The Appraisal Institute—the nation’s largest professional association of real estate appraisers—recently announced the availability of its Standards of Valuation Practice (SVP). According to the Institute, the SVP can serve as an alternative for valuation professionals where national or other standards are not required.
Adopted by the Appraisal Institute’s policy-making board of directors, the Standards of Valuation Practice:
- Can be used as an alternative to the Uniform Standards of Professional Appraisal Practice (USPAP) or the International Valuation Standards (IVS) when the use of USPAP or IVS is not required and the use of the SVP would be appropriate.
- Will serve as an alternative set of standards that could be used – not as an additional set of required standards.
- Will not supplant USPAP or other national standards.
The new standards are divided into 3 categories – Standard A, B, and C.
- Standard A: This deals with the credibility of an appraiser, and discusses issues of competency, problem identification, Scope of Work, and application of methodology.
- Standard B: This pertains to standards for credible reviews, and covers issues of competency, problem identification, Scope of Work, and application of methodology.
- Standard C: This standard touches upon maintaining reports that aren’t misleading, having sufficient report content, and certification.
The Appraisal Institute’s Standards of Valuation Practice will officially become effective on January 1, 2015. To see the full version of the new SVP, please click here.