Which type of report is typically preferred for residential appraisals?

Form reports are typically preferred for residential appraisals because they provide a standardized, organized format that allows appraisers to efficiently present essential information about the property being evaluated. This type of report includes structured sections that cover key aspects such as property details, market analysis, and valuation approaches, making it easier for lenders, buyers, and other stakeholders to understand the appraisal results.

The use of form reports is especially beneficial in residential real estate transactions because they streamline the appraisal process, saving time for both appraisers and clients. Furthermore, lenders often require a specific form report to meet their internal guidelines, reinforcing the preference for this type of reporting in the residential market.

Other report types, while useful in certain contexts, do not offer the same level of efficiency, consistency, or alignment with industry standards that form reports provide. For instance, narrative reports may provide in-depth analysis but are typically more time-consuming to create and can vary significantly in structure and detail from one appraiser to another. Desktop reports are limited in scope and often aren't used for full assessments that require physical inspections. Letter reports, on the other hand, may lack the detailed information necessary for thorough evaluations in residential settings.