Engagement Letters

It is important to sign an engagement letter with your appraiser that spells out the details of your assignment.  Information about the property including; address, assessor's parcel number and legal description are important details to supply the appraiser.  Also important is information that discusses expectations regarding the delivery date, agreed upon fee and how it is to be paid and and special requirements.  

The engagement letter will spell out whether the report is to be verbal, a summary report or a complete (self-contained) report.  Appraisals usually seek a market value, and an engagement letter details what value is to be sought by the appraiser.  Thus, engagement letters are important because they protect both the client and the appraiser.

Engagement letters usually discuss who is responsible for the completion of the appraisal report.  Often appraisers use their staff to assist them with data collection, report preparation, printing, binding and other tasks.  The analytic portions of the report are usually completed by the primary appraiser or jointly by the primary appraiser and another qualified, licensed appraiser.  

Since appraisers must often spend a great deal of time; inspecting the property, collecting market data, inspecting comparable sales and analyzing the subject and comparables, they generally accept a portion of the fee in advance to cover their expenses related to those efforts.   

Contact us with your questions or concerns regarding engagement letters or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.  

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.