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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 (1,2):

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 appraisal.
8. Describe/Summarize/State the scope of work used for the assignment.
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 conclusions.
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 property
15. Disclose in report's certification any services on the subject property performed by the appraiser within the three prior years.
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 they apply
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 clients
6. State any disclaimers or terms of use associated with the assignment which limit the appraiser's liability or restricts the method in which the appraisal report can be used or reproduced.
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 codes
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.

 

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    Uniform Standards of Professional Appraisal Practice


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