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.

• Required for most lender-financed transactions
• Reflects value as of a specific effective date
• Must comply with USPAP
• Based on verified market data

• 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

• 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
  • Estimates value

• Inspection
  • Evaluates condition

• An appraisal report is an opinion of value
• Lenders rely on the appraisal report, not the sales price