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USPAP 2018-2019 Edition

© The Appraisal Foundation

22

STANDARD 2

(vii) summarize the scope of work used to develop the appraisal;

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Comment: Because intended users’ reliance on an appraisal may be affected by the scope of work,

the report must enable them to be properly informed and not misled. Sufficient information includes

disclosure of research and analyses performed and might also include disclosure of research and

analyses not performed.

When any portion of the work involves significant real property appraisal assistance, the appraiser must

summarize the extent of that assistance. The name(s) of those providing the significant real property

appraisal assistance must be stated in the certification, in accordance with Standards Rule 2-3.

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(viii) summarize the information analyzed, the appraisal methods and techniques employed, and the

reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison

approach, cost approach, or income approach must be explained;

Comment: An Appraisal Report must include sufficient information to indicate that the appraiser

complied with the requirements of STANDARD 1. The amount of detail required will vary with the

significance of the information to the appraisal.

The appraiser must provide sufficient information to enable the client and intended users to

understand the rationale for the opinions and conclusions, including reconciliation of the data and

approaches, in accordance with Standards Rule 1-6.

When reporting an opinion of market value, a summary of the results of analyzing the subject sales,

agreements of sale, options, and listings in accordance with Standards Rule 1-5 is required.

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If such

information is unobtainable, a statement on the efforts undertaken by the appraiser to obtain the

information is required. If such information is irrelevant, a statement acknowledging the existence of

the information and citing its lack of relevance is required.

(ix) state the use of the real estate existing as of the date of value and the use of the real estate

reflected in the appraisal;

(x)

when an opinion of highest and best use was developed by the appraiser, summarize the support

and rationale for that opinion;

(xi) clearly and conspicuously:

state all extraordinary assumptions and hypothetical conditions; and

state that their use might have affected the assignment results; and

(xii) include a signed certification in accordance with Standards Rule 2-3.

(b) The content of a Restricted Appraisal Report must be consistent with the intended use of the appraisal

and, at a minimum:

(i)

state the identity of the client, unless the client has specifically requested otherwise;

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and state

a prominent use restriction that limits use of the report to the client and warns that the rationale

for how the appraiser arrived at the opinions and conclusions set forth in the report may not be

understood properly without additional information in the appraiser’s workfile;

Comment: An appraiser must use care when identifying the client to avoid violations of the

Confidentiality section of the ETHICS RULE. If a client requests that the client’s identity be withheld

from the report, the appraiser may comply with this request. In these instances, the appraiser must

34 See Advisory Opinion 28,

Scope of Work Decision, Performance, and Disclosure

, and Advisory Opinion 29,

An Acceptable Scope of Work

.

35 See Advisory Opinion 31,

Assignments Involving More than One Appraiser

.

36 See Advisory Opinion 1,

Sales History

.

37 See Advisory Opinion 36,

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

.

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