Restricted Appraisal Report or Appraisal Report? What do I need?
As appraisers, we are permitted by USPAP to write two different types of reports: Restricted Appraisal Report or Appraisal Report.
The method we are supposed to use when valuing a property is in two stages: Development and Reporting.
Development means that we do all the research necessary to determine a value for the property. For instance, if I’m appraising an office, I’ll pull land sales to determine what the land is worth, office sales to find out what the land and building are worth and leases to determine how much the office can generate in rent. Then, I work to complete the “math” in order to opine a value.
Reporting is when I write the report, based on all my research and findings based on what the client needs.
So, for any bank or lender, they 99% of the time want the more detailed report, which is the Appraisal Report. However, if you are a property owner, potential buyer or potential tenant, and “just need the value”, then a Restricted Report is typically the best option. Most of the time, since I have to spend less time reporting, I will typically charge a lower fee for the Restricted Appraisal Report.
If you want to discuss your property, and determine which type of report is best for your situation, give us a call.