Which type of appraisal report must be prepared according to USPAP standards?

The Appraisal Report and Restricted Use Appraisal Report are specifically recognized under USPAP as the two types of reports that must be prepared in accordance with its standards. These reports provide necessary information to clients and intended users while ensuring compliance with ethical and procedural guidelines as established by USPAP.

The Appraisal Report is designed to communicate findings to a broader audience and includes more detailed information, allowing users who may not have specialized knowledge in appraisal to understand the analysis and conclusion. On the other hand, the Restricted Use Appraisal Report is tailored for a specific client or purpose, providing a more concise format that might include less detail while still adhering to essential USPAP requirements.

Understanding the distinction between these report types is important because it emphasizes the accountability and transparency that USPAP intends for appraisers to maintain. Compliance with the standards in these reports ensures that clients receive credible and reliable appraisal services. Points of focus within USPAP address ethical considerations, competency of the appraiser, and proper reporting, all of which are crucial for both types of reports mentioned.