For lenders and appraisal coordinators

What a Bank Should Include in a Commercial Appraisal Engagement Request

A complete engagement request does more than name a property and a due date. It gives the institution and the appraiser a shared record of the decision the appraisal must support, who may rely on it, what property interest is being valued, and what work and reporting are expected. That clarity helps the appraiser assess competency and scope before accepting the assignment, while preserving independent professional judgment.

Content ID IV-C11 · Sources reviewed September 14, 2026

1. Identify the institution, property, and transaction

Start with the regulated institution or other client ordering the work, a reliable property address, parcel or legal-description information when available, and the real property interest involved. Also identify the borrower or owner separately from the client; those roles are not automatically the same.

Client institution and primary appraisal contact
Property address, county, parcel identifiers, and legal description when available
Fee simple, leased fee, leasehold, or another interest to be appraised
Borrower, current owner, and proposed buyer when applicable
Loan type, transaction amount, and relevant credit structure

2. State the intended use and intended users

Explain the credit or risk-management decision the appraisal will support and name the parties intended to rely on the report. The Interagency Appraisal and Evaluation Guidelines say an engagement letter should identify intended use and intended users. A borrower, broker, participant, or other party is not an intended user merely because that party receives or discusses the report.

The lending, renewal, modification, workout, participation, or other decision
The institution and any other specifically authorized intended users
Any legal or contractual restrictions on sharing the appraisal

3. Define the value question and relevant dates

State the type of value required, the interest to be valued, and the effective date. If the assignment involves proposed construction, stabilization, a retrospective date, or another special premise, describe the decision need without directing the appraiser to a predetermined result.

Required value premise and real property interest
Current, retrospective, or prospective effective date
Known hypothetical conditions or extraordinary assumptions to be considered
Requested report date and the credit decision date it serves

4. Describe the property and known complexity

Provide enough information for the appraiser to evaluate competency, timing, and an appropriate scope. Early disclosure of unusual facts is useful; it does not replace the appraiser's responsibility to determine the research and analysis needed for credible assignment results.

Property type, current use, occupancy, and proposed use
Construction or renovation status
Multiple parcels, easements, ground leases, atypical ownership, or special-use features
Environmental, access, zoning, casualty, or condition concerns already known to the institution
Any portfolio, participation, agency, or internal-policy requirement that affects the assignment

5. Set access and information expectations

Name the person who can provide safe property access and the people who can answer leasing, operating, construction, or ownership questions. Inventory the records expected to be available and distinguish confirmed facts from items that are still pending.

Site contact, access limits, tenant notice, and safety instructions
Current rent roll and leases
Operating statements, budgets, and capital-improvement history
Survey, plans, legal description, tax records, and zoning information
Purchase agreement, construction budget, plans and specifications, or other transaction documents when relevant

6. Specify the report and delivery requirements

Describe the report format, any institution-specific supplemental requirements, the delivery method, and the review contact. Federal appraisal rules require a written appraisal with enough information and analysis to support the institution's decision, while the depth of work should remain appropriate for the property's risk and complexity.

Required report format and institutional supplements
Named delivery and review contacts
Secure delivery instructions
Questions or corrections should be routed through the institution's appraisal function

7. Protect selection and appraisal independence

The institution should select and engage the appraiser through a function independent of loan production, consistent with its policy and applicable regulation. The request may communicate the transaction facts, decision need, and deadline, but it should not condition the assignment on a target value, loan approval, or other predetermined conclusion.

8. Treat the request as a scope conversation, not an automatic engagement

A quote request is not, by itself, an accepted appraisal engagement. The appraiser still needs to confirm competency, independence, conflicts, capacity, fee, timing, scope, and the final written terms. A clear initial package makes that review faster and leaves fewer material questions for later.

Educational references: Federal Reserve — Interagency Appraisal and Evaluation Guidelines · eCFR — 12 CFR Part 34, Subpart C · OCC — Commercial Real Estate Lending Comptroller's Handbook. This article is not an exhaustive regulatory checklist and does not replace institutional policy, legal advice, primary-regulator guidance, or assignment-specific procedures.

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