There are three main types of appraisal reports:
Summary report
Restricted use report
Self contained report
A restricted use appraisal report contains very little information about the method used to calculate a property value. The purpose of such a report is to simply provide the estimated property value. It is more detailed than a summary report. It is not used by lenders, banks, or government agencies. Rather, it is solely intended for property owners and buyers in order to help them understand the property’s value without the arduous task of combing through an a appraisal, which goes into much detail about how the appraisal’s value was derived.
The advantage of a restricted use report is the fact that it is cheaper to create and less time consuming for the appraiser. While lenders will not accept such a report for financing, it is particularly helpful when trying to gain an understanding of a subject property. The major disadvantage with this type of report is the obscurity in details. While restricted use reports may be beneficial to a buyer or seller, they are not useful for other purposes.
