What Makes an Appraisal “USPAP-Compliant”? A Primer for Clients and Lenders

What USPAP Is

The Uniform Standards of Professional Appraisal Practice (USPAP) are developed and maintained by the Appraisal Standards Board of The Appraisal Foundation and are recognized as the generally accepted standards for appraisal practice in the United States.

Ethics and Competency Requirements

USPAP’s Ethics Rule requires appraisers to act with impartiality, objectivity, and independence, without advocating for a predetermined result. Its Competency Rule requires an appraiser to have the knowledge and experience necessary for a given assignment or to disclose a lack thereof and take the steps necessary to complete the assignment competently.

Scope of Work and Reporting Standards

Standards 1 and 2 govern the development and reporting of real property appraisals, respectively, setting minimum requirements for the data considered, the analysis performed, and the disclosures a report must contain.

Why Compliance Matters

A USPAP-compliant report is built to withstand scrutiny from lenders, courts, taxing authorities, and other intended users. A report that falls short of these standards can undermine the credibility of the value conclusion, regardless of how reasonable that conclusion might otherwise be.

Dunkin Advisors’ Certified General appraisers develop and report every assignment in accordance with USPAP. Contact us with questions about a specific engagement.