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Appraisal Engagement Letter

An Appraisal Engagement Letter helps appraisers and clients agree on the purpose, scope, fee, and timeline of an appraisal before work begins. Use this free, ready-to-edit template to set clear terms for property, business, or asset valuations. Simply fill in your details, download, and e-sign it online in minutes.

What Is an Appraisal Engagement Letter and Why Is It Important?

An Appraisal Engagement Letter is a written agreement between an appraiser and a client that explains the details of an appraisal job. It usually covers what's being appraised, the purpose of the appraisal, who will use the report, the type of value being estimated, the fee, and the delivery date. Clear terms protect both sides and help the appraiser follow professional standards like USPAP. It also prevents confusion about what the report includes, who can rely on it, and when it will be ready.

Set Clear Expectations Before the Appraisal Begins

Starting an appraisal without written terms can lead to disputes over fees, deadlines, or how the report can be used. A client may expect a full report when only a limited one was agreed upon, or share it with people it wasn't meant for. A ready-made Appraisal Engagement Letter Template already includes all the key sections in a clear, professional layout. You just add the job details, so both you and your client know exactly what to expect from start to finish.

Ideal for Real Estate Appraisers, Business Valuers, and Their Clients

This template is useful for residential and commercial real estate appraisers working with homeowners, buyers, sellers, and lenders. It also helps business valuation experts appraising companies for sales, partnerships, or divorce cases. Personal property appraisers can use it for jewelry, art, antiques, and collectibles. Equipment and machinery appraisers will find it helpful too. Attorneys, accountants, estate planners, and lenders hiring an appraiser can also use it to make sure the scope and terms are clear.

How to Fill Out an Appraisal Engagement Letter Step by Step

Start by adding the appraiser's name, license number, contact details, and the date. Include the client's name and contact details. Describe the property or asset being appraised, including the address or key details. State the intended use, such as a sale, refinance, estate, or tax purpose, and list the intended users. Add the type of value and the effective date. Include the fee, payment terms, and report delivery date. Finally, have both parties sign before the appraisal begins.


How to Use Agreed Templates

Start With the Template

Open the Product Agreement Template in your Agreed workspace and begin with a ready-to-use agreement structure.

Customize Agreement Details

Add or edit product details, responsibilities, pricing, deliverables, timelines, and other terms to match your agreement needs.

Review, Sign & Manage

Send the agreement for review and approval, collect signatures, and manage the completed agreement securely in Agreed.

Frequently Asked Questions.

Everything you need to know about Agreed. Can't find what you're looking for?

It explains why the appraisal is needed, such as for a home sale, mortgage, divorce, estate settlement, or tax filing. The intended use guides how the appraiser completes the report.

No, appraisers can't charge a fee based on reaching a certain value. Professional standards require the fee to be set separately from the appraisal results.

Only the client and intended users named in the engagement letter can rely on it. Others, like a buyer who didn't hire the appraiser, usually can't.

Most home appraisals take about one to two weeks from the inspection to the final report. Business or commercial appraisals often take several weeks, depending on how complex they are.

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