USPAP (Uniform Standards of Professional Appraisal Practice) is the mandatory, congressionally recognized ethical and performance standard for real estate appraisers in the U.S.. It ensures appraisals used in mortgage lending are independent, objective, and credible. It dictates how appraisals are developed and reported to maintain trust.
The USPAP includes five rules that appraisers must follow. These rules are the Ethics Rule, the Record-keeping Rule, the Competency Rule, the Scope of Work Rule, and the Jurisdictional Exception Rule.
All Uniform Standards of Professional Appraisal Practice (USPAP) courses taken for basic education credit must be the 15-hour National USPAP Course taken from an AQB Certified Instructor, who is also a Certified Residential or Certified General appraiser in good standing.
Examples of potential USPAP violations
Making false or misleading statements in an appraisal, appraisal review, or appraisal consulting report. Communicating assignment results with the intent to mislead or to defraud.
The purpose of USPAP is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers.
Through FIRREA, the Federal government has mandated that the states enforce real property appraiser compliance to USPAP. Professional appraiser associations also have the authority to enforce USPAP compliance of their members. In addition, many users of appraisal services (such as lenders, mortgage companies, etc.)
USP AP does not require an appraiser to inspect the subject per the SCOPE OF WORK RULE. However, while an inspection is not required, appraisal reports for real and personal property must contain a signed certification which clearly states whether or not the appraiser personally inspected the subject.
The ASB is responsible for writing, amending and interpreting the Uniform Standards of Professional Appraisal Practice (USPAP).
It contains standards for appraisal disciplines, including real estate, personal property, business valuation, and mass appraisal. Compliance with USPAP® is required for state-licensed and state-certified appraisers who perform appraisals for federally-related real estate transactions.
Personal Property (PP)
Complete a PP-specific, 15-hour USPAP Course and pass the exam with every new release of USPAP (usually every two (2) years).
Per the Uniform Standards of Professional Appraisal Practice (USPAP), there are two appraisal report formats: the restricted appraisal report and the standard appraisal report.
An appraiser must comply with USPAP when either the service or the appraiser is required by law, regulation, or agreement with the client. Individuals may also choose to comply with USPAP any time that individual is performing the service as an appraiser.
The "3-day appraisal rule" refers to requirements under the Equal Credit Opportunity Act (ECOA) for mortgage lenders to provide borrowers with a free copy of the appraisal (and other valuations) at least three business days before loan closing, and to notify them of this right within three business days of application; borrowers can waive the pre-closing timing, but the lender must still provide it promptly. This ensures borrowers see the property's value before committing to the loan, though the lender must also provide it promptly upon completion, even if the loan doesn't close.
The main factors that can hurt a home appraisal include undone but needed updates and repairs, the price of comparable properties, market conditions, your home's location, and whether you hired an inspector to flag issues or necessary repairs.
When talking to a home appraiser, avoid pressuring them for a specific value, asking them to ignore issues, or trying to control their process, as this can be seen as manipulation; instead, provide factual details about upgrades and unique features while remaining polite and objective, letting them do their job. Don't say things like "I need it to appraise for X," "Zillow says my home is worth..." or "Can you leave out the short sales?" because appraisers must stay impartial and can be removed for undue influence.
The ASB maintains USPAP, and issues updates in January of even numbered years.
A home appraisal is an estimate of your property's value, based on factors like age, condition, building materials, neighborhood and sales of comparable nearby homes. Using these and other factors, the appraiser provides an analysis and conclusions about your property's value.
A home appraisal consists of a professional inspection of the property's interior and exterior, a market analysis of comparable recently sold homes (comps), and a detailed report documenting the home's features, condition, location, and estimated market value, including photos and descriptions to support the valuation. Appraisers assess factors like size, age, upgrades, layout, safety issues, and local market trends to arrive at a credible value for lenders.
The most common types of appraisal are:
Here are five fundamental steps to ensure you are fully prepared for your appraisal.