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USPAP 2018-2019 Edition

© The Appraisal Foundation

41

STANDARD 6

The effective date of the appraisal establishes the context for the value opinion, while the date of the report

indicates whether the perspective of the appraiser on the market and property as of the effective date of the

appraisal was prospective, current, or retrospective.

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(e) state the type and definition of value and cite the source of the definition;

Comment: Stating the type and definition of value also requires any comments needed to clearly indicate to

intended users how the definition is being applied.

65

When reporting an opinion of market value, state whether the opinion of value is:

• In terms of cash or of financing terms equivalent to cash; or

• Based on non-market financing with unusual conditions or incentives.

When an opinion of market value is not in terms of cash or based on financing terms equivalent to cash,

summarize the terms of such financing and explain their contributions to or negative influence on value.

(f) state the properties appraised including the property rights;

Comment: The report documents the sources for location, describing and listing the property. When

applicable, include references to legal descriptions, addresses, parcel identifiers, photos, and building

sketches. In mass appraisal this information is often included in property records. When the property rights to

be appraised are specified in a statute or court ruling, the law must be referenced.

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

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exclusion of the sales comparison

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

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 mass appraisal assistance, the appraiser must describe the

extent of that assistance. The signing appraiser must also state the name(s) of those providing the significant mass

appraisal assistance in the certification, in accordance with Standards Rule 6-3.

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(h) summarize and support the model specification(s) considered, data requirements, and the model(s) chosen;

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

confidence that the process and procedures used conform to accepted methods and result in credible value

conclusions. In the case of mass appraisal for ad valorem taxation, stability and accuracy are important to the

credibility of value opinions. The report must include a summary of the rationale for each model, the calibration

techniques to be used, and the performance measures to be used.

(i) summarize the procedure for collecting, validating, and reporting data;

Comment: The report must summarize the sources of data and the data collection and validation processes.

Reference to detailed data collection manuals or electronic records must be made, as appropriate

,

including

where they may be found for inspection.

(j) summarize calibration methods considered and chosen, including the mathematical form of the final

model(s); summarize how value conclusions were reviewed; and, if necessary, state the availability and

location of individual value conclusions;

64 See Advisory Opinion 34,

Retrospective and Prospective Value Opinions

.

65 See Advisory Opinion 34,

Retrospective and Prospective Value Opinions

.

66 See Advisory Opinion 28,

Scope of Work Decision, Performance, and Disclosure

and Advisory Opinion 29

, An Acceptable Scope of Work.

67 See Advisory Opinion 31,

Assignments Involving More than One Appraiser

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