How are appraisal values determined?
In accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), an appraiser must: • define the appraisal problem (identify the intended use and users of the appraisal, define the Value(s) to be developed, establish date(s) of Value Opinion(s), identify the subject property(s), identify property rights to be valued, and identify the limited conditions or limitations); • select and collect data through Market Analysis (relevant market, demand components, supply components, trends, and/or forecasts), Property Analysis (description, origin, age, condition, dimensions and/or creator/manufacturer), and Competitive Analysis (sales, rentals, costs, elements of comparison, and/or units of comparison); • analyze the highest and best use opinion through the identification of the location of the most relevant market; • analyze the indicators of Value (collect data, analyze data, and verify where appropriate); • develop the appropriate approach(es) to the Value (Cost, Income,
