In a stable real estate market or when appraising traditional commercial properties, there is a pretty standard appraisal process to follow to deliver a credible appraisal report.
In recent years, we’ve continued to accept the invitation from numerous clients to appraise unique and highly complex valuation assignments. It’s required us to elevate our standards and thinking to deliver the same type of results. This article is intended to share more of that process to help you understand the methods we are using to ensure the same standards and quality is achieved.
How We Think Through Complex Appraisal Assignments
Over the past year, we’ve spent a lot of time as a team improving how we approach complex assignments.
Not from a technical standpoint–we’ve been doing that for a long time.
But the thinking behind the appraisal.
Because one thing has become very clear to me after 20+ years of doing this:
The hardest part of an appraisal after the valuation analysis is completed is weaving it all together into a narrative that holds up under scrutiny. This is where the challenge lies.
Where Most Reports Break Down
Most appraisal reports fall apart when the analysis doesn’t make sense from beginning to end. The math can be accurate, but if the pieces don’t connect into one cohesive story, the report becomes harder to defend.
We see it show up in different ways:
- The scope of work doesn’t fully match the problem being solved
- Adjustments are reasonable individually, but inconsistent across analyses
- The highest and best use conclusion doesn’t carry through to the valuation
- The report reads like separate sections instead of one cohesive story
On the surface, everything may look fine. But under closer review, especially in more complex or adversarial settings, those gaps start to show.
What We’ve Been Working On
A big focus for us this year has been training around how we think through these assignments. The reasoning process that happens before we even start writing the appraisal.
These are a few of the core principles we’ve been reinforcing:
Start with the real problem
We start by clearly defining what question the assignment is actually answering, which is often more specific than just “complete an appraisal.”
Build consistency across the entire report
Land values, sales comps, rent comps, and income assumptions all need to flow together.
Make the approaches talk to each other
The highest and best use analysis, cost, sales comparison and income approaches should support the same conclusion from different angles, reinforcing each other rather than standing alone.
Weave one narrative from beginning to end
In these types of assignments, each piece of the analysis needs to be reasonable on its own and connect to everything else.
That’s the difference between a report that simply checks the boxes and one that will hold up under scrutiny from an opposing attorney, appraiser or reviewer.
Where This Shows up Most Clearly
This approach becomes especially important in complex assignments, which over the past year have included:
- Litigation-related valuation assignments where the analysis needed to withstand detailed third-party review
- Property tax appeal matters involving large retail and mixed-use properties, where consistency across multiple valuation approaches was critical
- Highest and best use analyses for properties where the existing improvements may no longer represent the optimal use
- Distressed or transitional assets where limited comparable data required a higher level of judgment and support
In these types of assignments, it’s not enough for each piece of the analysis to be reasonable on its own. Everything has to connect. Because that’s where credibility is either established or lost.
Why This Matters Right Now
The current market isn’t as forgiving as it was a few years ago.
We’re continuing to see:
- Lower transaction volume in several sectors
- Wider ranges in pricing for similar property type
- Increased scrutiny from buyers, lenders, and reviewers on how conclusions are supported
When markets are more stable, inconsistencies can sometimes go unnoticed. In today’s environment, they tend to stand out, which makes the structure and clarity of the analysis even more important.
Inside Simonson Appraisals
A lot of our internal focus this year has been on continuing to raise the bar in how we approach our work. That includes:
- More structured internal training around complex and litigation-oriented assignments
- Greater consistency in how we apply adjustments and analyze data across reports
- Continued investment in our team so we can improve efficiency without sacrificing quality
The goal is straightforward: deliver work that is not only well-supported, but clearly reasoned from start to finish.
Closing Thought
At a certain level, appraisal work becomes less about mechanics and more about judgment, consistency, and clarity of thought. That’s where we’ve been spending our time, and what continues to drive the quality of the work we deliver.
📞 612-618-3726 | ✉️ mitch@simonsonap.com | 🌐 www.simonsonappraisals.com