USPAP Services USPAP describes two kinds of appraisal analysis and three kinds of appraisal reporting formats. Appraisal Analyses Complete Appraisals AKA:Complete Analysis Appraisals, Full Analysis Appraisals, Full AppraisalsIncludes:All applicable analyses and approaches to valueExample:Appraisals for mortgage underwriting at the federally insured bank Limited Appraisals AKA:Limited Analysis Appraisals, Appraisals prepared using the Departure Provision, Agreed-upon Procedure and Analysis Appraisals, Client-Defined Scopes of Services AppraisalsIncludes:Only those applicable analyses and approaches to value to that the client reasonably requestsExample:A cost analysis of an office building to determine insurable value for insurance underwriting Appraisal Reporting Formats Self-Contained AKA:Full Narrative Reports, Full NarrativesIncludes:Full descriptions throughout the appraisal reporting processExample:Appraisals for mortgage underwriting at the federally insured bank Summary Reports   AKA:Executive Summary ReportsIncludes:Summary descriptions of critical appraisal processesExample:Update Appraisals, Appraisals and Consulting for Tax and Audit Purposes Restricted Use Reports AKA:Letter AppraisalsIncludes:Lists critical appraisal processesExample:Acquisition or Disposition Due Diligence Support Appraisal and Consulting Services These appraisal analysis and reporting format types can be used for traditional appraisals of real estate, personal property or businesses, as well as for appraisal reviews, appraisal consulting, feasibility studies, market studies, mass appraisals, appraisals using automatic valuation models and others. Links to USPAP Statement on Appraisal Standards No. 7 (SMT-7) and Advisory Opinion 15 (AO-15) provide advice and description of Complete Appraisal and Limited Appraisals. Advisory Opinion 11 (AO-11) provides a summary description of the three reporting formats. USPAP Compliant Page

Uncommon Valuation Types Almost all appraisals are of general commercial real estate or homes, for financing purposes, and for bank clients.  As a result almost all appraisers are trained to do only this one group of assets for this one purpose and one type of client. If you are a different type of client, have any other type of property or business, or have some other purpose for your appraisal, then you need a specialist appraiser.  Federal Appraisal specializes in such non-traditional appraisals. From utilities and power plants, specially built real estate, governments, attorneys, accountants, tax, litigation, to development issues, Federal Appraisal provides specialized valuation expertise, including uncommon valuation types. Uncommon Valuation Types Appraisal Review Testimony and Oral Reporting Summary Reporting Calculations Mass Appraisals Portfolio Appraisals Business Valuations Business Intangibles Appraisals Personal Property Appraisals Damages Estimates Cost Segregation Purchase Price Allocations Partial Interest Discount Studies

USPAP Compliant USPAP Services Provided by Federal Appraisal Federal Appraisal LLC provides all types of USPAP appraisal and appraisal consulting services. Full Narratives and Self-Contained Reports Executive Summaries and Summary Reports Letter Appraisals and Restricted Use Reports Complete Analysis Appraisals Agreed-upon Procedure and Analysis Appraisals, Client-Defined Scopes of Services Appraisals, Limited Appraisals, Appraisals prepared using the Departure Provision. Go to the Descriptions of Federal Appraisal LLC’s USPAP Services page for explanations of this services Additionally, Federal Appraisal LLC provides a full array of non-USPAP appraisal and consulting services.  Additionally, Federal Appraisal LLC provides a full array of non-USPAP appraisal and consulting services.  Background on USPAP USPAP contains the recognized standards of practice for real estate, personal property and business appraisal. Nearly all conventional appraisal services are subject to the Uniform Standards of Professional Appraisal Practice (USPAP).  When the law requires a USPAP appraisal, the client must have a USPAP compliant appraisal, which is certified by the state licensed or certified appraiser.  Full analysis, complete narrative appraisals for mortgage underwriting purposes are the most common type of USPAP appraisal for commercial property types (full form reports, for one to four family property types).  It should be noted, however, that USPAP prescribes a number of important appraisal services beyond full analysis, complete narrative appraisal. Furthermore, when the law does not require a USPAP appraisal, clients have still more options. Knowing when a USPAP appraisal service is needed and when it is not, and what type of USPAP appraisal services to order can save clients considerably on fees and on opportunity costs from inappropriate business decisions based on ill fitting appraisal and consulting services. What Is USPAP? The Uniform Standards of Professional Appraisal Practice (USPAP) prescribe the minimum ethics and standards required of an appraiser.  It was enacted in 1989 with the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) The following are links to the agencies and organizations that promulgate or help promulgate USPAP. Uniform Standards of Professional Appraisal Practice (USPAP) The Appraisal Subcommittee The Appraisal Foundation The Appraisal Institute USPAP Applicability USPAP applies to federally regulated transactions, mainly federally insured banks.  It also applies to other important but less common situations, such as many state courts that hear property tax appeals. Importantly, it does not apply to all federal and state agencies.  USPAP does not apply to appraisals prepared for the IRS and for tax related purposes, unless that type of service is negotiated between the client in the appraiser. Organizations that are Subject to USPAPOrganizations that are Not Subject to USPAP*Office of the Controller of Currency Office of Thrift Supervision Federally Insured BanksInternal Revenue Service Securities and Exchange Commission* Note:  Even when an agency is not required to employ USPAP, in most cases we highly recommend its use. Common USPAP Fallacies There are perhaps few other documents in the business world that have been as misunderstood and that have caused as much consternation as USPAP has.  Federal Appraisal LLC has listed the most common fallacies concerning USPAP, because the professionals at Federal Appraisal believe that a clearer understanding of USPAP, by both the users of appraisals and the appraisers themselves, could save the real estate community hundreds of millions of dollars in appraisal fees and investment opportunity costs.

Appraisal Reporting Services Depending on our clients’ needs, Federal Appraisal provides its deliverables in various appraisal reporting formats.  Our standards permit several standard formats.  Federal Appraisal will assist the client in choosing the right format for them. USPAP Formats Real Estate Appraisal Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Business Appraisal Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Calculations Limited Analysis Personal Property Appraisal Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Appraisal Review Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Mass Appraisal Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Yellowbook Standards URA Standards Market Value and Premises of Value Highest and Best Use Going Concern Orderly Liquidation Forced Liquidation Go Dark Scenario Market Value Fair Market Value Value in Use Many Others