What is the difference between appraisal report and a restricted appraisal report? Aren't they both appraisal reports? USPAP outlines the differences and requirements for appraisal reports and restricted appraisal reports in Standard 8: Personal Property Appraisal Reporting. They are both forms of appraisal reports but they have different scopes and characteristics.
The Appraisal Foundation revised the definition of a restricted appraisal report in the 2020-2021 version of USPAP. The 2024 version of USPAP is now the current version. This is an important distinction from how restricted appraisal reports had previously been defined, which in previous versions of Standards Rule 8-2 of USPAP had stated that "Each written personal property appraisal report must be prepared under one of the following options and prominently state which option is used: Appraisal Report or Restricted Appraisal Report" and the subsequent comment reads in part:
"Comment: When the intended users include parties other than the client, an Appraisal Report must be provided. When the intended users do not include parties other than the client, a Restricted Appraisal Report may be provided.
The essential difference between these two options is in the content and level of information provided. The appropriate reporting option and the level of information necessary in the report are dependent on the intended use and intended users."
Under the revisions in the 2020-2021 version of USPAP, restricted appraisal reports can now have intended users beyond the client, provided these additional intended users are identified by name. The updated language in the 2020-2021 version of USPAP reads “the content of a Restricted Appraisal Report must be appropriate for the intended use of the appraisal, and at a minimum.... state the identity of any other intended user(s) by name. Comment: A Restricted Appraisal Report may be provided when the client is the only intended user; or, when additional intended users are identified by name"
Also, Restricted Appraisal Reports generally state findings, where Appraisal Reports generally summarize findings and the research process. Appraisal Reports are much more detailed in scope of work and documentation of research. Depending on your intended use, either an Appraisal Report or a Restricted Appraisal Report may be more appropriate for your needs.
