The following are excerpts with some related commentary from the appraisal of an apartment complex, which used a form rather than a narrative format. Exhibit 6.1, the first portion of the form, shows the entries for expenses, followed by the income approach information.
Annual Expense Analysis
Note that the appraiser has made some notes explaining why the forecast may differ from the actual expenses. Here the forecast is about $11,000 lower than the actual expenses. The explanations for the reason that the forecast is lower are important. It appears that the appraiser has adequately explained ...