Appraisal Reports
Key Term(s):
Report — any communication, written or oral, of an appraisal, review, or consulting service that is transmitted to the client upon completion of an assignment.
Complete appraisal — the act or process of estimating value or an estimate of value performed without invoking the Departure Provision.
Limited appraisal — the act or process of estimating value or an estimate of value performed under and resulting from invoking the Departure Provision.
Every appraisal report is prepared to answer a particular question and provide specific information needed by the intended user. The length, type and content of appraisal reports are dictated by the intended user, regulatory requirements, the courts, the type of property being appraised, and the nature of the problem.
To ensure the quality of appraisal reports, professional appraisal organizations have set minimum standards for the facts, descriptions, and statements of work and purpose to be included in all types of appraisal reports. The Uniform Standards of Professional Appraisal Practice (USPAP) provides for two types of appraisals: "complete appraisals" and "limited appraisals." The distinction between complete and limited appraisals depends on the amount of work performed in the collection and analysis of data.
Appraisal reports that communicate either complete or limited appraisals may be presented in three formats: self-contained reports, summary reports, and restricted reports.
Self Contained - A self-contained appraisal report fully describes the data and analyses used in the assignment. All appropriate information is contained within the report and not referenced to the appraiser's files.
Summary Appraisal - A summary appraisal report summarizes the data and analyses used in the assignment.
Restricted Appraisal - A restricted appraisal report simply states the conclusions of the appraisal.