Credible Credibility

I mentioned in my last post the importance of the the “credible appraisal.” The Scope of Work employed by the appraiser must be sufficient to produce a credible appraisal. The Uniform Standards of Professional Appraisal Practice (USPAP) has always required the appraiser to produce a credible appraisal. The current edition of USPAP defines “credible” as

“worthy of belief”

USPAP, in the section devoted to the new Scope of Work Rule, comments further on credibility:

“Credible assignment results require support, by relevant evidence and logic, to the degree necessary for the intended use.

The scope of work must include the research and analyses that are necessary to develop credible assignment results.

The scope of work is acceptable when it meets or exceeds:

  • the expectations of parties who are regularly intended users for similar assignments; and

  • what an appraiser’s peers’ actions would be in performing the same or a similar assignment.

Determining the scope of work is an ongoing process in an assignment. Information or conditions discovered during the course of an assignment might cause the appraiser to reconsider the scope of work.

An appraiser must be prepared to support the decision to exclude any investigation, information, method, or technique that would appear relevant to the client, another intended user, or the appraiser’s peers.”

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