What is USPAP Compliance?
USPAP-compliant appraisers have pledged to follow the regulations outlined in the Uniform Standards of Professional Appraisal Practice (USPAP) in their appraisal reports. These appraisers undergo a 15-hour course with a written examination based on the material in the USPAP guidance document. Appraisers must take this course and pass the exam to be USPAP-compliant. After passing the initial examination, these appraisers must take a 7-hour update course every 2 years to remain compliant. Additionally, all members of the International Society of Appraisers (ISA) must be USPAP-compliant as part of their membership requirements.
Why is It Important to Hire a USPAP-Compliant Appraiser?
It's critical to hire a USPAP-compliant appraiser because USPAP protects the interests of the client. One of the key features of USPAP is that the appraiser is not allowed to charge an appraisal fee that is based on the appraised value of the items included within the appraisal report. This could lead to situations where an appraised value could be inflated to increase the appraisal fee. USPAP-compliant appraisers will charge by the hour or by the number of items. AppraiseItNow charges by the number of items. To ensure your appraisal is done ethically and professionally, USPAP rules require that appraisers, among other things:
1. Include a signed certification of impartiality in their appraisal report
2. Prepare a detailed work file to document the specifics of the appraisal
3. Meet competency requirements set forth by USPAP