In appraisal reports, how should terms like "good" or "average" be handled?

In appraisal reports, terms like "good" or "average" should be accompanied by explanations that provide context. This is vital because such terms are often subjective and can carry different meanings for different parties involved in a transaction. By offering a clear explanation, the appraiser ensures that the reader understands precisely what is meant by these terms in the context of the property being assessed.

This practice aligns with the standards set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), which emphasize the importance of clarity and objectivity in appraisal reporting. Providing context not only enhances the credibility of the appraisal but also helps avoid potential misunderstandings or misinterpretations by stakeholders, such as buyers, sellers, and lenders.

Transparent communication about the condition and quality of a property leads to better informed decisions, making it a best practice to clarify subjective terms rather than leaving them open to interpretation.