What is the intended use of an appraisal?
The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value.
Where is intended user on appraisal?
client
INTENDED USER: the client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment. The client is always an intended user for an appraisal or appraisal review assignment.
What is the stated purpose of USPAP?
Published by The Appraisal Foundation, USPAP is recognized as the source for standards for professional appraisal practice in the United States and many other parts of the world. The main purposes of USPAP are to protect the public and to promote public trust in the appraisal profession.
Does USPAP require highest and best use?
USPAP (Uniform Standards of Professional Appraisal Practice 2016 – 2017) has requirements the appraiser is to follow. Standard 1-3 (b) requires the appraiser to develop an opinion of the highest and best use of the real estate.
Why are Uspap advisory opinions issued?
Why are USPAP Advisory Opinions issued? To Illustrate the applicability of appraisal standards. A Workfile must be maintained for: appraisal and appraisal review assignments only.
When appraising a business equity interest the appraiser must identify?
In developing an appraisal of an interest in a business enterprise or intangible asset, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and cor- rectly complete the research and analyses necessary to produce a cred- ible appraisal.
Who are intended users?
The primary intended users are those particular individuals or groups who are affected by the outcome ofthe evaluation, are in a position to make decisions about the evaluation, and intend to use the evaluation process or findings to infonn their decisions or actions.
Who is responsible for identifying intended users in an appraisal assignment?
The appraiser
The appraiser must identify both the intended users and the intended use of the appraisal, because these two factors affect many aspects of the appraisal assignment, such as the appropriate scope of work and the appropriate type of report.
What is the meaning USPAP?
The Uniform Standards of Professional Appraisal Practice (USPAP) is the generally recognized ethical and performance standards for the appraisal profession in the United States.
What are USPAP guidelines?
USPAP is a set of national Standards that is applicable for most U.S. appraisals. USPAP is developed by the Appraisal Standards Board (ASB) of The Appraisal Foundation. Standards 1 and 2 establish requirements for the development and reporting of a real property appraisal.
What does maximally productive mean?
Most Profitable or Maximally Productive Use: The test of maximum productivity is applied to the uses that have passed the first three tests. Of the financially feasible use or uses, the highest and best use is the one that produces the highest fair market value or highest rate of return.
Which entity is responsible for writing amending and interpreting USPAP?
Although the ASB writes, amends, and interprets USPAP, the Board does not enforce USPAP. Through FIRREA, the federal government has mandated that the states enforce real property appraiser compliance with USPAP.