The 10 USPAP Standards: What Every Appraiser Should Know

The Uniform Standards of Professional Appraisal Practice (USPAP) provide the framework for ethical and competent appraisal work in the United States. Whether you are valuing real estate, personal property, or a business, understanding the 10 USPAP standards is essential for producing reliable and defensible reports.

This article explains each of the 10 standards, how they apply in various valuation fields, and why they matter to appraisers and clients.

What Is USPAP?

USPAP outlines the minimum performance and ethical guidelines for professional appraisers. It is the recognized standard in the United States and is often required by state law, federal regulation, or client contract. USPAP helps ensure that appraisal reports are developed and communicated in a consistent, objective, and transparent way.

The 10 USPAP Standards

USPAP is organized into 10 individual standards. Each one applies to a specific type of assignment and focuses either on development or reporting.

Standards 1 and 2: Real Property Appraisal

• Standard 1 covers the development of real property appraisals. It ensures appraisers use accepted methods and produce credible results.
• Standard 2 covers the reporting of real property appraisals. The report must be complete, clear, and not misleading.

Standards 3 and 4: Appraisal Review

• Standard 3 addresses how to develop an appraisal review. The reviewer must evaluate another appraiser’s work and form an independent opinion about its quality.
• Standard 4 relates to reporting the results of an appraisal review. It requires accurate and well-supported communication of the review findings.

Standards 5 and 6: Mass Appraisal

• Standard 5 applies to the development of mass appraisals, typically used by tax authorities or large-scale valuation projects.
• Standard 6 outlines how mass appraisal results should be reported in writing and communicated clearly to users.

Standards 7 and 8: Personal Property Appraisal

• Standard 7 deals with the development of personal property appraisals, including items such as artwork, antiques, equipment, and collectibles.
• Standard 8 covers how personal property appraisals are reported and ensures the final work product is accurate and understandable.

Standards 9 and 10: Business and Intangible Asset Appraisal

• Standard 9 guides the development of appraisals involving businesses or intangible assets like goodwill, intellectual property, or partnership interests.
• Standard 10 focuses on the proper reporting of business or intangible asset appraisals.

Why These Standards Matter

The 10 USPAP standards help build trust in the appraisal profession. They ensure that all appraisers operate with consistency, transparency, and accountability. Following these standards protects the public, upholds the integrity of the profession, and reduces the risk of legal disputes.

Key USPAP Rules That Support the Standards

USPAP also includes several core rules that apply to all types of appraisal work:

• Ethics Rule requires appraisers to act with honesty, impartiality, and independence.
• Record Keeping Rule mandates the creation and retention of a workfile that documents each assignment.
• Competency Rule requires appraisers to have the knowledge and experience needed to complete an assignment correctly.
• Scope of Work Rule ensures the appraiser clearly defines and performs the necessary level of analysis.
• Jurisdictional Exception Rule allows an appraiser to comply with local laws that may override specific USPAP requirements.

Staying Compliant with USPAP

Appraisers are responsible for staying current with USPAP updates. The standards are revised every two years. Most state-licensed and certified appraisers must complete a 7-hour USPAP Update Course on a recurring basis. Regular training and education are key to maintaining professional credibility and compliance.

FAQs About the 10 USPAP Standards

What are the 10 USPAP standards?
They are the professional guidelines that govern how appraisers develop and report appraisal, review, mass appraisal, personal property, and business valuation assignments.

Are all appraisers required to follow USPAP?
Yes, in most jurisdictions. Compliance is often required by state law, client agreement, or regulatory agencies.

What is the difference between development and reporting standards?
Development standards guide how an appraisal is created. Reporting standards ensure that the results are communicated clearly and accurately.

Do the USPAP standards apply to every appraisal field?
Yes. There are specific standards for real estate, personal property, business valuation, and mass appraisal work.

What happens if an appraiser does not follow USPAP?
Non-compliance can lead to disciplinary action, loss of licensure, legal liability, or damage to professional reputation.

How often is USPAP updated?
USPAP is updated every two years. Appraisers must stay current with changes and complete mandatory continuing education.

Can appraisers make exceptions to USPAP?
Only in rare cases. The Jurisdictional Exception Rule allows flexibility when a specific law or regulation overrides USPAP requirements.

Does following USPAP guarantee the appraisal is correct?
Not necessarily. USPAP ensures the process meets professional standards, but the appraiser is still responsible for sound judgment and methodology.

For more guidance on appraisal standards or to speak with our valuation professionals, contact Gavin/Solmonese today.