Stein Valuation | Appraisal reporting
Appraisal reporting formats
The report option determines how appraisal results are communicated. It does not replace the work needed to develop a credible opinion of value.
For written real property appraisals, USPAP provides two reporting options: an Appraisal Report and a Restricted Appraisal Report. These are content requirements, not prescribed page layouts. A narrative document or a form must still provide the information required for the chosen option.
Appraisal Report
An Appraisal Report provides a summary of the information, analysis, and reasoning supporting the appraiser's opinions and conclusions. Its content must be appropriate for the intended use and give intended users enough information to understand the report properly.
The report identifies the client and other intended users, the intended use, the property and interest appraised, the type and definition of value, and the effective date. It summarizes the scope of work and the relevant analysis. Other intended users may be identified by name or type.
This option is often useful when readers need to follow the reasoning behind the value conclusion, including lending, estate planning, tax reporting, litigation support, and ownership decisions. The assignment's requirements, rather than its label alone, determine the necessary detail.
Restricted Appraisal Report
A Restricted Appraisal Report communicates results more concisely. It may be used when the client is the only intended user or when additional intended users are identified by name. It must clearly restrict use to the client and those named intended users.
It must also conspicuously warn that the report may not contain supporting rationale for all opinions and conclusions. Receiving a copy does not, by itself, make someone an intended user.
This option may fit an internal ownership decision or a portfolio update when the intended users understand the property and the limitations of the reporting. A short report is not permission to omit research or analysis necessary for credible assignment results. Both options remain subject to the applicable development requirements.
Choose the option around the intended use
Before ordering an appraisal, identify who needs to use it and what decision it will support. Consider the users' knowledge, the complexity of the property, and any agency, court, lender, or tax requirements. Report length alone does not establish suitability.
The earlier labels Summary Appraisal Report and Self-Contained Appraisal Report are not the two reporting options in the current real property reporting standard. A client asking for one of those older labels should explain the information and analysis needed.
Naming an agency as an intended user does not establish that the report satisfies that agency's requirements. Tax and litigation assignments need a separate review of the applicable reporting requirements.
See how appraisal analysis is developed and what information is needed for a fee quote.