An update of an Appraisal Report would be an Appraisal Report. An update of a Restricted Appraisal Report would be a Restricted Appraisal Report. Unless otherwise denoted.
With all due respect, I disagree. An Update is an appraisal. It is a "stand alone" product that must meet all the requirements of an appraisal defined in Standards 1 and 2. The only latitude you have is in how meet those Standards. To comply with the standards, you can (1) provide everything necessary, (2) provide the information necessary by including a copy of the prior report (incorporation by attachment) or (3) refer your client to the prior report (incorporation by reference). BTW - there are 7 elements that may not be incorporated by attachment or reference and must be stated in the Update report: subject property, client and any other intended users, intended use, appraiser, effective date of value or assignment results, date of report interest appraised (AO-3). In addition to these, since an Update is an appraisal, you must include a new signed and dated certification.
To answer the question whether an Update is an Appraisal Report or a Restricted Appraisal Report, you have to consider what makes these two report different. Per Standard 2 "The essential difference between these two options is the content and level of information provided." So if you summarize your new analysis, its an Appraisal Report, if you only state the results or conclusions, its Restricted Appraisal Report. It is possible to update an Appraisal Report with a Restricted Appraisal Report and visa versa.
Saying Update is like saying Appraisal, they can be reported in form or narrative format. If we are considering the Update section of the Fannie Mae 1004D, note that this section is headed "Summary Appraisal Report Update." This means, if your are using this form, you must summarize how you arrived at your new opinions and conclusions (support for your prior opinions and conclusion will provided by incorporation, either by attachment or reference). If you doubt that you are required to summarize your results, read the #4 certification on the form. I don't think there's really enough space on this form to summarize the process, even if its just to say 'no decline'. Generally, there needs to be some addendum or additional information. The form itself doesn't mandate what data is to be used to support the new conclusions. That can be consideration of new comparable data or an analysis of market conditions. I've even seen some appraisers support their conclusions by including a new 1004MC.
The bottom line is that an Update is new appraisal. It needs a new certification and the requires the necessary disclosures regarding prior services. If it's reported on the 1004D form, it cannot be a Restricted Appraisal Report and, at a minimum, requires a brief summary supporting the reported conclusions.
