what is u.s.p.a.p.?
by Matthew Roberts, Certified General Real Estate Appraiser
No matter your profession, your work and conduct is likely subject to compliance with a myriad of regulations. For appraisers, those regulations are primarily rolled into one set of standards called USPAP. You’ve probably heard about it. You’ve probably dealt with an appraiser who made a big deal about it, and for good reason. It is an acronym for the Uniform Standards of Professional Appraisal Practice.
The Appraisal Standards Board (ASB) of the Appraisal Foundation, a non-government entity, was charged by Congress to establish and maintain standards for appraisers, and USPAP was the result. It is basically a form of quality control for the profession. Their goal is the development of high quality standards, based on principle, that could be used in cases where existing appraiser standards were not already required or did not apply. The Board believed that such standards should establish a high level of professional practice, ensure public trust, and enable users and the public to better understand credible valuation standards. For appraisers, compliance is mandatory, whether appraising personal property, real estate, business value, for uses such as estate tax purposes, charitable contributions, or federally regulated uses (including lending).
USPAP contains rules for both the development of an appraisal and the communication of the value opinion to the client. The rules are primarily meant to guide the appraiser to be impartial and objective. The document also provides definitions of terms one may encounter when engaging an appraiser for service, such as: client, intended use, scope of work, and report types.
These standards apply to appraisals and appraisal reviews as well. Every appraisal we perform is in compliance with USPAP. We have also provided appraisal review services for clients to determine whether or not the report in question was in compliance with applicable development standards.
If you or your business decisions rely on frequent appraisal services, it may be beneficial to have a basic understanding of the requirements appraisers are subject to and the profession itself. If you have a particular question about USPAP, give us a call: we would be happy to help. If you are in need of a complete understanding, the current official USPAP document can be found at the Appraisal Foundation’s website.
Spurgeon Appraisals regularly appraises a variety of property types. We have experience appraising farms, residences, and commercial properties. We pride ourselves on providing excellent customer service and quality appraisals. Contact our team to see how we can meet your appraisal needs and exceed your service expectations.
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