Property Valuation
What is a 'complete appraisal' versus a 'limited appraisal' under USPAP?
AA complete appraisal covers the interior; a limited appraisal is drive-by only
BA complete appraisal applies all applicable USPAP requirements without modification; a limited appraisal involves a departure from certain USPAP standards through client agreement✓ Correct
CA complete appraisal is required for all loans over $500,000
DUSPAP does not make this distinction; all appraisals are complete
Explanation
Under older USPAP versions, a limited appraisal allowed certain departures from standard requirements with client disclosure and agreement. The current USPAP (2020-2021 edition) no longer uses these terms—appraisers must develop credible appraisals, and any departures from customary practice must be disclosed. The concept now is addressed through scope of work: different assignments may have different scopes while still meeting USPAP requirements.
Related Illinois Property Valuation Questions
- In the cost approach to value, the formula for determining value is:
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- A property that sold for $350,000 five years ago is similar to one that sold for $425,000 today in a comparable neighborhood. The annual appreciation rate is approximately:
- What is 'external obsolescence' in property valuation?
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- A subject property has a two-car garage, while the best comparable has a one-car garage. Paired sales data suggests a two-car garage adds $15,000 in value. The appraiser should:
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- The sales comparison approach to value is MOST reliable when:
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