In 1989, the Uniform Standards of Professional Appraisal Practice (USPAP) was authorized by Congress as the standard for appraisal practice in the United States of America. The main purpose of USPAP is to promote public trust in the appraisal profession by prescribing detailed rules for:
How appraisals are conducted and reported.
Ensuring the appraiser is independent, impartial, and objective.
Ensuring specific methodologies that are employed to reach a conclusion and value opinion.
USPAP has been adopted by most banks, insurance companies, leasing companies, and court systems. Therefore, these institutions expect appraisals to be conducted and the appraisal report to be written in a manner that complies with USPAP.
USPAP is considered to be the minimum standard for professional appraisers, so appraisers that don’t comply with USPAP are, well…not really professional. An appraisal report that is not USPAP compliant could be rejected by a bank, insurance company, court, etc. If that institution allows you to try again, you will need to spend more money to hire another appraiser who does comply with USPAP.
Here are some questions to ask an appraiser before you hire them:
What does USPAP stand for?
Have you taken the USPAP training?
Do you have a USPAP certificate?
Describe how USPAP compliance is indicated in your appraisal report?
Some indications that an appraiser is not USPAP compliant are:
The appraiser offers to help you “hit a value number” or help you make the loan.
The appraisal cost is contingent upon the valuation of the vehicle.
The appraiser is not independent or impartial. For example, the appraiser is an employee of the dealer you are buying the vehicle from.
The appraiser does not visit the vehicle to inspect it and take photos.
Auto Appraisal Carolinas is your Charlotte area professional appraiser, who meets the USPAP requirements that banks, insurance companies, leasing companies, and court systems demand.