General Lender Requirements:

Most lender requested appraisals concern current market value with proposed projects requiring additional analysis of the value at completion and upon stabilization.

Reporting options can vary significantly dependent upon the size of the loan and whether the real estate is to be encumbered as the primary source of repayment or as an abundance of caution.

Generally, loans in excess of $250,000 will require the complete appraisal process, the appraiser completing all appropriate approaches.

Loans of less than $250,000 can entail limited appraisals where perhaps only the single most applicable approach is utilized.  It is important to be aware that limited appraisals are considered to be potentially less accurate, dependent upon the extent of the limitations.         

Report Options

Each written real property appraisal report must be prepared under one of the following three options and prominently state which option is used: Self-Contained Appraisal Report, Summary Appraisal Report, or Restricted Use Appraisal Report.

The Self-Contained Appraisal Report should contain all information significant to the solution of the appraisal problem. “Describe” is the distinguishing term related to the Self-Contained Appraisal Report. The reader of the Self-Contained Appraisal Report should expect to find all significant data reported in comprehensive detail.

The Summary Appraisal Report should contain a summary of all information significant to the solution of the appraisal problem. “Summarize” is the distinguishing term related to the Summary Appraisal Report. The reader of the Summary Appraisal Report should expect to find all significant data reported in tabular or abbreviated narrative formats.

The Restricted Use Appraisal Report should contain a brief statement of information significant to the solution of the appraisal problem. “State” is the distinguishing term related to the Restricted Appraisal Report. The reader of the Restricted Appraisal Report should not expect to find all significant data reported upon which the conclusions are based. The support is retained in the file.