What is the primary purpose of conducting a narrative appraisal report?

The narrative appraisal report is primarily utilized to support complex valuation conclusions. These reports are typically more detailed and comprehensive than other types of appraisal reports, allowing the appraiser to provide an in-depth analysis of the property being appraised. This includes extensive explanations of the methodologies used, the reasons behind the valuation conclusion, and the particular factors influencing the property's value.

In cases where properties are unique or where the valuation involves intricate considerations—such as zoning issues, environmental factors, or economic conditions—a narrative report equips clients with the detailed reasoning needed to substantiate the appraisal. This level of detail is particularly valuable in litigation, high-value financing, or complex transactions, where a clear understanding of the valuation process is essential.

While other types of reports may serve different purposes, such as offering brief summaries or insights into market trends, the narrative report is intentionally designed to provide a robust framework for understanding complex valuations, which is why this choice is the most accurate representation of its primary purpose.