provide the lender/client with an accurate and adequately supported appraisal. The Seller may request that the appraiser provide additional exhibits or addenda as part of the appraisal scope of work. Any exhibit or addenda must be incorporated into the appraisal.