USPAP 2018-2019 Edition
© The Appraisal Foundation
Comment: In ad valorem taxation the appraiser may be required by rules or law to appraise the property as if
in fee simple, as though unencumbered by existing leases. In such cases, market rent would be used in the
appraisal, ignoring the effect of the individual, actual contract rents.
(d) analyze the effect on value, if any, of the assemblage of the various parcels, divided interests, or
component parts of a property; the value of the whole must not be developed by adding together the
individual values of the various parcels, divided interests, or component parts; and
Comment: When the value of the whole has been established and the appraiser seeks to value a part,
the value of any such part must be tested by reference to appropriate market data and supported by an
appropriate analysis of such data.
(e) when analyzing anticipated public or private improvements, located on or off the site, analyze the effect on
value, if any, of such anticipated improvements to the extent they are reflected in market actions.
STANDARDS RULE 5-7
In reconciling a mass appraisal an appraiser must:
(a) reconcile the quality and quantity of data available and analyzed within the approaches used and the
applicability and relevance of the approaches, methods and techniques used; and
(b) employ recognized mass appraisal testing procedures and techniques to ensure that standards of
accuracy are maintained.
Comment: It is implicit in mass appraisal that, even when properly specified and calibrated mass appraisal
models are used, some individual value conclusions will not meet standards of reasonableness, consistency,
and accuracy. However, appraisers engaged in mass appraisal have a professional responsibility to ensure
that, on an overall basis, models produce value conclusions that meet attainable standards of accuracy. This
responsibility requires appraisers to evaluate the performance of models, using techniques that may include
but are not limited to, goodness-of-fit statistics, and model performance statistics such as appraisal-to-sale ratio
studies, evaluation of hold-out samples, or analysis of residuals.