There are three format options available for the written appraisal. These include:
- Appraisal Report
- Restricted Appraisal
- Form Report
It should be noted that for each of the three types of report format the appraiser conducts the same level of research, verification of pertinent information, and analysis. The primary differences in the reporting options are in the level detail in each of the written report formats.
The Appraisal Report is the highest level of reporting detail. In the Appraisal Report the collection of data and analysis used in the appraisal process are explained, addressing each item in the depth and detail as required by its significance. Specific analyses are reported for the subject property including a market analysis for the specific property type, a description of the subject site, the building improvements and their current condition. An Ad Valorem tax analysis and a Highest and Best Use analysis for the subject property is conducted. A complete explanation of the appraisal methods utilized, and the valuation analysis of the property by each of the methods used is explained in a step-by-step process. The Appraisal Report typically includes a variety of maps, photographs, graphics specific to the subject property and the comparables used in the analysis. The Appraisal Report format is typically requested for financial underwriting purposes, litigation and for investment analysis.
In a Restricted Appraisal report the conclusions of the appraisal are stated, but the data and analysis used in the appraisal to develop those conclusions do not need to be included in the report when the appraiser and client have agreed that a Restricted Use Appraisal is appropriate for the assignment. The Restricted Appraisal makes the assumption that the client is already familiar with the property and surrounding area, and these items do not need to be elaborated in detail, but are summarized in the report. A Restricted Use Appraisal is typically not accepted for financial underwriting or litigation purposes. It is most appropriate for when an opinion of value is needed without the need for detailed explanation.
A Form Appraisal report is delivered in a standardized format of a few pages. It briefly summarizes the pertinent information of the property appraised, the comparable sales and/or leases, with an opinion of value conclusion. The Form report is typically requested to streamline the client’s appraisal review process.