Opinions of Value

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USPAP

2016-17 Edition of USPAP to Include Revisions

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Approximately two years ago, the Appraisal Standards Board of The Appraisal Foundation began the revision process for the Uniform Standards of Professional Appraisal Practice. The process

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included the preparation and release of four exposure drafts, numerous public meetings and the review of extensive comments from interested parties.

The Appraisal Institute submitted comments on each exposure draft and attended all of the ASB’s public meetings. On Feb. 6, 2015, the ASB concluded the USPAP revision process with the adoption of revisions to USPAP that the ASB does not anticipate will significantly change the way that appraisers practice. The revisions that will become effective Jan. 1, 2016 include (revisions indicated in italics):

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What Appraisers Need to Know About Valuation for Tax Issues

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In the organization’s latest video, the Appraisal Institute invited Eric Garfield, MAI, and Terry Dunkin, MAI, SRA,SRPA, to talk about what opportunities exist for appraisers in IRS and other tax-related valuations; challenges appraisers face when working with the IRS; and some misconceptions appraisers have about contracting valuation assignments with the IRS.

AI: What opportunities exist for appraisers in IRS and other tax-related valuations?

EG: There are plenty of opportunities for appraisers that involve the Internal Revenue Service and tax-related issues.

Some examples of these assignments include:IRS_Valuation_Issues

The Increasing Importance of Appraisal Reviews

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Since the bubble burst, appraisals have been under what many would call unfair scrutiny. Appraisers for years have reminded anyone who would listen that they reflect what’s happening in the market; nevertheless, economic uncertainty and a fluctuating real estate market leave more room for concern.

realtor workThough always an important valuation function, review appraisals in the current climate have become even more prominent within the profession and play a vital role in risk management and mitigation.

The Uniform Standards of Professional Appraisal Practice defines an appraisal reviews as “the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal, appraisal review, or appraisal consulting assignment.”

In their July 2007 research report, “Appraisal Reviews and Their Importance,” James R. MacCrate, MAI, and Noreen Whysel explain that a number of things could cause issues in an appraisal report, often requiring an appraisal review. These include the following: [Read more…] about The Increasing Importance of Appraisal Reviews

What’s New in Real Estate Valuation Education

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In the organization’s latest video, the Appraisal Institute invited Craig Harrington, SRA, chair of the AI’s Education Committee, to discuss what’s new in AI’s real estate valuation education offerings, which include classroom and online courses, seminars and webinars covering commercial, residential and combined topics. The AI also addresses the Uniform Standards of Professional Appraisal Practice, commonly known as USPAP. [Read more…] about What’s New in Real Estate Valuation Education

Appraisal Institute Helps Appraisers Analyze Real Estate Market Trends

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The nation’s largest professional association of real estate appraisers published guidance June 4 to help appraisers analyze market trends. The Appraisal Institute’s “Guide Note 12: Analyzing Market Trends” addresses to what extent appraisers are responsible for recognizing changes in market conditions, and what steps appraisers must take to ensure due diligence is done regarding the analysis of market trends.

The Guide Note states, “Analyzing current and anticipated market conditions is more complicated – and more critical – when a market is rapidly changing, either upward or downward.”

Adequate market analysis must be completed before highest and best use analysis, and the determination of highest and best use is critical to an appraisal assignment when market value is the objective, according to the Guide Note.

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