Hettema Saba LLC Different Report Types and Options

5. Different Report Types and Options

I see there are three types of reports I can order. What's the difference?
The final appraisal product delivered to you depends on the type of report specified by our agreement. The parameters of the three types of appraisal reports as defined in USPAP are shown in the table below. The primary difference is in the terms describe, summarize and state. Describe means to provide a comprehensive level of detail, summarize is providing a more concise presentation of the information and state means to provide a minimal presentation of the information.

COMPARISON OF REPORT TYPES*

SELF-CONTAINED	SUMMARY	RESTRICTED
Identify and describe the real estate being appraised	Identify and provide a description of the real estate to be appraised	Identify the real estate being appraised
State the real property interest being appraised	Same as self-contained	Same as self-contained
State the purpose and intended use of the appraisal	Same as self-contained	Same as self-contained
Define the value to be estimated	Same as self-contained	State and reference a definition of the value to be estimated
State the effective date of the appraisal and the date of the report	Same as self-contained	Same as self-contained
State the extent of the process of collecting, confirming, and reporting data	Summarize the extent of the process of collecting, confirming, and reporting data	Describe the extent of the process of collecting, confirming, and reporting data
State all assumptions and limiting conditions that affect the analyses, opinions, and conclusions	Same as self-contained	Same as self-contained
Describe the information considered, the appraisal procedures followed, and the reasoning that supports the analyses, opinions, and conclusions	Summarize the information considered, the appraisal procedures followed, and the reasoning that supports the analyses, opinions, and conclusions	State the appraisal procedures followed; state the value conclusion and reference the existence of specific file information in support of the conclusion
Describe the appraiser's opinion of the highest and best use of the real estate, when such an opinion is necessary and appropriate.	Summarize the appraiser's opinions of the highest and best use of the real estate, when such an opinion is necessary and appropriate.	State the appraiser's opinion of the highest and best use of the real estate, when such an opinion is necessary and appropriate
Explain and support the exclusion of any of the usual valuation approaches	Same as self-contained	State the exclusion of any of the usual valuation approaches
Describe any additional information that may be appropriate to show compliance with, or clearly identify and explain permitted departures from, the specific guidelines of [USPAP] Standard 1	Summarize any additional information that may be appropriate to show compliance with, or clearly identify and explain permitted departures from, the specific guidelines of [USPAP] Standard 1	Include a prominent use restriction that limits reliance on the report to the client and warns that the report cannot be understoood properly without additional information in the work file of the appraiser, and clearly identify and explain any permitted departures from the requirements of Standard 1
Include a signed certification in accordance with Standards Rule 2-3	Same as self-contained	Same as self-contained

*Source: Understanding Limited Appraisals and Appraisal Report Options —The Appraisal Instituie (p. 39).

What type of report do I need?
The appraiser is in the best position to tell you what type of report you need. He/she is required by USPAP to determine the scope of the assignment, the function of the appraisal and use of the report. To do that, he/she will need to understand your needs, so the appraiser is in the best position to recommend one or more of the above choices and to counsel you on what choice(s) would be inappropriate.
Typically, for mortgage financing or legal work you will need at least a Summary Appraisal. Restricted Appraisals are typically suitable for internal valuation (ie. Just want to know what your property is worth).
Self Contained Appraisals are the most expensive and detailed, while Restricted Appraisals are very brief. Please note that the type of report you order does not mean the final value estimate will be different in that format (Self Contained, Summary or Restricted). Value estimates will always be the same. Basically, the difference with report types (3) is the amount of information illustrated/presented within the body as noted in the table above.

Hettema Saba LLC
3307 Clark Rd. Ste 203
Sarasota, FL 34231

Phone: 941.926.0800

Fax: 941.926.2880


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