UP Standards

1.3.1.7. Assessed Value and Annual Tax Load. The appraiser must collect all information related to the current assessment and dollar amount of real estate taxes. If assessed value is statutorily a percentage of market value, determine the percentage. If the property is not assessed or taxed, the appraiser should collect all necessary information to support an estimate of the assessment and the tax rate to support an estimate of the dollar amount of tax. In some jurisdictions, certain types of property may be assessed based on current use rather than highest and best use. These programs often relate to farmlands, timberlands, and open space; to be eligible, owners may have to agree to leave the property in its existing use…

1.3.1.6. Rental History. The appraiser must collect historical rental or lease history of the property for at least the past three years, if this information can be ascertained. All current leases should be identified and information collected, including: the date of the lease, name of the tenant, rental amount, term of the lease, parties responsible for property expenses, and other lease provisions that impact whether the lease reflects market rent.   

1.3.1.5. Sales History. Since any recent, unforced sale of the subject property can be the best evidence of its value, it is important to collect data on all sales of the property for the 10 years prior to the effective date of value.41 Any offers to buy or sell the subject property should also be identified and evaluated if available. If no sale of the property has occurred in the past 10 years, the appraiser shall identify the most recent sale of the property, whenever it occurred.  These Standards require a 10-year sales history— longer than that required in appraisals for many other purposes—for the reasons discussed in Section 4.4.2. Information to be identified and reported under Section 2 shall…

1.3.1.4. Use History. In developing the appraisal, the appraiser must identify the purpose for which the improvements were designed and the dates of original construction and major renovations, additions, and/or conversions. This is particularly important for properties located in transitional areas (such as a residential neighborhood being converted to higher density residential and commercial uses) or special-use properties (such as church buildings converted to a commercial or residential use). The appraiser should identify a 10-year history of the use and occupancy of the property, if available. Past uses of the property may suggest historical contamination by hazardous substances.   

1.3.1.3. Zoning and Land Use Controls. Zoning is a factor to be considered in evaluating property. Accordingly, if the property to be appraised is subject to zoning, the appraiser must identify the applicable restrictions and interpret the impact of such restrictions on the utility and value of the subject property. If zoning is uncertain, legal instruction may be required. In selecting comparable sales for use in the appraisal, the appraiser should select those sales that have the same or similar zoning as the property being appraised.36  The appraiser must consider not only the use restrictions of the zoning ordinance, but also other provisions of the zoning ordinance that may affect value. Examples include lot area requirements, building setback requirements, floor/area…

1.3.1.2. Improvements. The appraiser must collect and properly analyze data about all improvements located on the subject property. This includes building dimensions; square foot measurements; chronological and effective ages; type and quality of construction; present use and occupancy; interior finishes; type and condition of the roof; type and condition of mechanical, electrical, and plumbing systems; and dates of any significant remodeling or renovations. The appraiser must identify and properly calculate the appropriate method of measurement used in determining rentable areas. In addition, the appraiser must identify the type, quality, and condition of all site improvements, including fencing, landscaping, paving (both roadways and parking areas), irrigation systems, and domestic and private water systems.  Questions regarding whether an item is a fixture…

1.3.1.1. Land. In the development of the appraisal, the appraiser must collect and properly analyze data about the subject property. The appraiser must identify all characteristics that impact value, which may include access and road frontage, topography, soils, vegetation (including timber and crops), views, land area and shape, utilities, mineral deposits, water rights, and easements or other encumbrances. The presence of hazardous substances should be considered by appraisers in accordance with the assignment conditions.   

1.3.1. Property Data.

1.3. Data Collection. As discussed in Section 1.2 (Problem Identification), the starting point for developing an appraisal under these Standards is the legal description of the property to be acquired and the property rights to be appraised. All of the information concerning the characteristics of the land and improvements that influence the value of the subject property must be collected by the appraiser during the process of property inspection and market research.   

1.2.8. Scope of Work. A full understanding of the critical assignment elements discussed above is essential to a proper scope of work that will enable appraisers to solve the appraisal problem they have been hired to solve. It is ultimately the appraisers’ responsibility to discuss these critical elements with the client at the time they are engaged to perform the assignment to ensure the resulting appraisal is credible, reliable, and accurate. The scope of work should reflect the complexity of the property and the market. The intended use and intended users are also critical factors that will impact scope of work decisions.  It is recognized that federal agencies may use (or are directed by statute or other authority to use)…