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USPAP 2018-2019 Edition

© The Appraisal Foundation

51

STANDARD 8

(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;

83

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

complied with the requirements of STANDARD 7. The amount of detail required will vary with the

significance of the information to the appraisal and with the significance of a particular object or group

of objects to the overall assignment results.

When the appraiser has developed an analysis of agreements of sale, validated offers or third-party

offers to sell, options, listings or prior sales of the subject property in accordance with Standards Rule 7-5,

the appraiser must report a summary of the results of the analysis. If such information was 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.

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

the rationale for the opinion and conclusions, including reconciliation of the data and approaches, in

accordance with Standards Rule 7-6.

(ix) state, as appropriate to the class of personal property involved, the use of the property existing as

of the date of value and the use of the property reflected in the appraisal;

Comment: In the context of personal property, value can be a function of the current and alternative

use of the subject property, the choice of the appropriate market or market level for the type of item,

the type and definition of value, and intended use of the report.

(x)

when an opinion of the appropriate market or market level 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 8-3.

(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;

84

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

document the identity of the client in the workfile and must state in the report that the identity of the

client has been withheld at the client’s request.

The Restricted Appraisal Report is for client use only. Before entering into an agreement, the appraiser

should establish with the client the situations where this type of report is to be used and should ensure

that the client understands the restricted utility of the Restricted Appraisal Report.

83 See Advisory Opinion 2,

Inspection of Subject Property

.

84 See Advisory Opinion 36,

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

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