THE APPRAISAL PROCESS

The Uniform Standards of Professional Appraisal Practice (USPAP) was established to provide a benchmark by which credibility can be established in order to promote public trust. All Novotny appraisals comply with USPAP.

The appraiser's methods and investigation must be ethical, independent, objective, unbiased and fact based. The appraiser, the appraisal process and the appraisal product must be trustworthy.  The appraiser may not favor one side over another at the outset of an investigation. In order to remain objective each opinion must be based upon what exists and known facts rather than on preconceived, subjective or personal views.  Independence signifies freedom from outside influence or control. Independence enables an appraiser to be objective and impartial. There are important ethical obligations for appraisers.

The personal property appraiser must be competent. The appraiser must be adequately informed regarding the property type and its relevant market. The appraiser must understand general valuation theory, and correctly employ necessary methods and techniques. The appraiser must understand the legal requirements applicable to an assignment.

The appraiser must identify and understand the client's problem. The intended use of the appraisal report drives the entire appraisal process. The appraiser must carefully communicate with the client to determine how the report will be used, and what actions will be taken based the appraisers' opinions and the assignment results.

Doing too much or too little research benefits no one. Market experience and knowledge of the property type help limit the need for continuing investigation. The scope of work required to develop a credible value opinion varies. Professional standards allow the appraiser the freedom to exercise their judgment in determining the type and extent of property inspection, identification, data collection, and analysis necessary to develop a credible opinion. The burden is on the appraiser to make the right decisions.

It is the analysis of market data and research findings that provides support for the appraiser's determination of value. Comparable properties offered or sold in the relevant market are researched and analyzed. Adjustments are made to account for differences based on standard appraisal theory and methods.

The appraisal report documents the appraisal investigation in various degrees of detail. The report must be relevant to intended use; it must be properly developed, meaningful to the client and intended users and not misleading. The report must convey sufficient information to allow users to understand the report properly in order to evaluate the degree or reliance to place upon the report. The report should ensure readers that all elements of the assignment, and the appraisal process, are compliant with USPAP, and that the opinions, analysis and conclusions of the appraiser are credible and therefore worthy of belief.