Commercial Appraisals - Types of Reports
All commercial reports are narratives in format and are prepared in conformance with (1) the lastest edition of the Uniform Standards of Professional Appraisal Practicve (USPAP) of the Appraisal Foundation and (2) Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). During the engagement process between your firm and W. R. McCain & Associates, Inc, each assignment is priced individually based upon such factors as the property use and size, report type, depth of analysis, etc.
All reports are "Complete" assignments whereby all appropriate methods and approaches considered applicable are included. A "Limited" assignment (for instance, the omission of one of the approaches to value) is only performed at the request of the client when the appraisers agree that the omission of that approach will not result in a misleading value conclusion or report. -- The terms Complete and Limited are no longer required by USPAP; however, we are still using as they clearly describe the assignment.
Note: Each financial institution has their own specifications. If a bank is involved, the bank must order the appraisal report.
Self Contained Appraisal Report
This is the most in-depth report. As such, it contains (describes) all of the information significant to the solution of the appraisal problem. The reader of this report should expect to find all significant data reported in comprehensive detail.
Summary Appraisal Report
Presents summary discussion of data, reasoning and analyses that were used in the appraisal process. Some/much of the supporting documentation is retained in the appraisers' files. Depth of discussion is specific to the needs of the client.
Restricted Use Appraisal Report
Although all due diligence is required, this report contains (states) only a brief statement of information significant to the solution of the appraisal problem. Most/all of the supporting data and analysis utilized in the estimate of value has been retained in the appraisers' files. Consequently, the reader may not fully understand the report properly without the additional information in the workfiles of the appraisers. This client is the only intended user.