Uniform Standard of Professional Appraisal Practice (USPAP)
Standard 8 dictates the minimum requirements for appraisal
reports depending upon the report option (self-contained,
summary, or restricted) required for the assignment. The
appraisal report contains three major sections: appraisal-specific documentation,
item-specific documentation (valuations and support for the
conclusions), and supporting documentation.
The principle difference between the three report options
(self-contained, summary, or restricted) is their level of
documentation and detail. In the Self-Contained appraisal
option, certain information must be "described" in detail, in
Summary appraisal option, information is "Summarized", and in
restricted option, information is "stated".
The following elements are required in all appraisal reports
1. State prominently the report option be used.
2. State the identify of client and any known intended users by
name or type
3. State the intended use of the appraisal.
4. Describe/Summarize/State information sufficiently to identify
the item being appraised commenting on its physical properties,
condition, and value characteristics.
5. State ownership interest being appraised
6. State the type of value being sought and its definition and
markets examined and sources noted
7. State the date of report as well as effective date of the
8. Describe/Summarize/State the scope of work used for the
9. Describe/Summarize/State the extent of any significant
professional appraisal assistance provided by another appraiser
or test results, reports, findings, etc. of others.
10. Describe/Summarize/State information analyzed including
appraisal methods and techniques utilized that supports the
analyses, opinions, and conclusions, including markets chosen to
explore, comparable used as a basis for the appraiser's value
11. State, as appropriate to the class of personal property
involved, use of the property in the appraisal, when an opinion
of appropriate market or market level was developed by the
appraisers, describe/summarize/state the support and rationale
for that opinion
12. State value opinions and conclusions reached
13. Disclose any limiting conditions, clearly and conspicuously
state any extraordinary assumptions encountered and that their
use might have affected assignments results.
14. Disclose in the report's certification any current or
prospective interest regarding parties involved or the subject
15. Disclose in report's certification any services on the
subject property performed by the appraiser within the three
16. Include a signed USPAP certification
17. Self-Contained option will require an additional declaration
Optional content beneficial improving the report's clarity
for clients and intended users (2):
1. Location of property being appraised, name of responsible
parties present during time of inspection, and name of person or
entity to be owner of the property
2. Include a statement of confidentiality
3. Include any insurance claim numbers, policy report numbers if
4. Define any grading scale term or condition code that might
have been used in description of the item
5. Include glossary of words not frequently encountered by
assignment which limit the appraiser's liability or restricts
the method in which the appraisal report can be used or
7. Include relevant statements to better describe scope of work
8. If applicable, include a statement that the report is in
compliance with federal and/or state statues, regulations, and
9. Attach any relevant addenda and exhibits: photographs,
letters of authorization, diagrams or sketches, glossary of
terms, bibliography of references and research sources
Who has right to utilize and act upon the appraisal report?
The appraisal report is prepared only for the client and any
identified intended users. Any other party obtaining a copy of
the appraisal report does not become an intended user.
1. Standard 8 USPAP
2. Chapter 11, Appraising Personal Property Principles &
Methodology - 4th Edition, David Mahoney Jr.