A valuer’s guide to USPAP 2024

• Structure 1 of 4 · Front matter

• Structure 2 of 4 · Rules

The Definitions fix the meaning of terms used throughout, such as client, intended user, assignment results, credible, scope of work and workfile. The Preamble states USPAP’s purpose: to promote and maintain a high level of public trust in appraisal practice.

The Ethics, Record Keeping, Competency, Scope of Work and Jurisdictional Exception Rules apply to every appraisal and appraisal review, whatever the asset type, and set the baseline that each standard builds on.

• Structure 3 of 4 · Standards

• Structure 4 of 4 · Guidance

Ten standards in five pairs

Advisory Opinions

Each discipline has a development standard and a reporting standard: 1–2 real property, 3–4 appraisal review, 5–6 mass appraisal, 7–8 personal property, and 9–10 business and intangible assets.

Since 2024, Advisory Opinions and FAQs sit in the separate USPAP Guidance and Reference Manual. They illustrate how to apply USPAP to specific situations but do not create new requirements.

• Core rule 1 of 4 · Ethics Rule

• Core rule 2 of 4 · Ethics Rule

An appraiser must not act in a manner that violates or contributes to a violation of antidiscrimination laws, such as the Fair Housing Act and the Equal Credit Opportunity Act. Conduct requires impartiality, objectivity and independence: no advocacy, no predetermined results, no misleading reports.

Disclose any fee or thing of value paid to procure an assignment, never accept compensation contingent on a value, direction or stipulated result, and keep advertising truthful. Confidential information goes only to the client and to parties authorised by law or the client.

• Core rule 3 of 4 · Competency Rule

• Core rule 4 of 4 · Scope of Work Rule

Competent, or say so

Identify the problem first

Before accepting, be competent for the asset type, market, geography and analytical methods, or disclose the lack of competency to the client, acquire it and describe the steps taken in the report. If competency cannot be gained, decline or withdraw.

Identify the problem to be solved, then perform the research and analyses needed for credible results, meeting what regular users of similar assignments expect and what an appraiser’s peers would do. Disclose the scope of work actually performed.

■ Structured summary

USPAP 2024, rule by rule

The left column follows the rules and front matter in the order a valuer meets them. The right column maps the ten standards, the certification and the guidance that sits outside USPAP itself.

Rules and front matter

Standards and guidance

Definitions and Preamble: the defined terms used in every assignment and the purpose of public trust; who must comply (by law, regulation or agreement) and who may choose to.

Standards 1–2 Real property: develop with the applicable sales comparison, cost and income approaches and reconcile; report as an Appraisal Report or Restricted Appraisal Report.

Ethics Rule: four sections on Nondiscrimination, Conduct, Management and Confidentiality, including disclosure of any services on the subject in the prior three years.

Standards 3–4 Appraisal review: develop a credible opinion on the quality of another appraiser’s work, then report it with a signed certification.

Record Keeping Rule: a workfile before any report is issued, with true copies of written reports, summaries of oral reports and testimony, and the data supporting the results; kept five years, or two years after final disposition of a judicial proceeding with testimony, whichever is later.

Standards 5–6 Mass appraisal: models that value groups of properties, usually for ad valorem taxation; reported in writing.

Competency Rule: knowledge and experience for the assignment, or disclosure, acquisition of competency and description in the report.

Standards 7–8 Personal property: art, antiques, jewellery, machinery and equipment, with the relevant market and market level identified.

Scope of Work Rule: problem identification, an acceptable scope that produces credible results, and disclosure of the scope performed; no limiting the scope in a way that makes results misleading or not credible.

Standards 9–10 Business and intangible assets: equity interests, control and marketability, and the income, market and asset-based approaches.

Jurisdictional Exception Rule: if law or regulation precludes compliance with part of USPAP, only that part is void for the assignment; identify the law and disclose it in the report.

Certification: every written report includes a signed certification on impartiality, compensation, prior services, inspection and significant assistance, in the form set by each reporting standard.

