What is the primary purpose of a narrative appraisal report?

The primary purpose of a narrative appraisal report is to provide an extensive and detailed explanation of the appraisal process and conclusion. This type of report is structured to convey comprehensive information, including the rationale behind the appraiser's conclusions, the methodologies used, and the analyses performed throughout the appraisal process.

Narrative reports are essential for clients who require in-depth understanding and documentation, such as lenders, courts, and real estate professionals. They are typically organized into sections that explore different aspects of the property being appraised, including property characteristics, market conditions, zoning issues, and comparable property analysis, all while adhering to regulatory standards.

The depth and detail provided in narrative reports differentiate them from simpler reports that might simply summarize key information or list data points without the necessary analytical context, making them vital for informed decision-making in various real estate transactions.