Adequate

Adequate means sufficient to meet a stated requirement or serve an intended purpose. In appraisal and valuation, the term describes whether the available information, property features or analysis are sufficient to support a credible assignment result.

Appraisers may refer to adequate comparable sales, market data, access, utilities or other physical characteristics. For example, an appraiser must have sufficient information to develop credible assignment results, making the adequacy of the data and analysis an important part of the appraisal process.

For lenders, a finding of inadequacy can affect how an appraisal is reviewed or whether additional information is needed. A property with inadequate utilities or an appraisal supported by insufficient comparable data may require further documentation, additional analysis or, when appropriate, a reconsideration of value. Assessing adequacy helps appraisers and reviewers determine whether the evidence sufficiently supports the conclusions in a valuation report.