Guidance: Advisory Opinions such as AO 39 and AO 40 on antidiscrimination, plus FAQs, in the USPAP Guidance and Reference Manual; illustrative, not enforceable on their own.

• Key concept 1 of 4 · Problem identification

• Key concept 2 of 4 · Assignment conditions

The client and other intended users, the intended use, the type and definition of value, the effective date, the subject and its relevant characteristics, and the assignment conditions. Settle these before choosing the scope of work.

An extraordinary assumption is presumed true but uncertain, such as unverified data. A hypothetical condition is contrary to known fact, such as a planned building valued as complete. Use either only if needed and credible, and disclose its effect.

• Key concept 3 of 4 · Dates

• Key concept 4 of 4 · Report options

Effective vs report date

Two reporting options

The effective date sets the context for the value opinion, which may be current, retrospective or prospective. The date of the report is stated separately, because it shows whether the perspective of the appraisal is current or not.

An Appraisal Report summarises what users need to understand the results. A Restricted Appraisal Report is for the client and named users only and states its limits prominently; the workfile must still support a full Appraisal Report.

■ Two checklists

Two checklists every USPAP assignment needs

Settle the problem identification before you start, because it drives the scope of work. Before you sign, check the minimum report content; the list below follows Standards Rule 2-2 for real property, and the other reporting standards follow the same pattern.

Before you start

Report (SR 2-2)

1. Client and users: the client, by name or type, and any other intended users.

1. Parties and use: the client and intended users, the intended use, and the type and definition of value with its source.

2. Intended use: the use of the assignment results, as identified with the client.

2. Subject: the property and the real property interest appraised, with relevant characteristics.

3. Value: the type and definition of value and its source.

3. Dates: the effective date of the appraisal and the date of the report.

4. Date and subject: the effective date, the subject, the interest appraised and its relevant characteristics.

4. Scope of work: a summary of the scope used, including why any of the three approaches was excluded.

5. Conditions: extraordinary assumptions, hypothetical conditions, laws, regulations and supplemental standards.

5. Analysis: the information analysed, methods, reasoning, reconciliation, current use and, where relevant, highest and best use.

6. Scope of work: the research and analyses needed for credible results, and whether competency must be acquired or disclosed before acceptance. Disclose prior services on the subject in the last three years.

6. Assumptions: every extraordinary assumption and hypothetical condition, stating that their use might have affected the assignment results.

7. Certification: a signed certification under Standards Rule 2-3, covering impartiality, compensation, prior services, inspection and significant assistance.

• Practice point 1 of 4 · Independence

• Practice point 2 of 4 · Prior services

Do not accept an assignment, or a fee, contingent on a predetermined result, a direction that favours the client, the amount of the value or a later event such as a loan closing. A target value from the client is a reason to decline or reset the terms.

Disclose to the client before accepting, and again in the certification, any services on the subject property in the three years before acceptance, whether as an appraiser or in any other capacity. If there were none, say so.

• Practice point 3 of 4 · Antidiscrimination

• Practice point 4 of 4 · Outside the US

Mind location language

USPAP alongside IVS

Never base conclusions on protected characteristics, or on code words that stand in for them. Advisory Opinions 39 and 40 show how location and demographic data can become discriminatory in residential appraisal reports.

USPAP is a US standard. Elsewhere it applies only when a client, contract or regulator requires it. Where IVS or national standards also apply, reconcile the definitions and state in the report which standards govern the assignment.

✱ Keep learning

Read the official text, then go deeper

This guide is Valuvix’s independent summary of the 2024 Edition of USPAP. Valuvix is not affiliated with The Appraisal Foundation or its Appraisal Standards Board. Rely on the official publication and the USPAP Guidance and Reference Manual; state-credentialed US appraisers also complete the 7-hour USPAP Update Course every two years. Compare with our IVS 2025 and RICS Red Book guides.