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6 Types Of Appraisal Reports
When you order an appraisal, the appraiser would most likely ask you why you need it one to be conducted.
This is not due to the appraiser being a busybody and suspect that you might be up to no good.
It because appraisal reports can have different formats and requirements for different purposes.
And depending on what the client requires, the jobscope might change, resulting different pricing charged by the appraiser.
Complete vs limited-use
If the appraisal report is for your own personal use, you could jolly well request your appraiser to deliver the report in an audio or video file for your own entertainment.
But when you need these reports for some type of official or business use, the USPAP rules that there are two types of appraisals.
- Limited use
On top of that, there are 3 formats for these reports.
- Self contained
This gives it 6 combinations for the types of appraisal reports available.
As the name suggest, complete appraisals contain detailed information and data showing the reader what data was used and what methodology applied to finally arrive as an appraised value.
Complete appraisals are usually essential for mortgages and legal conflicts.
A limited use report lacks the level of comprehensive details contained in a complete appraisal.
Needless to say, these types of reports are usually used internally instead of business or official use.
Types of report formats
Not only can the report format determine the type of usage, it can also affect the appraisal fee.
Sometimes also known as a narrative report, a self contained report is the most elaborate format among the 3.
It contains the most meticulous information and depth on how the estimated market value of a property is determined.
This type of report is often a requirement for lenders to assess mortgage applications.
As opposed to the self-contained report, a summary report just provides the gist of the findings from the appraisal.
However, many lender are known to accept summary reports as well.
This might be due to how credible and trustworthy an appraisal company is in the eyes of the lender.
This is the shortest format and are usually meant for internal use.
They are not accepted as a proper appraisal report when dealing with third parties.
Finally, remember to be frank about the use of the required report when ordering one from an appraiser.
Otherwise, you might end up with an appraisal report that does not serve it’s intended purpose.