What does support mean? If you say the subject’s zoning is R-1 (or whatever), then the state’s investigator looks for something in the file that supports this statement of fact (remember: per SR2-3, any statement(s) of fact in an appraisal report must be both true and correct, thus the need to have support for them). Then, if you say the subject’s current improvements comply with the zoning, the investigator looks for data and information in the work file to support this statement of fact. For example, if R-1 zoning permits only single-family residences, but the property owners have repurposed the residence into a duplex (likely without the proper building permits, etc.), the investigator looks in the workfile for evidence that you determined this repurposed use is indeed a legal use. If that repurposed residence is not a legal use of the site, yet you appraised it that way anyway (i.e., the current improvements were the property’s highest and best use as improved), then you likely have some serious explaining to do when you meet with the State board.
Is the appraisal and its report credible? In other words, does it answer the question why? If you state in the report the subject’s zoning is R-1, and that the improvements comply with the zoning, then it logically follows that you have the ethical responsibility to summarize in the report why you reached this conclusion, not merely how you reached it. For example, consider the following language specifically concerning zoning:
“Per the City’s zoning map (by reference), the subject has an R-1 zoning code. This code permits single-family residences, but not multi-family uses, mother-in-law apartments, outdoor storage of recreational equipment, and so forth (entire zoning code by reference). Because the subject is a single-family residence, without any of the prohibited uses, it conforms to the R-1 zoning as of the appraisal’s effective date”.
This summary of the zoning, as well as the subject’s conformance to it, should meet the reporting requirements of all but the most challenging assignments.
Shall we review? Your appraisal must comply with all six (6) of the components of Standard 1 (which means your appraisal must be credible). Then, when you report the findings of your appraisal to your client (standard 2), that report must lead the client to the conclusion(s) the market-facts and market-evidence support, but nowhere else. If it does not, that report is misleading. A misleading report also calls into question the credibility of the appraisal supporting it.
Remember, the appraisal must be credible (i.e., worthy of belief) and the report must not mislead the client. Those are some of the qualifications the State looks for when it reviews your appraisal (the workfile) and the appraisal report. When all of these are present, appraisers have far better days than when those are not present.
Remember, as well, the state appraisal board, in the guise of one of its investigators, has the right to go thru your workfile(s) anytime it wants to take that step. Therefore, rather than bitch about it (which will do you no good – look at your application for credentials), expect it, prepare for it, and then you’ll likely sail right thru it.