For a full description of the forms,
visit www.appraisalinstitute.org/
education/ aireports.aspx.
USPAP for at least a Restricted Use Appraisal Report. For single-family residential
properties, we recommend the AI Reports
Form 200.03, Restricted Use Appraisal
Report • Residential, as shown on page 22.
Note that when using this form the
first two pages and the certification
page, at a minimum, must be included.
The form comes with many additional
pages, but these are optional and are
to be included only when required to
meet the client’s information needs.
It’s critical to remember that when
you provide a Restricted Use Appraisal
Report, the reporting process is abbreviated, but the development process is
not. You must complete the development process—collecting, confirming and
analyzing data—to just the same degree
as you would if you were providing
a more detailed Summary of Self-Contained Appraisal Report. According
to USPAP, the work file in the case of
a Restricted Use Appraisal Report must
contain enough information so that you
could, if requested at a later date, put
together a Summary Appraisal Report.
9. After consulting with the client, it’s clear a price analysis is
needed. The property is a single-family residence. What kind of
report should I provide?
Here too, for single-family residential
properties, we recommend using the AI
Reports Form 200.03, Restricted Use
Appraisal Report • Residential. Include
the first two pages, the certification
page as in question 8 and supplement
with the Supplemental Information for
Pricing Purposes pages, as shown at
left. These supplemental pages provide
information about property condition and recommended repairs; current
competition; anticipated marketing time;
and adverse conditions that might impact
marketability. Depending on your client’s
needs, you might also attach subject,
comparable sale, and comparable listing
photos and maps showing the subject and
comparable sale and listing locations.
There are several BPO forms available
from various software providers and others. Appraisers must use caution, however.
It is the appraiser’s responsibility to make
sure that in using a form you meet the
reporting requirements of USPAP. Some
of the BPO forms currently in circulation do not comply with USPAP unless
supplemented.
Real property appraisers are uniquely
qualified to analyze real property markets
and develop opinions about market value
(most probable price). They are also
capable of providing clients with information for purposes of pricing a property
for sale.
STEPHANIE COLEMAN, MAI, SRA, is the Appraisal Institute’s senior manager of ethics
and standards counseling. As such, she was
charged by the Appraisal Institute’s Appraisal
Standards Committee to develop an article on
BPOs, per the directive of the board of directors.
Coleman is available for a variety of member
requests and inquiries regarding ethics and
USPAP interpretation. Reach her at scoleman@
appraisalinstitute.org or 877-777-6939.
