0.3. Scope. These Standards cover the following areas:

(1) Appraisal Development

(2) Appraisal Reporting

(3) Appraisal Review

(4) Legal Foundations

Section 1: Appraisal Development sets forth the standards that must be followed in developing an appraisal for federal acquisition purposes to ensure a credible, reliable, and accurate valuation that reflects just compensation mandated by the United States Constitution. Section 1 derives from generally accepted professional appraisal standards and federal law. Competent development of an appraisal under these Standards requires an understanding of applicable law, described in Section 4: Legal Foundations and Guidance.

Section 2: Appraisal Reporting presents the content and documentation required for appraisals developed in compliance with these Standards and applicable law. Section 2 also includes a recommended appraisal report format. Agencies may modify these documentation and formatting requirements in certain circumstances to ensure appropriate flexibility to accomplish agency program goals.

Section 3: Appraisal Review addresses technical and administrative reviews of appraisals by appraisers and non-appraisers, and is derived from generally accepted appraisal review standards and federal law and regulations. The purpose of Section 3 is to ensure that appraisals used by the government in its land acquisitions are credible, reliable and accurate and have been conducted in an unbiased, objective, and thorough manner, in accordance with applicable law.

Section 4: Legal Foundations explains the federal law that dictates these appraisal Standards, which apply to appraisals for all federal acquisitions involving the measure of just compensation. Federal case law, cited throughout the section, has long held that market value is normally the measure of just compensation; the rare departures from the market value standard are also discussed. Appraisers who make market value appraisals for federal acquisitions must understand and apply federal law in the development, reporting, and review of appraisals in federal acquisitions. Section 4 also includes a discussion of the legal standards that apply to many recurring valuation problems, as well as guidance on specialized appraisal issues that are unique to federal acquisitions. As a whole, these Standards aim to encourage uniform, reliable, and fair approaches to appraisal problems, and to ensure consistent, effective practices for evaluating appraisal reports for federal acquisition purposes. Nothing in these Standards is intended to limit the scope of appraisal investigations or to undermine the independence and objectivity of appraisers engaged in providing opinions of market value for just compensation purposes. With appropriate modifications, these Standards—or rather, portions of these Standards—may be applied to valuations for non-acquisition purposes, such as appraisals for conveyance, sale, or other disposals of federal property. Some rules that must be followed in valuing real property for federal acquisition purposes are inapt or impossible to apply to federal disposals. As discussed in Section 1.2.8, these Standards do not prohibit adapting these valuation rules to address the distinct challenges of appraising federal property for disposal purposes.