A summary evaluation report summarizes the data and analysis used in the task. A restricted-use evaluation report simply states the conclusions of the evaluation; this type of report can only be provided when the customer is the sole user of the report. Both types of appraisals are for full and limited use. These terms apply to the development of the report and to the scope of the valuation assignment.
As independent third parties, appraisers are often the only party to a transaction that has no personal interest in the outcome. The appraisal community and the Appraisal Foundation have addressed this topic in depth, and now an appraisal is considered equivalent to an appraisal. A good solution is a limited-use evaluation in a restricted report format that provides information quickly and legally. Appraisers can act as consultants and provide raw data to customers, who then determine their own value; however, data vendor licensing agreements often prohibit this.
Courts, tax authorities, lenders, business owners, accountants and other users of appraisal services accept valuation reports on a daily basis. Many appraisers have long stated that summary evaluation reports and independent evaluation reports contained significant overlap, and they have had a hard time distinguishing between the two. The USPAP does not allow anyone other than the client or someone who knows the property intimately to use a restricted report, so a summary or a separate report should be prepared if other parties want to see the valuation. This would be a complete evaluation because the applicable approaches were used, although the cost approach was excluded.
While the restricted evaluation report establishes the findings, the evaluation report, on the other hand, summarizes the findings and purposes of the research. A restricted valuation report is the least common type of property valuation report because it contains minimal content and the intended user is only the customer and not other third parties. Appraisers can use data sources as part of their evaluations and, therefore, will not violate data subscription agreements. Objectivity requirements Appraisers must maintain a third-party position in a transaction and no appraiser can accept a task in which a bias can be interpreted.
For formal reports, the USPAP states that appraisers can issue two types of appraisals and three types of reports for a total of six possible combinations. While it may seem unusual for a customer to pay for a report that does not yield a favorable outcome, appraisers who are governed by appraisal licensing laws must remain objective. If it is determined that the customer's needs and the intended use of the report require a higher level of information to be provided, the format of the evaluation report should be followed.
