Commercial Real Estate Appraisal
There are three major types of commercial real estate appraisal reports. Each type has a different level of detail and a different price. Depending on what you will use the commercial appraisal report for will determine what type of appraisal report you should order.
1. Restricted-Use Appraisal – This report is the least expensive type of commercial appraisal. This type of report contains minimal detail and is created and intended only for specified clients and may not be depended or relied upon by any other party. This report format can be personalized at the client’s request to meet their needs. If you simply need to know what the property is worth and there is no need to share the report with anyone else, consider this report format.
2. Summary Appraisal – These reports are the second to most expensive because they have more detail than Restricted Appraisal Reports but less detail than a Self Contained Report. This type of commercial appraisal gets you to the same end value but does not include all the supporting data and analysis in the report that the appraiser used to get to the end value like in a Self Contained Report. Please see a sample of a Summary Appraisal Report.
If you are using the commercial real estate appraisal to obtain financing for the purchase or refinance of a commercial property than this is most likely the report for you.
Today, the Summary Appraisal report format is by far the most widely used of all the available commercial appraisal report formats. As the report name implies, the summary report ‘summarizes’ all conclusions with a limited amount of explanations. Additionally, the report may contain external material references found in company files, which are normally included in self-contained reports. From a legal standpoint, it can be depended upon by most readers, and for estate related purposes, the summary report format blends itself as the most applicable in this area.