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TYPES OF APPRAISALS
The type of appraisal report and scope of work required by the appraiser in order to meet specific requirements and/or guidelines now in place by various regulatory agencies will vary based upon such factors as the intended use of the report, the intended user, property type, ownership interests to be appraised, complexity of the property, etc. As defined by the Uniform Standards of Professional Appraisal Practice (USPAP), there are essentially three fundamental types of appraisal report products that are now commonly available. These include the:
- Self-Contained Appraisal Report;
- Summary Appraisal Report; and
- Restricted Use Report.
Subsequent to July 1, 2006 revisions of the USPAP, the Departure Provision was discontinued. Therefore the use of "Complete" or a "Limited" appraisal assignments has been eliminated. The appraiser now makes reference to the "Scope of Work Rule" in the preparation of compliant appraisal reports. USPAP defines "Scope of Work" as the type and extent of research and analysis in an assignment but excludes reporting criteria.
Please note that even a verbal opinion of value by an licensed appraiser (i.e., over the phone to a lender) pertaining to an estimate of market value can be construed as an "appraisal" according to USPAP. It is therefore imperative that users of appraisal services understand this, and refrain from seeking "preliminary" opinions of value from appraisers who have not seen the subject property nor inspected the comparables or developed the proper work file and supporting documentation required under USPAP.
We understand that most of the general public is at somewhat of a disadvantage when it comes to ordering appraisal services from state certified/licensed appraisers due to the various product types now specified within USPAP. Contact us regarding what type appraisal report would be most appropriate for your specific valuation need or application. Additional information can also be obtained directly from The Appraisal Foundation web site at www.appraisalfoundation.org.
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