The Appraisal Reviewer’s toolbox for detecting issues
Appraisal reviews are used to report issues in appraisal reports authored by another appraiser. These issues are measured by existing standards of care and communicated as compliance to rules, standards, requirements, and professionally accepted appraisal practices. The Uniform Standards of Professional Appraisal Practice (USPAP) is a minimum standard of care intended to promote and maintain public trust in appraisal practice. USPAP represents the generally accepted and recognized standards of appraisal practice in the United States. By establishing requirements for communicating an appraiser’s analysis, opinions and conclusions, appraisal assignment results are reported in a way that is meaningful to the intended users and not misleading.
When appraisals do not claim to be USPAP-compliant, appraisal reviewers can still evaluate the work under review against a general standard of care. Standard of care is the attention and prudence that a reasonable person in the circumstance would exercise. When considering the work under review, the reviewer’s opinion must include an evaluation of the completeness, accuracy, adequacy, relevance, and reasonableness of the analysis and reporting. These characteristics are measured in context of the client’s intended use and consider the scope of work and reporting that a peer appraiser would perform.
Standard of care for the appraisal industry includes adherence to professionally accepted appraisal practice. Appraisal reviews can draw upon sources of rules, standards, and guidelines from numerous sources including appraisal organization standards and best practices; appraisal textbooks, journals, and other publications; presentations by accredited appraisers; and other reliable sources.
How appraisal reviews evaluate machinery and equipment appraisals
Generally, appraisal reviews measure machinery and equipment appraisals against USPAP Standard 8. This standard addresses the minimum required content and extent of reporting that must be included in the appraisal report for the assignment results to be credible. In addition, the American Society of Appraisers’ educational offerings and textbook, Valuing Machinery and Equipment: The Fundamentals of Appraising Machinery and Technical Assets, teaches professionally accepted appraisal practice for valuing machinery and equipment.
At For What It’s Worth Appraisals Inc, our expert appraiser has completed the formal Appraisal Review and Management (“ARM”) education for performing credible appraisal review assignments for evaluating machinery and equipment appraisals. In addition to the courses offered by the ASA, Ms. Blackburn has 7 years of experience reviewing appraisals as a Special Magistrate for Florida tax appeals. She provides consultancy and expert witness services for litigation cases.
Watch this video to learn more about appraisal review services.