The substance of an appraisal report is dictated by the “scope of work” agreed upon between the appraiser and client.
In our experience, the great majority of clients prefer a narrative report. A narrative report is typically a multi-page document providing an overview of the property being appraised. Depending on the property type, a cost analysis, an income analysis or a direct comparison analysis may be developed. Most frequently, all three types of analyses are not utilized; only those that the market considers pertinent are considered.
The alternative to a full narrative report is referred to as a restricted report. The Federal Government made up that name and requires that it be used. A restricted report is effectively not much more than a report in letter form that states the value and that supporting documentation is retained in our files.