Personal Inspections during a National Health Emergency from the Appraisal Foundation
Question: Do personal property appraisers need to perform personal inspections during a national health or other emergency?
Response:Appraisers and users of appraisal services should remember that USPAP does not require an inspection unless necessary to produce credible assignment results. (Please refer to USPAP Standards Rules 7-2 and 8-2 and Advisory Opinion 2 for further guidance.) When a personal inspection would customarily be part of the scope of work, a health or other emergency condition may require an appraiser to make an extraordinary assumption about the identification, relative quality, etc. of the subject property. This is permitted by USPAP as long as the appraiser has a reasonable basis for the extraordinary assumption, as long as its use still results in a credible analysis, and as long as the appraiser complies with the reporting requirements in Standards Rule 8-2(a)(xiii) or (b)(xv).Thus, if appraisers rely on photographs, purchase receipts, inventories, maintenance logs, etc. to identify the subject property, they must reasonably believe the sources are reliable.
Appraisers must also reasonably believe the sources areadequate for identifying the other characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal, as specified in Standards Rule 7-2(e)(i-vi).
Personal property appraisers are cautioned to use great care in the use of an extraordinary assumption in lieu of a personal inspection. It may not be possible to identify relevant characteristics of some assets or to perform certain assignments without actually performing a personal inspection of the subject property. Some examples include, but are not limited to, when the scope of work makes it necessary for the appraiser to: determine whether the subject is a painting or a giclée print on canvas; obtain technical information about a diamond; ascertain a property’s current condition; or confirm its very existence. In these cases, the appraiser cannot provide a credible appraisal without conducting a personal inspection.
Source:
The Appraisal Foundation
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