Godfrey Appraisal Services is able to prepare a wide variety of appraisals to meet client needs. For this reason it is important to distinguish between appraisal development and appraisal reporting.
Development of an appraisal is governed by observance of the “Scope Of Work” rule meaning that the appraiser has the ultimate responsibility of determining the steps necessary to develop a credible appraisal conclusion that addresses the client’s needs. The terms “complete” and “limited” previously used to refer to types of appraisals no longer have official standing under the Uniform Standards of Professional Appraisal Practice, but are still sometimes used to convey the thoroughness of the appraisal development process, with the former generally indicating all applicable approaches to value would be used, and the latter indicating only the most applicable approach to value would be used.
Reporting of an
appraisal may be in one of three report formats; a Self-Contained, Summary or
Restricted report. The type of report selected does not influence the appraisal
development process; a Complete or a Limited appraisal may be reported in any of
A Self-Contained report includes discussions of all
pertinent influences on the valuation process. This is normally characterized by
a complete discussion of the city, the subject neighborhood’s composition,
characteristics and trends, a thorough description of the subject and its
highest and best use, detailed presentations, discussions and analyses of market
data, and a discussion of the reconciliation process and final conclusion. The
Self-Contained report is a thorough report containing all pertinent supporting
A Summary report includes brief discussions or statements
on the pertinent influences in the valuation process. This typically includes a
synopsis of city economics, a brief neighborhood discussion, a brief description
of the subject and its highest and best use, charted presentations of market
data and short summaries of analyses and conclusions, and a simple summary of
the final value conclusion. A Summary report is an abbreviated report containing
limited documentation. Summary reports are typically selected to reduce the cost
of an appraisal, or by clients who are very familiar with a given market and
A Restricted report is an extremely brief report that includes little more than a simple identification of the subject property, a statement of the approaches utilized, and the appraiser’s conclusion. This type of report has very restricted utility. Clients should not expect to completely understand the report because of the lack of discussion/documentation, and the report cannot be presented to a third party. Restricted reports have limited utility, and are rarely acceptable to lenders.