Valuation Review recently reported that the Appraisal Practices Board (APB) of The Appraisal Foundation has issued additional guidance for appraisers, which is designed to help those that collect and verify the data that’s used in the sales comparison approach for residential properties.
The APB’s new guidance—known as, “Valuation Advisory 8: Collection and Verification of Residential Data in the Sales Comparison Approach for Residential Properties”—is filled with specific guidelines and examples that pertain to verification as outlined by the GSEs, FHA, and the VA. It also includes secondary market requirement guidelines as well as state requirement guidelines, and spells out examples of professional association standards and laws.
Examples are given throughout the guidance regarding different property-types and assignments, which appraisers can look at and incorporate into their own processes. The provided examples also outline and remind appraisers about the USPAP obligation that requires them to collect, analyze, and verify the necessary data to produce credible assignment results.
This new guidance is the first of two documents to be issued by the APB regarding the collection and verification of data, as the Board is currently developing a companion advisory – which will be known as, “Collection and Verification of Data used in the Sales Comparison Approach for Non-Residential Properties.”
To view the APB’s “Valuation Advisory 8: Collection and Verification of Residential Data in the Sales Comparison Approach for Residential Properties” in its entirety, click here.