March 09, 2006
Appraisal Foundation Clarifies “Recertification of Value” vs. “Update”
In its January 2006 USPAP Q&A, the Appraisal Standards Board of The Appraisal Foundation affirmed that recertifications of value are still permitted, clarifying that the term “recertification of value” is often mistakenly used by some clients in place of the term “update.”
“Appraisers may perform a ‘recertification of value’ to confirm whether or not the conditions of a prior appraisal have been met. However, if a client wants to know whether the value of a property has changed (or remained the same) since a prior appraisal, this is an ‘update,’” the ASB wrote. “Regardless of the label used, an appraisal of a property that was the subject of a prior assignment is not an extension of the prior assignment – it is a new appraisal assignment.”
The USPAP Q&A does not establish new standards or interpret existing standards, but is intended to inform appraisers, regulators and users of appraisal services of the ASB responses to questions raised by regulators and individuals. For further information regarding USPAP Q&A, contact John S. Brenan, Director of Research and Technical Issues, at 202-624-3044.