Effective 01/01/2001

APPRAISAL STANDARD - RULES

Preamble

This Standard deals with the procedures for the development and communication of a formal opinion of value, and incorporates the minimum content necessary to produce a credible report that will not be misleading.

Rules

In the report the appraiser must identify:

1. the client and other intended users, by name;
   
   

2. the intended use of the appraiser’s opinions and conclusions;
   
   

3. the purpose of the assignment, including a relevant definition of value;
   
   

4. the scope of work necessary to complete the assignment;
   
   

5. whether the appraisal is current, retrospective, prospective, or an up-date;
   
   

6. an analysis of reasonable exposure time linked to a market value opinion;
   
   

7. the effective date of the appraiser’s opinions and conclusions;
   
   

8. the date of the report;
   
   

9. the location and characteristics of the property and the interest appraised;
   
   

10. all assumptions and limiting conditions;
    
    

11. any hypothetical conditions (including proposed improvements);
    
    

12. land use controls;

In the report the appraiser must:

13. state the existing use and the use reflected in the appraisal;
    
    

14. define and resolve the highest and best use;
    
    

15. describe and analyze all data relevant to the assignment;
    
    

16. describe and apply the appraisal procedures relevant to the assignment;
    
    

17. support the reason for the exclusion of any of the usual valuation procedures;
    
    

18. detail the reasoning supporting the analyses, opinions and conclusions of each valuation approach;
    
    

19. when developing an opinion of the value of a leased fee or a leasehold estate, analyze the effect on value, if any, of the terms and conditions of the lease(s);
    
    

20. analyze the effect on value of an assemblage;
    
    

21. analyze the effect on value of anticipated public or private improvements;
    
    

22. analyze the effect on value of any personal property;
    
    

23. analyze any current Agreement for Sale, option, or listing of the property;
    
    

24. analyze any prior sales of the property;
    
    

25. review and reconcile the data, analyses and conclusions of each valuation approach into a final value estimate;
    
    

26. report the final value estimate;
    
    

27. include a signed certification of value;

Note: An appraiser who signs a certification of value accepts responsibility for

the appraisal and the contents of the appraisal report.