USPAP and the Workfile

The Appraisal Foundation website has started posting more and more interesting and pertinent information on appraising. As markets continue to trend downward and values quickly change, it is important that appraisers document and support their work, and in so doing, have a complete and detailed workfile.In the Appraisal Foundation\USPAP frequently asked question section is a good summary of what is need and should be held in the appraisal work file. Should your appraisal or valuations every be challenged the contents of a well documented workfile including, contracts, reports, comps located, scope of work, notes and documentation of market trends all will serve you well in defending your value conclusions.

CONTENTS OF A WORKFILE

Question:	What information must be retained in an appraiser’s workfile?
Response:	An appraiser must prepare a workfile for each appraisal, appraisal review, or appraisal consulting assignment. The Record Keeping section of the ETHICS RULE states:
		The workfile must include: the name of the client and the identity, by name or type, of any other intended users; true copies of any written reports, documented on any type of media; summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser’s signed and dated certification; and all other data, information, and documentation necessary to support the appraiser’s opinions and conclusions and to show compliance with this Rule and all other applicable Standards, or references to the location(s) of such other documentation.
	The appraiser’s assignment workfile serves several purposes. As in many other professions, the discipline of enforcement by public agencies and peer review, together with one’s self-discipline and dedication of effort, serves to ensure performance of assignments in compliance with professional standards. In addition to facilitating enforcement, a workfile aids the appraiser in handling questions from the client or an intended user subsequent to the date of the report.
	An appraiser’s assignment workfile preserves evidence of the appraiser’s compliance with USPAP and other information as may be required to support the appraiser’s opinions, conclusions, and, in the case of an appraisal consulting assignment, recommendations.