What type of appraisal report is most often used for commercial property?

The Summary Appraisal Report is the most commonly used format for commercial property appraisals:

Summary Appraisal Report (Most Common for Commercial Properties)
This type of report provides a concise version of the appraisal while still including all the essential details necessary for determining a property's value. It includes summaries of the data, analysis, and conclusions rather than the in-depth detail found in a Narrative Appraisal Report.

Key Features:

• Provides enough information to support the valuation without overwhelming detail.
• Includes a summary of the property description, market conditions, and approaches to value (Income, Sales Comparison, and Cost Approaches).
• Ideal for most commercial real estate transactions where a full narrative may not be necessary.

Usage:

• Standard for lending institutions and common in most commercial real estate transactions.
• Sufficient for most buyers, sellers, and lenders who need a reliable valuation without extensive documentation.

Narrative Appraisal Report (Used for Complex or Unique Cases)
The Narrative Appraisal Report is still used but generally reserved for more complex transactions or legal matters where extensive documentation is required, such as litigation, eminent domain, or unique properties with little market data.

In summary, for most standard commercial property transactions, the Summary Appraisal Report is the format typically used, while the Narrative Appraisal Report is reserved for more complex or specialized cases. Thanks for pointing that out!