UP Standards

2.3.2.3.3. Fixtures. All fixtures are to be described in narrative or schedule report form with a statement of the type and purpose of each. The current physical condition, relative utility, and obsolescence should be stated for each item or group included in the appraisal, and whenever applicable the repair or replacement requirements to bring the fixture to a usable condition.122 122 See Section 1.3.1.2.  

2.3.2.3.2. Improvements. Describe the following: all improvements including their dimensions; square foot measurements, chronological and effective age, and dates of any significant remodeling/renovation; condition; type and quality of construction; and present use and occupancy. This description may be in narrative or schedule form. Where appropriate, a statement of the method of measurement used in determining gross building area and net rentable areas should be included. All site improvements, including fencing, landscaping, paving, irrigation systems, and domestic and private water systems require description. The appraiser should coordinate such description with the photographs of the property included in the report and with the plot plan (and floor plan, if included). If the appraiser will rely on the cost approach to value, or…

2.3.2.3.1. Site. Describe the present use, accessibility and road frontage, land contours and elevations, soils, vegetation (including timber), views, land area, land shape, utilities, mineral deposits, water rights associated with the property, and relevant easements, etc. A statement must be made concerning the existence or nonexistence of commercially valuable mineral deposits. Also discuss the beneficial and detrimental factors inherent in the location of the property.120 The presence of hazardous substances should be addressed in accordance with Sections 1.3.1.1 of these Standards. An affirmative statement is required if the property is located within a flood hazard area.121 120 Beneficial factors may include such items as desirable views, proximity to desirable public or cultural facilities, or proximity to dedicated open space or…

2.3.2.3. Property Data.

2.3.2.2. Area, City, and Neighborhood Data. This data (mostly demographic and economic) must be kept to an absolute minimum and should only include information that directly affects the subject property, together with the appraiser’s conclusions as to significant trends. The use of “boilerplate” demographic and economic data is unnecessary and, unless the appraiser demonstrates that the specific data directly impacts the current market value of the subject property, it should be excluded.  Changes in the neighborhood brought about by the government’s project for which the property under appraisal is being acquired shall be disregarded. This specific Standard is contrary to USPAP Standards Rule 1-4(f) and is considered a jurisdictional exception. See Section 4.5 (Project Influence) for a discussion of the…

2.3.2.1. Legal Description. This description must be sufficiently detailed to properly identify the property appraised. If lengthy, it should be referenced and included in the addenda of the report. If the client agency has assigned a parcel or tract number to the property, that information should also be referenced. A more detailed standard concerning the legal description of the property to be appraised appears in Section 1.1.1 of these Standards.

2.3.2. Factual Data—Before Acquisition.119 119 If the government’s acquisition is a partial acquisition, it is imperative that the sections of the appraisal report in Section 2.3.2 relate only to the before situation. The appraiser must not attempt to combine the discussion of the factual data after acquisition with the factual data relating to the before situation.

2.3.1.8. Description of Scope of Work. The appraiser shall use this section of the report to identify the seven critical elements that defined the appraisal problem to be solved:  • Client  • Intended users  • Intended use  • Definition of market value  • Effective date  • Property characteristics  • Assignment conditions  This section shall include an explanation of the intended use for the appraisal, and a description of the property rights appraised, which should be provided to the appraiser by the client agency. In most instances the intended use of the appraisal will be to provide an opinion of the market value as of a specific date.117 In an appraisal assignment involving a partial acquisition, the intended use of the…

2.3.1.7. Statement of Assumptions and Limiting Conditions. Any assumptions and limiting conditions that are necessary to the background of the appraisal shall be stated. Any agency or special legal instructions provided to the appraiser shall be referenced and a copy of such instructions shall be included in the addenda of the appraisal report.116  If the appraisal has been made subject to any encumbrances against the property, such as easements, these shall be stated. In this regard, it is unacceptable to state that the property has been appraised as if free and clear of all encumbrances, except as stated in the body of the report; the encumbrances must be identified in this portion of the report.  The appraiser must avoid including…

2.3.1.6. Photographs. Photographs shall show the front elevation of the major improvements, any unusual features, views of the abutting properties on either side, views of the property directly opposite, and interior photographs of any unique features. When a large number of buildings are involved, including duplicates, one photograph may be used for each type. Except for an overall view, photographs may be incorporated in the body of the report as appropriate, or may be placed in the addenda of the report.  Each photograph should be numbered and show the identification of the property, the date taken, and the name of the person taking the photograph. The location from which each photograph was taken and the direction the camera lens was…