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44

USPAP 2018-2019 Edition

© The Appraisal Foundation

STANDARD 7: PERSONAL PROPERTY APPRAISAL,

DEVELOPMENT

In developing a personal 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 7 is directed toward the substantive aspects of developing a credible

appraisal of personal property. The requirements set forth in STANDARD 7 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 7-1

In developing a personal 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 change continues to affect the manner in which appraisers

perform appraisal services. Changes and developments in personal property practice have a substantial

impact on the appraisal profession. Important changes in the cost and manner of acquiring, producing,

and marketing personal property and changes in the legal framework in which appraisers perform their

assignments result in the need for corresponding changes in personal property appraisal theory and

practice. Social change has also had an effect on appraisal theory and practice. The appraisal profession

responds to changing circumstances with revised and new appraisal methods and techniques. Therefore,

it is not sufficient for appraisers to maintain the skills and the knowledge they possess when they become

appraisers. Each appraiser must improve and update his or her skills and knowledge to remain proficient in

the appraisal of personal property.

(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 affect 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 care.

STANDARDS RULE 7-2

In developing a personal property appraisal, an appraiser must:

(a) identify the client and other intended users;

70

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

71

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.

70 See Advisory Opinion 36,

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

.

71 See Advisory Opinion 36,

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

See also

FAQ 117-

241

FAQ

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