USPAP Standard Rule 1-5

 

Standards Rule 1-5

When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: 14

(a)

analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and

(b)

analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal. 15

Comment: See the Comments to Standards Rules 2-2(a)(viii), 2-2(b)(viii), and 2-2(c)(viii) for corresponding reporting requirements relating to the availability and relevance of information.

Original content was published in The Appraisal Foundation site.

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2 thoughts on “USPAP Standard Rule 1-5

  1. Is an appraiser required to report the transfer history of a comparable listing/pending sale in the past 12 months? An AMC recently required me to remove this statement as the comparable was not a “Sale” and, thus, this disclosure/reporting is not required

    • USPAP requires reporting for “closed” sales, however this does not mean you should not report transfers for active/pending listings. The reason they require to remove it is, I think, they go with their check mark, and I guess check lists specifies “closed sales;” but on the same note listings should not go on regular gird either, and listings are not requirement to be in the grid to derive value. I think it is up to you, how you will structure your response; you can prove your right to report, or not to get into fight with them, you can remove this reporting from the grid, but still mention it in report.

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