When appraising a property for sale, what standard must a broker adhere to?

When appraising a property for sale, a broker must adhere to the Uniform Standards of Professional Appraising Practice (USPAP). This set of guidelines is established to ensure that appraisals are conducted consistently, ethically, and transparently, providing a reliable basis for the valuation of properties. USPAP includes standards for both the processes and reporting of the appraisal, ensuring that the final appraised value is credible and based on sound methodology.

This adherence to standardized practices is crucial because it protects consumers and maintains professionalism within the real estate industry. It ensures that appraisals are not only accurate but also defensible in the market, fostering trust among parties involved in the transaction.

Other options may influence or inform an appraisal, such as state laws or local market conditions, but USPAP serves as the foundational framework that ensures the quality and reliability of the appraisal process itself. Following this standard is essential for brokers and appraisers to operate within legal and professional benchmarks.