Specialty appraisal
When the appraisal is going to be evidence
An appraisal prepared for negotiation and one prepared for trial contain the same analysis. They are not written the same way, because one of them will be read aloud by an opposing lawyer.
What changes
The same analysis, written for a hostile reader
In a litigation appraisal every assumption is a potential question, every omitted sale is a potential accusation, and every adjustment must have a stated basis. The discipline this imposes usually improves the report, which is one reason counsel often instruct an appraiser on that footing from the start even when a case may settle.
Three things change in practice. The data file matters as much as the report, because it will be produced. The reasoning must be explicit rather than implied, because an appraiser who cannot explain an adjustment on the stand has effectively lost it. And the scope must be complete, because approaches considered and rejected must be explained rather than silently omitted.
What counsel looks for
The qualities that make an appraisal useful at trial
Supportable adjustments
Every figure traceable to market evidence rather than to experience alone.
Verified sales
Each comparable confirmed with a party to the transaction, with the verification recorded.
A clean file
Working papers, correspondence and data organised on the assumption they will be produced.
Explicit reasoning
Conclusions stated with their basis, not left for the reader to infer.
Consistency
No conclusion in one section that contradicts an assumption in another.
Credible presentation
An appraiser who can explain the work clearly to people who do not value property for a living.
Scope
Where this site stops and the expert witness question begins
This page is about the appraisal: how it is prepared when litigation is in prospect and what makes it defensible. The separate questions of when to retain an expert, how to instruct one, what happens at deposition and how admissibility is challenged belong to the practice of using experts in a case.
Those are covered on Eminent Domain Expert Witness, which deals with experts of every kind in condemnation matters, not only appraisers.
Questions about appraisal for litigation
Should I tell the appraiser the case may go to trial
Yes. It affects scope, documentation and the form of the report. An appraiser told late must often revisit work that would have been done differently from the start.
Can the same appraiser negotiate and then testify
Usually yes, and continuity helps. What matters is that the opinion was formed independently and has not shifted to suit the negotiating position.
Will my appraisal be disclosed to the agency
In litigation, an appraisal relied on by a testifying expert is generally disclosed. Rules on draft reports and communications with counsel vary by jurisdiction, so the engagement terms should address it.
Get a valuation question answered
If an offer has arrived and the number does not match what you believe the property is worth, the appraisal behind it is the place to look. Start with the pages below.