What must an appraiser typically include in an appraisal report regarding the subject property's prior transfer?

An appraiser is expected to include an analysis of the prior transfer in an appraisal report to provide context and clarity regarding the property's market history. This analysis helps establish a trend of value and aids in understanding how the property has appreciated or depreciated over time. It also informs the appraiser's judgment about the current market conditions and contributes to the overall credibility and accuracy of the appraisal.

This detailed analysis does not merely involve a mention of the transaction; instead, it requires a thorough examination of various factors, such as the terms of the sale, any conditions affecting the sale, and how that transaction relates to other comparable properties. By including this analysis, appraisers align their work with USPAP guidelines, which emphasize the necessity of presenting comprehensive, well-supported opinions of value.

While mentioning the transaction or providing a visual diagram might serve as supplementary information, they do not convey the necessary depth of analysis that would be expected to justify the appraiser's conclusions regarding the property's value. Similarly, detailing the purchase price alone does not encapsulate the entirety of what transpired in that transaction, nor does it account for essential contextual factors that could impact value.