New Year is Time for New ISA Report Checklist
Wednesday, January 10, 2018 in Business Tips
Happy New Year! The Education team and I wish everyone a very happy, healthy, and prosperous 2018.
With the new year, it is new USPAP time. Everyone should now be writing to the USPAP 2018-2019 Edition, even if you have not taken the class. All appraisers are responsible for knowing and implementing the new USPAP changes that were effective on January 1 of this year. The manuals are available for sale in hard copy and electronic versions at The Appraisal Foundation’s website. If you haven't already, please review ISA’s upcoming schedule of USPAP classes and register today. We are offering classes online as well as special in-person sessions, including one coming up later this month in Dallas, Texas.
Also new for 2018, the Education team and I have updated the ISA Report Checklist for Appraisal and Restricted Appraisal Reports.
This January 2018 Checklist has a few updates in the hope of streamlining and clarifying the information necessary for your reports to be written to the current ISA Appraisal Report Writing Standard. We do realize the that the ISA Appraisal Report Writing Standard is very comprehensive and exceeds that of USPAP standards. As the largest professional personal property appraisal association, our members are the most highly trained and rigorously tested. We are proud that we hold ourselves to the highest standards.
A few of the important updates on the 2018 ISA Report Checklist include:
- (#12) We added that a citation for the definition of cost or value should be included in your report for every cost or value, not just fair market value. If there is no federal, state/province, or local regulation or law to cite, then you can cite the Core Course in Appraisal Studies manual as the source for your definition. The newly revised January 2018 edition will shortly be available for purchase on the ISA website.
- (#16) When describing the appropriate market for the intended use of your appraisal, we added the level of the market to the checklist. We know that occasionally there could be multiple markets that appropriate for the property being appraised. Thus, when there are multiple markets, it is important to identify the one you chose and why to show that you have selected the most appropriate market for the most common use of the property.
- (#24) The USPAP certification statement has been condensed into one check box. We highly recommend inserting the statement directly from USPAP Standards Rule 8-3, then editing the statement as applicable to your assignment. The phrases in parentheses mean that you should choose one or the other phrase as applicable to your assignment. You should also include the year of the current USPAP Standard.
- (#31) You should make sure to include any specific extraordinary assumptions and/or limiting conditions that are applicable to your assignment. You should also include a statement that if any assumption made is found to be false, then it could alter your opinions or conclusions. This will help your client understand your report more clearly.
- (#38) The "Qualified Appraiser" statement is the same as the "Pension Protection Act" statement that was included on the 2016 Checklist. As it is now more commonly known as the "Qualified Appraiser" statement, we updated the verbiage. See 2018 Core Course manual L12-14 for sample language on how to include it in your report.
- Other minor clerical edits for consistency and clarity.
Please do not hesitate to contact me or one of your instructors if you should have any questions regarding the new checklist. You can also register now for the free Office Hours with the Director of Education webinar to be held on January 30, where I will be answering questions about the new checklist and reviewing common mistakes the Education team sees when reviewing appraisals of all levels.
I hope to see everyone at Assets in Pasadena, California, March 9-12. You won’t want to miss it.
- Meredith Meuwly, ISA CAPP
ISA Director of Education