A narrative appraisal report is the most detailed of all the different types of appraisal methods. For this reason, when there are appraisal disputes regarding the derived value of a property, borrowers, lenders, and appraisers may opt to use a narrative appraisal report.
What makes a narrative appraisal report unique is its factual reasoning for deriving at a value such as comparing the subject property to neighboring proprieties, using the square footage, age, and features to determine a very specific figure. Furthermore, a narrative report contains evidence behind how a value is determined. Evidence included in the report are data, opinions of the appraiser, descriptions of a property’s characteristics, an introduction and summary of facts.
Conducting the most detailed appraisal comes with a cost. Because using a narrative report takes more time viewing a property and detailing it in an appraisal report, many lenders may opt to use another type of appraisal.