The importance of USPAP standards to your appraisal
Uniform Standards of Professional Appraisal Practice (USPAP) are quality control standards for personal property, intangibles, and business valuation appraisal analysis and reports in the United States and its territories. The IRS requires appraisals written for their use to be USPAP-compliant for certain amounts.
USPAP was developed with the express purpose of promoting and maintaining a high level of public trust and confidence in the professional appraisal practice. The development of uniform standards enhances the role of the appraiser in society, and reinforces the appraiser’s obligations to act in a manner that promotes public trust and confidence.
The standards reflect the multifaceted nature of the profession. Changes are made in conjunction with changes to the appraisal profession, and as they serve the changing needs of potential clients. The changes are intended to improve the clarity, understanding, and enforcement of USPAP.
Formally educated appraisers that are members of professional appraisal associations like ISA are required to maintain USPAP compliance, and keep current with changing rules through continuing education. Compliance involves an initial two-day 15 hour class (including exam), and a 7-hour update class every two years. Whether or not you need an appraisal that will be reviewed by the IRS, full USPAP compliance along with affiliation with a professional appraisal association are the truest indications of an appraiser’s seriousness and professionalism. Read more about USPAP here.