Real Estate Appraisal Practice Exam

What part of an appraisal report would you expect to see first in a narrative appraisal report for a commercial property?

1. Cover letter

2. Introduction

3. Scope of work

4. Executive summary

The correct answer is: Cover letter

The first component you would typically encounter in a narrative appraisal report for a commercial property is the cover letter. The cover letter serves as an introduction to the appraisal report, providing the recipient with essential context about the purpose of the report and the appraiser's qualifications. It often outlines the key elements, such as the property being appraised, dates of appraisal, and the intended users of the report. This format is designed to establish a formal presentation and to set the tone for the detailed findings that will follow in the report. The introduction, while also important, comes after the cover letter and delves deeper into the specifics of the appraisal process and overall objectives. The scope of work explains the methodologies and procedures employed during the appraisal process, and the executive summary summarizes the key findings and conclusions. However, the cover letter is the crucial initial contact point that lays the groundwork for the detailed analysis to follow.