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USPAP 2018-2019 Edition

© The Appraisal Foundation

STANDARD 1: REAL PROPERTY APPRAISAL,

DEVELOPMENT

In developing a real property appraisal, an appraiser must identify the problem to be solved,

determine the scope of work necessary to solve the problem, and correctly complete research

and analyses necessary to produce a credible appraisal.

Comment: STANDARD 1 is directed toward the substantive aspects of developing a credible

appraisal of real property. The requirements set forth in STANDARD 1 follow the appraisal development

process in the order of topics addressed and can be used by appraisers and the users of appraisal services

as a convenient checklist.

STANDARDS RULE 1-1

In developing a real property appraisal, an appraiser must:

(a) be aware of, understand, and correctly employ those recognized methods and techniques that are

necessary to produce a credible appraisal;

Comment: This Standards Rule recognizes that the principle of change continues to affect the manner in

which appraisers perform appraisal services. Changes and developments in the real estate field have a

substantial impact on the appraisal profession. Important changes in the cost and manner of constructing

and marketing commercial, industrial, and residential real estate as well as changes in the legal framework

in which real property rights and interests are created, conveyed, and mortgaged have resulted in

corresponding changes in appraisal theory and practice. Social change has also had an effect on appraisal

theory and practice. To keep abreast of these changes and developments, the appraisal profession is

constantly reviewing and revising appraisal methods and techniques and devising new methods and

techniques to meet new circumstances. For this reason, it is not sufficient for appraisers to simply maintain

the skills and the knowledge they possess when they become appraisers. Each appraiser must continuously

improve his or her skills to remain proficient in real property appraisal.

(b) not commit a substantial error of omission or commission that significantly affects an appraisal; and

Comment: An appraiser must use sufficient care to avoid errors that would significantly affect his or her

opinions and conclusions. Diligence is required to identify and analyze the factors, conditions, data, and other

information that would have a significant effect on the credibility of the assignment results.

(c) not render appraisal services in a careless or negligent manner, such as by making a series of errors that,

although individually might not significantly affect the results of an appraisal, in the aggregate affects the

credibility of those results.

Comment: Perfection is impossible to attain, and competence does not require perfection. However, an

appraiser must not render appraisal services in a careless or negligent manner. This Standards Rule requires

an appraiser to use due diligence and due care.

STANDARDS RULE 1-2

In developing a real property appraisal, an appraiser must:

(a) identify the client and other intended users;

16

(b) identify the intended use of the appraiser’s opinions and conclusions;

17

Comment: An appraiser must not allow the intended use of an assignment or a client’s objectives to cause

the assignment results to be biased.

18

16 See Advisory Opinion 36,

Identification and Disclosure of Client, Intended Use, and Intended Users

.

17 See Advisory Opinion 36,

Identification and Disclosure of Client, Intended Use, and Intended Users.

18 See Advisory Opinion 19,

Unacceptable Assignment Conditions in Real Property Appraisal Assignments.

See also

FAQ 117-

241

FAQ

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