Effective Date: This policy was last updated on 02 January 2025
Appraisal Site Visit Policy
Introduction
One of the most important events in a real estate appraisal is the site visit or observation. Several important factors a relevant to the site visit event, and many of our clients have questions regarding the site visit. This policy letter is an overview aimed at answering concerns and addressing key elements of the site visit.
Importance
The site visit is important. One of the largest elements of value relevant to the appraisal process and the determination of value includes quality, condition, amenities or features, challenges, and XXX of the property. The appraiser must verify numerous characteristics of the property, and for many clients the description and photographs of these characteristics are required to be included in the appraisal report.
The Uniform Standards of Professional Appraisal Practice (USPAP) and Alaskan Appraisal of Real Property Statutes require that the appraiser verifies and considers all and more of the following factors in the appraisal process (a general list):
- Site Size
- Improvement Characteristics
- Original Improvement Quality
- Current Improvement Condition
- Improvement Dimensions
- Rentable Area
- Gross Building Area
- Footprint
- Heating/Cooling Utilities
- Layout or Utility of the Improvements
Scope of Site Visit
The appraiser should inform the property contact of the full scope of the site visit required for the type of appraisal report. Different purposes (intended uses) of the appraisal often require different observation depths for the site visit. The scope could be as minimal as a review of available satellite images and historical data found online. The scope could be as extensive as a complete walkthrough of all spaces, interior and exterior, including all mechanical rooms, crawl spaces, attics, storage closets, sheds, and accessible lands. Typically, at a minimum, the appraiser will need to view the exterior of all improvements, the interior of all common spaces, mechanical rooms, and any rooms or areas requiring repair or renovations.
Commercial properties typically need to be prepared to show the appraiser the interior of each type of unit and facilitate spot measurements so the appraiser can verify the dimensions of the areas that have been provided.
Some clients require more extensive site visits. Some situations, such as litigation, dictate facilitating a complete site visit of all spaces. The following chart is a quick reference guide we’ve developed to assist clients and property contacts with the expectation of the appraisal site visit depth scope for the observation.
| Type of Property / Intended Use of Appraisal Report | View Exterior of Each Improvement | View Interior Common/Public Spaces | View Interior of Mechanical Rooms | View Private Spaces (lab areas, break rooms, restricted rooms | View Tenant/Leased Spaces | Walk Grounds / Property | View Attic & Crawl Space Areas | Loft / Mezzanine Spaces | Storage Sheds / Temporary Buildings |
| Residential 1 to 4 units | YES – Complete Walkaround | Yes – Shared laundry, storage, & entries | Yes -ALL | Yes – If applicable | Yes – Typically one of each type – ALL VACANT & Damaged | Yes | No - Unless the client requires it for the loan program or other need | No - Unless the client requires it for the loan program or other need | Yes |
| Residential Apartment Complex
5 + Units |
YES – Complete Walkaround | Yes – Shared laundry, storage, & entries | Yes -ALL | Yes – If applicable | Yes – Typically one of each type – ALL VACANT & Damaged Units, at least 10% of all units | Yes | No - Unless the client requires it for the loan program or other need | Yes | Yes |
| Commercial Warehouse | Yes – Complete Walkaround | Yes | Yes | Yes | Varies – Ask Appraiser | Yes – all improved areas (yards, parking, etc.) | Yes | Yes | Yes |
| Retail | Yes – Complete Walkaround | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Office | Yes – Complete Walkaround | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Industrial Warehouse | Yes – Complete Walkaround | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Desktop | No Site Visit | No Site Visit | No Site Visit | No Site Visit | No Site Visit | No Site Visit | No Site Visit | No Site Visit | No Site Visit |
Safety
The client is required by Rikrland Policy to disclose any potential safety risks associated with performing the site visit observation. If the site contains any hazardous areas where the use of personal protective equipment (PPE) would be prudent or necessary, this must be disclosed at initial contact with the appraiser. We supply our appraisers with the following PPE, which they can bring to the site visit if required:
- Reflective Safety Vest
- Hard Hat
- Eye Protection Glasses (Non Specialty)
- Leather Work Gloves (Drivers Gloves)
- Safety Toe Work Boots
- Ice-Grip Cleats
- Disposable Boot Covers
- Hearing Protection
If the site requires additional or more specialized safety equipment (PPE) for a particular hazard, the client must notify the appraiser and negotiate with our company Safety Officer, an acceptable solution to mitigate the risk of injury to our appraiser. Some remote sites require specialized equipment and tools for the appraiser to access the areas required for the appraiser. We maintain some special capabilities for accomplishing these tasks, however their necessity should be disclosed prior to contract engagement so their costs can be adequately anticipated in the appraisal quote process. See the Site Access section of this policy for further information regarding these capabilities.
It is the client’s responsibility to disclose and assist in mitigating any safety concerns to our appraisers. Some of our standard expectations include:
- Clear ALL walkways, doorways, access points, and paths of snow, ice, or other slip hazards. PRIOR to the schedule site visit date and time.
- Disclose and clearly mark any potential safety hazards. These might include broken boards, trip hazards, failed structural components, holes or weak floors.
- Remove any personal property that might prevent the access to any areas the appraiser might need to view. Move any personal property or equipment that may be blocking the appraiser’s viewing of any required area.
A personal representative of the client or an appropriately qualified person must be designated by the property contact to accompany the appraiser on the site visit. It is an expectation that someone qualified to answer questions, who is knowledgeable about the subject property, WILL ACCOMPANY the appraiser during the site visit. If this is not possible, this must be disclosed prior to the appraisal engagement contract execution so this exception can be analyzed by our company’s Safety Officer, and the potential risks mitigated and additional costs included in the contracted fee.
Violations of this policy can result in a canceled contract or rescheduling of the site visit (for a fee) and delays in the completion of the report beyond the contracted delivery date. If a site is not ready for the appraiser when they arrive, a trip fee and re-schedule or cancellation will occur. See RVS Appraisal Cancellation Policy for more information about voluntary or involuntary cancellations of appraisal engagement contracts and the fees associated.
Access
Each appraisal engagement contract and fee is negotiated and offered based upon reasonable assumptions and disclosures of the site’s access.