| Introduction to Standards
In order to ensure public confidence in online appraisal
reports, it is imperative
that the appraisal process and the appraisal
report conform to the Uniform
Standards of Professional Appraisal Practice
(USPAP). Like traditional personal
property appraisals done using photographs
(most notably when the subject property
is no longer available for inspection such
as because of loss or theft), online appraisal
reports are necessarily conducted under limiting
conditions which results in a value
conclusion based on defined extraordinary
assumptions such as to identity, age,
condition, or authenticity.
Accordingly, the client must be advised that value conclusions
based on extraordinary assumptions are
likely to be less reliable than value conclusions
which are not so encumbered. If the extraordinary
assumptions are so limiting that the appraiser
is unable to arrive at a value conclusion
which is not misleading to the client,
the appraiser must decline the assignment
or obtain more information in order to
arrive at a non-misleading value conclusion.
Statements within the appraisal report
calling the client's attention to the possible
unreliability of appraisals based on limiting
conditions and extraordinary assumptions
are required.
Online
appraisal reports rely completely on client-provided
information that is often non-verifiable.
Since information provided by the client
is normally not subject to independent
verification by the appraiser, online appraisal
reports are typically restricted-use appraisal
reports, i.e., they are normally intended
to be used only by the client for personal,
limited applications such as a client's
contemplated sale or purchase, or personal
planning.
Note,
though, that in circumstances such as litigation
or damage claims involving property that
has been stolen or lost and is no longer
available for personal inspection, the
online appraisal process is an appropriate
means of determining value even if there
are intended users of the appraisal other
than the client.
The
Association has adopted the Uniform Standards
of Professional Appraisal Practice (USPAP)
as promulgated by The
Appraisal Foundation of Washington,
DC. AOA members shall conduct appraisals and prepare online
appraisal reports in accordance with USPAP
and with this AOA Appraisal Report Writing Standard.
Click
here for the AOA Online
Appraisal Report Writing Standard. |