====== Appraisal Report ======

An **appraisal report** is a **written document** prepared by a **licensed appraiser** that explains the **opinion of value** of real property and the **methods used** to reach that conclusion.

===== Key Characteristics =====
  * Required for most **lender-financed** transactions
  * Reflects value as of a **specific effective date**
  * Must comply with **[[USPAP]]**
  * Based on verified **market data**

===== Common Contents =====
  * Identification of the property
  * Purpose and intended use
  * Type of value estimated (usually **market value**)
  * Property description and neighborhood analysis
  * Highest and best use
  * Applicable approaches to value
  * Final opinion of value and reconciliation

===== Types of Appraisal Reports =====
  * **Self-Contained Report**
    * Most detailed
    * Explains all data and reasoning

  * **Summary Report**
    * Common for residential lending
    * Summarizes analysis and conclusions

  * **Restricted Use Report**
    * Least detail
    * Intended for a specific user

===== Appraisal vs Inspection =====
  * **Appraisal**
    * Estimates value

  * **Inspection**
    * Evaluates condition

===== Exam Tip =====
  * An appraisal report is an **opinion of value**
  * Lenders rely on the **appraisal report**, not the sales price