Demo Report Grading Sheet - ASFMRA

American Society of Farm Managers and Rural Appraisers
Grading Sheet -- Appraisal Report
Applicant
Date
Grader
The following are guidelines for consideration in grading the appraisal report submitted for
(check one):
( ) Accreditation
( ) Advance to Professional
Grading Categories Remarks Points Deductions
TITLE PAGE
LETTER OF TRANSMITTAL
TABLE OF CONTENTS
SUMMARY OF SALIENT FACTS
ASSUMP. & LIMIT. CONDITIONS
OBJECTIVE DATE & OWNERSHIP
DEFINITION OF VALUE
PROPERTY RIGHTS APPRAISED
LEGAL DESCRIPTION
AREA ANALYSIS CONSIDERATIONS
Physical
Social
Economic
Governmental
SEE NOTE BELOW
NOTE: The first 13 lines in this section are required. NO credit is given for their presence, BUT rather a loss of
points for their absence or inadequacy -- Possible minus 26 points total (2 points per line).
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Grading Categories Remarks Points Deductions
PROPERTY DESCRIPTION
Land
Location, Access, Land Use & Tenure 5
Terrain & Topography 5
Soils 5
Vegetation 5
Water Rights, Irrigation Carrying Capacity --
Crop Yields, Farm/Ranch Operation 5
Utilities 5
Taxes & Assessments 5
Hazards & Detriments 5
Zoning, Easements, Restrictions 5
Climate Considerations 5
Crop Allotments 5
Land Improvements
Buildings
Fences, Wells, Corrals, Windmills, Pumps, Dams 5
Quantity, Quality, Condition, Effective Age, Remaining
10
Economic Life & Functional Utility of Each
HIGHEST AND BEST USE
Uses for which Property is Adapted 4
Legal & Permitted Uses 4
Market Demand for Potential Uses 4
Most Probable Use of Property 4
Definition 4
DISCUSSION OF APPRAISAL PROCESS *
COST APPROACH
Building Cost New & Definition of Cost Used 4
Source of Cost Data 4
Calculations 8
* This category is required. There is meant to be no credit for its presence, but rather a loss of up to 5 points for its
absence or inadequacy.
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Grading Categories Remarks Points Deductions
COST APPROACH (Continued)
Estimate of Depreciation
Physical Deterioration
Definition 4
Explanation 4
Calculation 8
Functional/External Obsolescence
Definition 4
Explanation 8
Calculation 8
Estimate of Land Value
Comparable Sales Presentation 8
Tabular Analysis & Value Derivation 20
Value by Cost Approach & Its Validity 20
INCOME CAPITALIZATION APPROACH
Income Estimate
Crop Share/Comparable Rentals 10
Tabular Analysis of Gross Income 10
Conclusion of Gross Income 5
Expense Estimates
Itemized Expenses 10
Explanation of Expenses 10
Conclusion 5
Capitalization Rate Selection
Comparable Sales Presentation 10
Tabular Analysis & Rate Derivation 10
Conclusion of Capitalization Rate 10
Value by Income Approach & Its Validity 20
SALES COMPARISON APPROACH
Comparable Sales Presentation
Courthouse Date 5
Price, Terms, Verification 5
Description, Analysis & Allocation 20
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Grading Categories Remarks Points Deductions
SALES COMPARISON APPROACH (Continued)
Sale to Subject Comparison
Selection of Variables/Value Factor 15
Explanation of Adjustments 20
Tabular Comparison Presentation 15
Value by Sales Comparison Approach & Its Validity 20
RECONCILIATION
Cost Approach Discussion 5
Income Approach Discussion 5
Sales Comparison Discussion 5
Final Conclusion 5
CERTIFICATION
ADDENDA
Maps
Subject Land Features 5
Subject Soils 5
Location Map of Subject & Comparables 5
Plat Maps of Comparable 10
Photos
Subject Land Features 5
Subject Improvements 5
Comparable Sales 5
Qualifications of Appraiser
CLARITY, READABILITY, PROFESSIONALISM
Format & Organization 25
Grammar, Punctuation, Spelling 15
Sentence Structure & Writing Style 10
TOTAL POSSIBLE
POINTS
500
LESS TOTAL
DEDUCTIONS
TOTAL SCORE
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375 POINTS ARE PASSING
Demonstration Appraisal Report
Grading and Scoring
Regardless of overall score, a report must also attain a minimum of 75 percent (75 points out of the
100 allotted) in each of the three approaches to be acceptable for a passing grade. A grade below
75 percent in any one approach is a cause for failure of the report.
Considering the present grading sheet, the same grading categories will be utilized and the point
distributions will be as follows:
First 13 Lines*
Property Description Section
Highest and Best Use
Discussion of Appraisal Process**
Cost Approach
Suggested distribution as per grading sheet
Income Approach
Suggested distribution as per grading sheet
Direct Sales Comparison Approach
Suggested distribution as per grading sheet
Reconciliation
Suggested distribution as per grading sheet
Certification**
Maps, Photos, Exhibits
Suggested distribution as per grading sheet
Qualifications of Appraiser**
General - Clarity, Readability, Professional
Suggested distribution as per grading sheet
TOTAL
Required
70 Points
20 Points
Required
100 Points
100 Points
100 Points
20 Points
Required
40 Points
Required
50 Points
__________
500 Points
* NO credit for their presence, BUT rather a loss of points for their absence or inadequacy —
Possible minus 26 points total.
** NO credit for its presence, BUT rather a loss of points for its absence or inadequacy —
Possible minus 5 points.
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