What Is USPAP? The Uniform Standards of Professional Appraisal Practice Explained
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.
Who Created USPAP?
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.
Where USPAP Comes From
Quality Control for Appraisers
Standards built to ensure public trust and a high level of professional practice.
Congress
Charged the board to set and maintain standards for appraisers.
The Appraisal Foundation
A non-government entity.
Appraisal Standards Board
The board within the Foundation that establishes and maintains the standards.
USPAP
The standards every appraiser must follow.
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
When Is USPAP Compliance Required?
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).
Mandatory Compliance
Where USPAP Applies
For appraisers, compliance is mandatory across property types and uses.
What’s Appraised
- Real estate
- Personal property
- Business value
For Uses Like
- Estate tax purposes
- Charitable contributions
- Federally regulated uses, including lending
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
What Does USPAP Cover?
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.
Inside the Standards
What USPAP Covers
Rules meant to guide the appraiser to be impartial and objective.
Developing the Appraisal
Rules for how the appraisal is developed.
Communicating the Value
Rules for reporting the value opinion to the client.
Key Definitions
Client, intended use, scope of work and report types.
Appraisal Reviews
The standards apply to reviews of other appraisals, too.
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
USPAP and Appraisal Reviews
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
Appraisals for Every Property Type
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.
