Professional real estate appraisers perform a useful function in society and offer a variety of services to their clients. They develop opinions of several types of property value and assist in various decisions about real estate. Standards for the appraisal profession are set forth in the Uniform Standards of Professional Appraisal Practice (USPAP) developed by the Appraisal Standards Board of The Appraisal Foundation.* USPAP specifies the procedures to be followed in developing and communicating an appraisal and the ethical rules for appraisal practice. As defined in USPAP, an appraisal is the act or process of developing an opinion of value. The valuation process is a systematic procedure the appraiser follows to answer a client’s question about real property value.
The most common type of appraisal assignment is the development of an opinion of market value. However, because of their specialized training and experience, appraisers can provide a wide range of additional appraisal services — from investment consultation to advice on various business as well as personal financial decisions.
THE INTENDED USE OF AN APPRAISAL
An appraisal may be requested or required for many reasons:
CERTIFICATION
The certification states that the appraiser has personally conducted the appraisal in an unbiased, objective manner in accordance with USPAP. It may follow the final opinion of value or be combined with it. The certification must be signed by the appraiser. Certification is important because it clearly states the role of the appraiser, thereby clarifying that the assignment was performed by an individual who is impartial, objective and unbiased.
All appraisal reports will specify the following items: