What is a Restricted Use Appraisal Report?

Short Answer

Note:This report type has changed as of 2014. Below describes the former Restricted Use report. Follow this link for the new, Restricted Appraisal Report.

A Restricted Use Appraisal Report contains minimal detail and is intended to be relied upon by the client only, not any other party.

Detailed Answer

A Restricted Use Appraisal presents the most minimal level of detail out of all the report types. This is the least common appraisal report type because it does not satisfy the needs of most lenders and intended uses.

A Restricted Use report has less detail than both a Summary Report. and Self-Contained Report .

Advantages

The advantage of this report is its cost; appraisal prices are determined primarily be the amount of time required to

produce the report, and this report type involves the least amount of time. Another potential benefit of this report type is its length- commercial appraisal reports can be quite large, sometimes presenting more information than what the client wants to take in.

Disadvantages

The biggest disadvantages of this report are the level of detail and the fact that it cannot be relied on by any other party besides the client. For these reasons, Restricted Use appraisals remain the least common out of all commercial report types.

Restricted-Use Appraisal Report Formats

Restricted-Use appraisal reports can be completed in two formats:Narrative or Form. The main difference between the two formats, is the level of detail presented.

Related Topics

Refer to our Value Vault  resource section for additional appraisal definitions and appraisal related topics.

Source: www.appraisalcolorado.com

Category: Bank

Similar articles: