TYPES AND PURPOSES OF APPRAISAL REPORT

1. SELF CONTAINED REPORT

2. SUMMARY REPORT
3. RESTRICTED USE REPORT

 Self-Contained Report. In this option, the appraiser provides all of the data and
the rationale used in the development of the appraisal. All conclusions and data
sources are fully disclosed and discussed.

 This is the second most common appraisal report within the industry
because it satisfies the needs of lenders and large institutions, but
can sometimes be arduous to read due to the amount of information.
Self-Contained Appraisal Reports can have one, two, or three
approaches to value, depending on the situation of the property and
use of the appraisal.

 Typically, Self-Contained Reports are only used in commercial

valuation settings due to the amount of information presented. This
type of report has more detail and information than both Restricted
Use and Summary appraisal reports.
Advantages
 The advantage of this report is that if you are looking for details, this
has it. A Self-Contained Report will contain a significant amount of
data to which the client can analyze on their own accord.
Disadvantages
 The biggest disadvantages of a Self-Contained appraisal are the
cost and amount of detail. Due to the fact that the appraiser must
spend more time including details, the report takes longer to
develop. As a result, it has a higher cost.
Self-Contained appraisal reports are most commonly only prepared under one
format: Narrative.

The narrative format in writing is a structure good for telling stories and sharing
anecdotes and messages. The narrative format doesn't necessarily need to follow a
strict order or series of events to be effective, but all good narratives or stories should
include five major components.

Two practical tests can determine if a report is self-contained:

  the content of the report fully describes the data, reasoning, and each conclusion
to such a degree that the client does not need to consult other data sources or
inquire how the appraiser reached a conclusion, and

 information sources cited within the report are included in the document, within
reason. Citing a book does not require the inclusion of the book in the
addendum, but market studies or other articles cited in a report should be
included, especially if the appraiser relied upon them to support important
conclusions.

Self-contained reports most often are needed for commercial property lending.

 Summary Report. As the name indicates, the appraiser summarizes the

findings rather than fully describing them. Summary reports are much shorter
than self-contained reports and are accepted by many lenders. Appraisers may
summarize their data and conclusions without explaining the full reasoning
behind them. Summary reports most often are used for simple commercial real
estate transactions.

 Restricted Report. The shortest format, restricted reports state only the

appraiser's conclusions with no explanation on how they were derived. Restricted
reports generally are used internally or when a value must be reported quickly.
Many clients order restricted reports when time is of the essence and then have
them upgraded to summary or self-contained reports in the future.