Which Report Type Should You Request?
Clarifying the Appraisal Report Type: Under the 2016-2017 USPAP regulations, there are two defined types of appraisal reports: Appraisals and Restricted Report. Each report type has different reporting requirements which must be included for the report to be clearly understood and compliant with USPAP regulations.
The appraisal work file provides the source for understanding any information which may be absent in the appraisal or restricted use report. Each report type can provide a value conclusion. The type of report often determines the cost the client pays and limits the amount of information presented.
A Review Report can analyze either an appraisal or another review report. The review identifies how well the information which was included was defined and supported by the final value conclusion(s).
A review examines the quality of the data used in either report to determine its reasonableness, relevance, adequacy, accuracy and completeness as it relates to the property interests valued. The review can develop reasons why or why not the appraised value obtained for the property appraised is reasonable or not. It can also provide an alternate value opinion if requested by the client.
Both the Appraisal and Review reports can be used to determine the reliability of the value conclusion obtained in an appraisal. Each has a specific need and use as required by the user of these reports.