APPRAISAL STANDARD - RULES

Preamble

This Standard deals with the procedures for the development and communication of a formal opinion of value, and incorporates the minimum content necessary to produce a credible report that will not be misleading.

Rules

In the report the appraiser must identify:

1. the client and other intended users, by name;

2. the intended use of the appraiser’s opinions and conclusions;

3. the purpose of the assignment, including a relevant definition of value;

4. the scope of work necessary to complete the assignment;

5. whether the appraisal is current, retrospective, prospective, or an up-date;

6. an analysis of reasonable exposure time linked to a market value opinion;

7. the effective date of the appraiser’s opinions and conclusions;

8. the date of the report;

9. the location and characteristics of the property and the interest appraised;

10. all assumptions and limiting conditions;

11. any hypothetical conditions (including proposed improvements);

12. land use controls;

In the report the appraiser must:

13. state the existing use and the use reflected in the appraisal;

14. define and resolve the highest and best use;

15. describe and analyze all data relevant to the assignment;

16. describe and apply the appraisal procedures relevant to the assignment;

17. support the reason for the exclusion of any of the usual valuation procedures;

18. detail the reasoning supporting the analyses, opinions and conclusions of each valuation approach;

19. when developing an opinion of the value of a leased fee or a leasehold estate, analyze the effect on value, if any, of the terms and conditions of the lease(s);

20. analyze the effect on value of an assemblage;

21. analyze the effect on value of anticipated public or private improvements;

22. analyze the effect on value of any personal property;

23. analyze any current Agreement for Sale, option, or listing of the property;

24. analyze any prior sales of the property;

25. review and reconcile the data, analyses and conclusions of each valuation approach into a final value estimate;

26. report the final value estimate;

27. include a signed certification of value;

Note: An appraiser who signs a certification of value accepts responsibility for the appraisal and the contents of the appraisal report.