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    Standards of Professional Practice

    Standards of Professional Practice

    Appraisal standards establish requirements for appraisers for the development and reporting of their analyses, opinions and conclusions. Standards help promote and maintain trust in the valuation profession.

    The Appraisal Institute Standards of Professional Practice are composed of:

    • The Standards of Valuation Practice (SVP), promulgated by the Appraisal Institute, and the Certification Standard of the Appraisal Institute; or
    • Applicable national or international Standards, and the Certification Standard of the Appraisal Institute. (The Uniform Standards of Professional Appraisal Practice (USPAP) is an example of a national standard and the International Valuation Standards (IVS) is an example of an international standard.)

    View the Preamble to the Appraisal Institute Standards of Professional Ethics.

    The AI SVP is a set of high quality, straightforward, principle-based standards that can be used where other valuation standards are not already required or do not apply.

    It can help valuers meet the evolving needs of their clients.

    The SVP includes three standards:

    • Standard A establishes requirements for the development of an appraisal.
    • Standard B establishes requirements for the development of a review.
    • Standard C establishes requirements for the reporting of an appraisal or review.
    View the Standards of Valuation Practice

    USPAP is a set of national Standards that is applicable for most U.S. appraisals. USPAP is developed by the Appraisal Standards Board (ASB) of The Appraisal Foundation.

    • Standards 1 and 2 establish requirements for the development and reporting of a real property appraisal.
    • Standards 3 and 4 establish requirements for the development and reporting of an appraisal review.
    • Standards 5 and 6 establish requirements for the development and reporting of mass appraisals.
    • Standards 7 and 8 establish requirements for the development and reporting of personal property appraisals.
    • Standards 9 and 10 establish requirements for the development and reporting of business or intangible asset appraisals.

    USPAP also includes:

    • DEFINITIONS which establish the application of certain terminology in USPAP.
    • ETHICS RULE which sets forth the requirements for integrity, impartiality, objectivity, independent judgment, and ethical conduct.
    • RECORD KEEPING RULE which establishes the workfile requirements for appraisal and appraisal review assignments.
    • COMPETENCY RULE which presents pre-assignment and assignment conditions for knowledge and experience.
    • SCOPE OF WORK RULE which presents obligations related to problem identification, research, and analyses.
    • JURISDICTIONAL EXCEPTION RULE which preserves the balance of USPAP if a portion is contrary to law or public policy of a jurisdiction.

    The ASB issues Advisory Opinions which are a form of guidance to illustrate the applicability of USPAP in specific situations and to offer advice from the ASB for the resolution of appraisal issues and problems. Advisory Opinions are not part of USPAP.

    Current and past editions of USPAP can be purchased on the Appraisal Foundation website.

    A free online-only version of USPAP Standards 1-4 can be found at USPAP.org.

    The Certification Standard sets requirements for certification statements that AI professionals must make in written reports.

    View the Certification Standard of the Appraisal Institute.

    The IVS are an example of international standards that may apply to certain assignments.

    The IVS are developed by the International Valuation Standards Council (IVSC) and have been adopted or recognized by many valuation institutes, user groups, and financial regulators around the world.

    The current edition of the IVS can be accessed and downloaded for no charge through the following link:   www.ivsc.org/#access-ivs

    The current Appraisal Institute Body of Knowledge shall be composed of:

    • Currently available textbooks, monographs and Guide Notes published by the Appraisal Institute, excluding compilations of published articles, and
    • Current nationally developed Appraisal Institute course and seminar offerings.

    The current Appraisal Institute Body of Knowledge is an authoritative source of recognized methods and techniques for valuation practitioners.
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    Guide Notes

    Not sure how the Standards of Professional Practice apply to your practice?

    We’ve developed Guide Notes to explain how they may apply in specific situations.

    View the Guide Notes Download Guide Notes as a PDF