USPAP 2018-2019 Edition
© The Appraisal Foundation
(c) identify the type and definition of value, and, if the value opinion to be developed is market value,
ascertain whether the value is to be the most probable price:
in terms of cash; or
in terms of financial arrangements equivalent to cash; or
(iii) in other precisely defined terms; and
(iv) if the opinion of value is to be based on non-market financing or financing with unusual conditions
or incentives, the terms of such financing must be clearly identified and the appraiser’s opinion
of their contributions to or negative influence on value must be developed by analysis of relevant
Comment: When reasonable exposure time is a component of the definition for the value opinion
being developed, the appraiser must also develop an opinion of reasonable exposure time linked to
that value opinion.
(d) identify the effective date of the appraiser’s opinions and conclusions;
(e) identify the characteristics of the property that are relevant to the type and definition of value and
intended use of the appraisal,
its location and physical, legal, and economic attributes;
the real property interest to be valued;
(iii) any personal property, trade fixtures, or intangible items that are not real property but are included
in the appraisal;
(iv) any known easements, restrictions, encumbrances, leases, reservations, covenants, contracts,
declarations, special assessments, ordinances, or other items of a similar nature; and
whether the subject property is a fractional interest, physical segment, or partial holding;
Comment on (i)–(v): The information used by an appraiser to identify the property characteristics must be
from sources the appraiser reasonably believes are reliable.
An appraiser may use any combination of a property inspection and documents, such as a physical legal
description, address, map reference, copy of a survey or map, property sketch, or photographs, to identify
the relevant characteristics of the subject property.
When appraising proposed improvements, an appraiser must examine and have available for future
examination, plans, specifications, or other documentation sufficient to identify the extent and character of
the proposed improvements.
Identification of the real property interest appraised can be based on a review of copies or summaries of title
descriptions or other documents that set forth any known encumbrances.
An appraiser is not required to value the whole when the subject of the appraisal is a fractional interest, a
physical segment, or a partial holding.
(f) identify any extraordinary assumptions necessary in the assignment;
19 See Advisory Opinion 7,
Marketing Time Opinions
, and Advisory Opinion 35,
Reasonable Exposure Time in Real and Personal Property
Opinions of Value
20 See Advisory Opinion 34,
Retrospective and Prospective Value Opinions.
21 See Advisory Opinion 2,
Inspection of Subject Property,
and Advisory Opinion 23,
Identifying the Relevant Characteristics of the Subject
Property of a Real Property Appraisal Assignment
22 See Advisory Opinion 17,
Appraisals of Real Property with Proposed Improvements