What is the primary purpose of an appraisal addendum?

The primary purpose of an appraisal addendum is to offer additional details or information that supplements the main appraisal report. This might include explanations of methodologies, adjustments made in the valuation, or updates on conditions that could affect the appraisal results. An addendum allows the appraiser to clarify or elaborate on points that are significant but may not have been fully addressed within the main body of the report.

In practice, the use of an addendum enhances the comprehensiveness of the appraisal by allowing for the inclusion of relevant context that supports the valuation conclusion. This additional documentation can be crucial for stakeholders who rely on the appraisal for decision-making, ensuring they have all applicable information at their disposal. It improves transparency and can potentially preempt questions or concerns about the appraiser's findings.